Microsoft has become ridiculously oversold at $459.96.

It’s also oversold on RSI, MACD, Williams’ %R, and on Full Stochastics. The last time these indicators were this oversold, MSFT bounced from about $468 to a high of $493.50. We’re looking for a similar bounce again now.

Helping, analysts at Goldman Sachs has a buy rating on MSFT with a $655 price target on MSFT ahead of its earnings on January 28. Morgan Stanley has an overweight rating with a $650 price target. Barclays has a $610 price target. JPMorgan has a buy rating with a $575 price target. And Wedbush has an outperform rating and a $625 price target.

Also, according to Wedbush analyst Dan Ives, “We view MSFT as the clear front-runner on the enterprise hyper-scale AI front,” as quoted by Barron’s. “In a nutshell we believe Microsoft is set to have a massive 2026 and the stock is a compelling buy at these levels.”

“Wall Street is still underestimating Microsoft’s AI growth potential, setting up the company to prove its doubters wrong next year,” they added.

Sincerely,

Ian Cooper