Microsoft (SYM: MSFT) has become unbelievably oversold at support dating back to early 2024.
It’s also over-extended on RSI, MACD, Williams’ %R and Full Stochastics. From its current price of $380.45, we’d like to see the tech giant retest $400 again initially. From there, our longer-term price target is $460, which we can potentially profit from using call options.
Helping, analysts at Wedbush just said they expect for artificial intelligence stocks, which includes Microsoft, to reach record highs this year. Wedbush believes policy uncertainties will calm down in the months ahead, and this period of downward pressure presents a “golden opportunity,” added Seeking Alpha.
The firm added, “We remain firmly bullish and believe tech stocks will ultimately make new all-time highs during the second half of 2025 despite a disaster panicked selloff to start the year.”
Also, as noted by Barron’s:
Wedbush also said Trump’s trade policies were clearly “unnerving to many growth investors we speak with around the world,” but added that the anxieties around tariffs haven’t changed his longer-term view that the U.S. is in the early stages of an artificial-intelligence revolution. He expects a $2 trillion AI capital spending blitz by Big Tech players to help stabilize the market in the long term.
In addition, Microsoft just declared an 83-cent per share quarterly dividend, which is payable on June 12 to shareholders of record as of May 15.
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