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Microsoft Soars on AI Boost: Guggenheim Upgrades to Buy
27 Oct
Summary
- Guggenheim Securities upgrades Microsoft to "Buy" rating
- Sees 12% potential upside with $586 price target
- Microsoft's Azure cloud and Copilot AI driving growth
On October 28, 2025, Guggenheim Securities announced that it has upgraded Microsoft (NASDAQ:MSFT) to a "Buy" rating from its previous "Neutral" stance. The investment firm also set a new price target of $586 for Microsoft's stock, implying around 12% potential upside from the current trading levels.
According to Guggenheim analyst John DiFucci, Microsoft remains one of the key long-term winners from the ongoing adoption of artificial intelligence (AI) technology. This optimism is driven by the continued momentum in Microsoft's Azure cloud platform and the integration of Copilot, the company's AI-powered assistant, across its productivity suite.
DiFucci also highlighted that Microsoft's dominant position in the enterprise software market gives it a unique advantage to directly monetize AI features within its Office ecosystem. Additionally, the analyst noted that Microsoft's Windows operating system has been performing better than market forecasts, contributing nearly one-fifth of the company's total profits despite accounting for only around 10% of overall revenue.
As of October 28, 2025, Microsoft's shares have risen approximately 32% year-to-date, benefiting from robust investor confidence in the company's AI-linked revenue growth and its expanding software ecosystem.
