Keep an eye on oversold shares of Microsoft (MSFT).

After falling from about $455 to $421.50, the tech giant has become oversold at its 200-day moving average. It’s also over-extended on RSI, MACD and Williams’ %R. From $421.50, we’d like to see an initial retest of $455 near term.

Helping, analysts at Loop Capital just raised its price target on MSFT to $550 from $500 with a buy rating. “The adjustment comes amidst expectations of robust growth driven by Microsoft’s investments in generative artificial intelligence,” says Investing.com.

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Analysts at Wedbush also believe Microsoft will be one of the top 10 tech winners for the AI Revolution in 2025. “The analysts believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and over $2T of incremental AI capital expenditure over the next three years,” as noted by Seeking Alpha.

Evercore ISI analysts also listed MSFT as one of the top software stocks for 2025, too. 

Sincerely,

Ian Cooper