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Prediction: Microsoft Stock Could Rise 65% in 2026

newsfeedback@fool.com (Rick Orford)
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⚡ Quantum Brief
Microsoft’s stock (MSFT) could surge 65% by late 2026 despite current investor skepticism, driven by aggressive AI investments and long-term growth potential in cloud computing. Heavy AI spending—part of a broader $680 billion capex push by tech giants—has triggered short-term panic, but analysts argue it positions Microsoft for dominance in enterprise AI and Azure’s expanding infrastructure. Azure’s cloud backlog and scaling demand underscore resilience, with Microsoft’s market cap at $3.1 trillion as of February 2026, despite a 2.1% dip to $404.60 per share on February 11. Historical trends suggest AI stock volatility precedes rebounds, with Microsoft’s diversified SaaS and AI portfolio mitigating crash risks compared to narrower competitors like Micron. The prediction hinges on sustained cloud adoption and AI monetization, framing current spending as a strategic bet rather than a financial drain.
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By Rick Orford – Feb 11, 2026 at 7:00PM ESTNASDAQ: MSFTMicrosoftMarket Cap$3.1TToday's Changeangle-down(-2.10%) $8.67Current Price$404.60Price as of February 11, 2026 at 3:58 PM ETMicrosoft is spending billions on AI while investors panic. Here's why this could be the setup for a powerful long-term rebound.Microsoft (MSFT 2.10%) is facing investor skepticism as AI spending surges, but cloud demand, backlog growth, and Azure's scale suggest long-term upside may be building beneath the surface. Stock prices used were the market prices of Feb. 5, 2026. The video was published on Feb. 11, 2026. Read NextFeb 11, 2026 •By Bram BerkowitzThe "Magnificent Seven" Plan to Spend $680 Billion Largely on Artificial Intelligence Capex: Is Now the Time to Pile Into the Group?Feb 11, 2026 •By Rick OrfordCould AI Stocks Crash in 2026? Here's What History Says Happens Next.Feb 11, 2026 •By Adam SpataccoWhy Are Software Stocks Down?Feb 11, 2026 •By Adam Levy1 Unstoppable Artificial Intelligence Stock to Buy With $400 Right NowFeb 11, 2026 •By Keith SpeightsBetter AI Stock to Buy on the Dip: Micron or Microsoft?Feb 10, 2026 •By Daniel Foelber3 Big Mistakes to Avoid When Buying the Dip on Software-as-a-Service (SaaS) Growth StocksAbout the AuthorRick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options. The most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News, cover his work. His passion is business, and he works tirelessly to deliver content in an easy-to-understand manner. In 2018, Rick wrote The Financially Independent Millennial to inspire his readers with his story about becoming financially independent at age 35 despite not learning about money when he was younger. His books are easy to read and often refer to key points that “He would tell his younger self.” When not thinking about business, Rick writes (mainly about cruise ship travel) for his travel blog and is an enthusiast of fast cars, technology, & cooking.CMFrickorfordStocks MentionedMicrosoftNASDAQ: MSFT$404.60 (2.10%) $8.67*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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