Microsoft Stock Forecast

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Microsoft Stock Forecast

Microsoft Market Cap Could Double By End Of 2027

Microsoft has a market cap of $3.9 trillion. This means it is among the group of most valued tech companies. Still, it lags behind many companies. One such company is Apple, which has a market cap of $4.9 trillion.

Analysts think the market cap of Microsoft could double by the end of 2027. In other words, Microsoft could become a more valuable company than even Apple.

Microsoft's AI Revenue Is Growing

The Microsoft share price continues to soar as its quarterly numbers are very good. However, investors mostly focus on Microsoft's cloud computing business.

Sure, Azure is a key growth driver, but let's not forget that Microsoft can also tap into other opportunities related to AI. Microsoft 365 Office is a good example, as its revenue continues to grow at a fast pace.

The Microsoft 365 Copilot is a fine example of what we said. It now has 30 million paid users. That's the type of area that market players are underestimating.

In FY2026, the overall revenue growth of Microsoft was in double digits. Azure was leading with a growth rate of 43%. Meanwhile, the revenue from commercial cloud went up by 14%.

We must understand that many of the AI-related opportunities pursued by Microsoft are still in early stages. So, we can expect a strong upside in Microsoft's share price over the next year.

Another thing which tells us that Microsoft stock is undervalued is its valuation. It is only trading at a trailing P/E ratio of only 29. To give you a comparison, Apple is trading at a ratio of almost 38.

The bottom line is that Microsoft's revenue could skyrocket over the next 12 months. This will be mostly due to the AI-related opportunities.

The analysts are confident that Microsoft has a good chance of nearly doubling its market cap in the coming months. This directly means we can also expect Microsoft share price to also double!

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