Microsoft under pressure: Why analysts remain bullish despite the recent selloff

Microsoft shares came under pressure after Stifel cut its price target and amid concerns over the high cost of the company's aggressive AI investments and recent Xbox price hikes. Despite the near-term pullback, Wall Street analysts remain bullish on Microsoft long-term, citing its OpenAI partnership, Azure AI expansion and Copilot integration as key growth drivers. Analysts view the correction as a potential buying opportunity, though investors are watching Azure growth, AI capex and margin trends closely.