Tech giant Microsoft (MSFT) has had its issues with artificial intelligence of late, especially the AI that does coding. But Microsoft also has a new model coming out that could represent a substantial gain for the company going forward. Investors seemed optimistic, and gave Microsoft stock a nearly 3% boost in Thursday afternoon’s trading.
The new coding model will release about the same time as Microsoft’s Build 2026 developer conference, set to run June 2 and June 3 in San Francisco. Microsoft even confirmed that the model will emerge next week, but it left quite a few questions unanswered in the wake of that confirmation.
No one knows, as yet, what the model’s name actually is. No one knows what its parameter size is, what its architecture looks like, or if any benchmark testing has been done, let alone what benchmarks have been achieved as a result. Further complicating matters is that the Build conference lasts two days, and the new coding model will be just one announcement alongside updates to the Azure AI infrastructure, Copilot, and Visual Studio Code.
Xbox Gaining
While opinions surrounding Microsoft’s gaming console are complex to say the least, opinions around new CEO of Microsoft Gaming Asha Sharma seem to be trending positive. Retiring old campaigns, dropping Game Pass prices, and reconsidering the whole concept of exclusivity are giving off good vibes early in Sharma’s tenure. Xbox’s Buzz score, reports from YouGov note, is up substantially, going from 8.5 in February 2026 to 20 in May 2026.
Several major tests, however, remain. The new console is just around the corner, with the old one now approaching its seventh anniversary this November. And with the new Steam Machine also set to emerge well before that—though the exact release date is still unknown—it could be a blow to Xbox going forward.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 10.03% loss in its share price over the past year, the average MSFT price target of $559.98 per share implies 31.44% upside potential.
