Microsoft Eyes $4 Trillion Badge

Wedbush analysts say Microsoft MSFT is lining up to join Nvidia(NASDAQ:NVDA) in the exclusive $4 trillion market-cap club this summer. The firm has an Outperform rating on the stock and a $600 price target, and it's one of Wedbush's Best Ideas.

According to lead analyst Daniel Ives, AI is driving the next leg of this bull market. He's seeing enterprise customers across financials, government and retail rapidly convert pilot projects into full-scale AI deployments. In fact, he expects over 70 percent of Microsoft's installed base to tap AI features within three years.

Wedbush thinks fiscal 2026 will mark the true inflection point for Azure's AI-fueled growth. They believe the company is just beginning to reap the multiplier effects of Nvidia's GPU leadership, and that Copilot deployments alone could add nearly $25 billion to Microsoft's top line by then.

Despite AWS and Google Cloud nipping at its heels, Microsoft's AI-first cloud stack gives it an edge in hyperscale scenarios. Wedbush sees this as Microsoft's shining moment, with AI set to reshape cloud growth and margin trajectories for CEO Satya Nadella and company.