MSFT Rebounds to $385 as OpenAI $1T IPO Lifts $550 Targets

Microsoft shares have recovered to around $385 after a 25-35% selloff from 2026 peaks driven by $190B AI capex concerns. Q3 FY2026 results showed $82.9B revenue (+18% YoY), Azure growth of 40%, and AI annualized run-rate reaching $37B (+123%). Wall Street maintains near-unanimous Buy ratings with a median $550-$562 target, citing cheaper multiples versus peers and potential upside from an OpenAI IPO at $1T that could value Microsoft's 27% stake at $270B.