The AI rally seems back for now, though it is very likely to be temporary due to the macros and tariffs. MSFT stock is still down 8.3% from its peak and could continue rallying in the meantime. The consensus price target of $503.3 implies 17.3% upside.

Microsoft reported its Q3 earnings on Wednesday, blowing analysts' estimates out of the water with massive revenue and earnings per share.

Key Takeaways Microsoft shares surged in extended trading Wednesday after the company issued quarterly results and guidance that topped Wall Street's expectations. boosted by strong growth in its cloud business.