Wedbush Analyst Daniel Ives Predicts Bullish Turn for Microsoft Stock Amid AI Growth Surge

Investor sentiment surrounding Microsoft (NASDAQ:MSFT) has been overly negative, but according to Wedbush analyst Daniel Ives, 2025 is poised to be a major growth inflection point for the tech giant.

Microsoft’s AI-Driven Growth to Boost Stock Sentiment

Like many tech stocks, Microsoft shares have faced pressure as investors question AI-driven growth prospects and intensifying market competition. However, Wedbush’s latest customer and partner checks suggest that deal flow is accelerating, reinforcing confidence in Azure’s growth trajectory.

Wedbush maintains that Microsoft is a must-own stock at current valuations, calling it one of the best long-term AI investment opportunities.

Microsoft’s Push for an “Agentic World”

The technology and AI powerhouse is doubling down on its vision of an “agentic world,” where enterprises deploy AI agents with enterprise-grade security, boosting business efficiency with faster and higher-quality outcomes.

According to Wedbush projections, more than 75% of Microsoft’s existing customer base is expected to integrate AI functionality into enterprise and commercial applications over the next three years. This shift could fundamentally reshape Microsoft’s business model, with 2025 marking a pivotal year for AI expansion as pricing models, beta customers, and AI use cases take shape.

AI Revenue Growth and Strategic M&A Moves

Wedbush forecasts that Microsoft’s AI-driven revenue will surpass an annual run rate of $15 billion in the upcoming quarter, signifying a transformative period for the company. Despite this, Microsoft’s stock price has yet to fully reflect this AI momentum.

Additionally, Microsoft is aggressively expanding its AI software ecosystem, and an accelerated mergers and acquisitions (M&A) strategy could further enhance its competitive edge in the AI sector.

Key Takeaways for Investors:

• Wedbush sees 2025 as a critical inflection point for Microsoft’s AI growth.

• Azure deal flow is accelerating, boosting confidence in Microsoft’s AI expansion.

• AI integration among Microsoft’s enterprise customers is expected to exceed 75% adoption within three years.

• AI-related revenue is projected to exceed $15 billion annually in the coming quarter.

• Potential M&A moves could further strengthen Microsoft’s position in AI.

As Microsoft deepens its AI capabilities, the stock remains one of the top investment picks in the AI revolution, according to Wedbush. With a strong roadmap and growing enterprise adoption, investors may see sentiment shift bullishly in the coming months.

(Sources: investing.com, reuters.com)