Wells Fargo Raises Microsoft Price Target to $725, Citing AI Catalysts and Restructuring

Wells Fargo has raised its price target on Microsoft to $725 from $700 while maintaining an Overweight rating and adding the company to its fourth-quarter Tactical Ideas list. Analyst Michael Turrin noted an attractive tactical setup heading into year-end, pointing to Microsoft's valuation at roughly 25 times price-to-earnings. Key upside drivers include upcoming mid-November Ignite conference announcements on AI models and custom silicon, alongside a planned reporting restructure into two segments—Agents and Infra, and Devices and Consumer—which will disclose Azure revenue purely on a dollar-denominated consumption basis.