5 Most Promising Tech Stocks According to Analysts

1. Microsoft Corporation (NASDAQ:MSFT)

One-Year Price Target: 284.73

Microsoft Corporation (NASDAQ:MSFT) is one of the most popular stocks among the Wall Street analysts and hedge funds. Microsoft Corporation (NASDAQ:MSFT) is making waves in 2023 amid the company’s huge investments in AI and Satya Nadella’s ambitious plans to revamp Bing search. Microsoft Corporation (NASDAQ:MSFT) recently started rolling out ChatGPT-powered Bing search features for desktop users. As of 16:09 PM ET, February 13, MSFT shares were trading at around $271. The Wall Street analysts’ average price target of $284 shows significant upside potential.

Polen Global Growth Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”

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