Wolfe Research Lowers Microsoft Price Target to $525

Wolfe Research revealed in a note on Monday that it has cut its price target on Microsoft to $525 from $570, pointing to surging memory prices that have forced the firm to raise its fiscal 2027 capital expenditure estimate to $270 billion from $230 billion, while maintaining its Outperform rating.

Analyst Alex Zukin told investors that recent memory price increases, including commentary from Micron’s latest earnings, led Wolfe to revise its already above-consensus capex estimates higher to account for rising component costs for AI infrastructure.

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