Bernstein Raises Microsoft Stock (MSFT) Price Target to $660, Addresses AI Buildout Concerns

Bernstein analyst Mark Moerdler lifted his price target on U.S. tech giant Microsoft (MSFT) on Monday from $647 to $660. Moerdler is a five-star analyst who ranks 527 out of more than 12,000 Wall Street analysts tracked by TipRanks. His new price target implies about 32% upside from Friday’s closing price of $499.99.

Moerdler, who also kept his Buy rating on Microsoft, contended that “the setup for the stock is really strong.” This is despite worries about whether the tech giant is overbuilding its AI capacity.

Who Is Mark Moerdler?

As a five-star analyst, Moerdler ranks in the top 5% of analysts tracked on TipRanks. He covers the tech industry, focusing on the U.S. and Germany.

Moerdler boasts a 71% success rate. He has also generated an average return of 15.20% for investors with his ratings.

The analyst is even more successful with his Microsoft ratings. For MSFT stock, he boasts an 86% success rate and an average return of 26.12%.

Why Bernstein Remains Bullish on Microsoft Stock

According to Moerdler, investors remain concerned that Microsoft might be spending too much cash to build its AI capacity. There are fears demand might exceed supply in the future. These concerns were not completely erased by Microsoft’s recent Q4 2026 earnings beat.

However, the analyst believes that investors do not have to worry as Microsoft is “taking a surprisingly measured approach” to its build-out. Moerdler pointed to many factors:

• Microsoft’s cloud revenue has grown faster than the square footage of its data center facilities.
• The tech giant’s expanded lease obligation is spread over several years. Data center capacity will continue to grow steadily.
• Microsoft has almost no purchase deals for power, cooling, and other hardware beyond 12 months.
• Microsoft can redirect its AI capacity to its CPU-focused cloud business even if AI demand slows.

“Simply stated, Microsoft is not building too fast, but rather taking a surprisingly measured approach given the demand signals [it is] receiving and [its] ability to easily pivot facilities to meet demand (CPU or GPU),” Moerdler noted.

Is Microsoft a Buy or Sell Now?

Across Wall Street, analysts remain highly bullish on Microsoft’s shares. The stock boasts a Strong Buy consensus rating based on 34 Buys and one Hold assigned over the past three months.

In addition, the average MSFT price target of $560.13 implies about 10% upside (see MSFT stock forecast here).