Microsoft stock (NASDAQ: MSFT) opened Monday’s trading session at $393 after briefly touching a day’s high of $401 last week. The software giant has remained relatively stable in a month surging close to 7.2% since mid-June. The price rise has given confidence to investors who are eager to see MSFT break the $400 barrier. It tested the wall on Thursday and is now gearing up to climb above the previous high.
On the heels of the recent price surge, investment banking firm TD Cowen has maintained its buy rating for Microsoft stock. Andrew Sherman, TD Cowen’s stock market analyst, wrote in a note to clients on Friday (July 17, 2026) to accumulate MSFT and gear up for an upward price trajectory. The analyst is extremely bullish on Microsoft stock and predicts that the software titan is on its way to generate double-digit gains.
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Microsoft Stock: TD Cowen’s Maintains MSFT Price Target
TD Cowen’s Andrew Sherman has predicted that Microsoft stock could reach a price target of $540. That would be a profit of $147 per share if traders take an entry position in MSFT today at $393. That is also an uptick and return on investment (ROI) of approximately 37% from its current price. Therefore, an investment of $1,000 could turn into $1,370 if the price projection turns out to be accurate.
Microsoft has been under the radar for its excessive capital spending on AI, reaching close to $120 billion. The company has diversified its capex through data centers and enterprise deployment, and is building its own graphics processing units (GPUs) called Maia accelerators. These home-grown chips are designed specifically for data centers, to power-up the AI infrastructure. Therefore, Microsoft stock remains on the bullish side of Wall Street, and TD Cowen is confident of MSFT not only going above $400, but also breaching the $500 level.