Dan Ives Says ‘Market Is Mispricing’ MSFT Stock
June 2, 2026
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Ives says Microsoft is entering a monetisation phase as Build, Copilot and Azure reinforce its AI and developer push.
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He views quantum computing expansion as part of a ‘Fourth Industrial Revolution’ trend led by Big Tech.
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Ives describes Alphabet’s $80B equity sale as a ‘smart way to do it.’
Wedbush Securities analyst Dan Ives struck a bullish tone on Microsoft, saying the market is underestimating the company’s AI-driven growth story and mispricing its stock ahead of a potential monetization phase in the coming months.
When asked about his bullish price target of $575 on the stock with more than 25% upside, and whether the company’s announcements at its annual software developer conference in San Francisco had changed his long-term view on the stock, Ives said Microsoft is firmly focused on strengthening its position in the ongoing AI and developer arms race.
“They’re defending their turf. They’re going after developers, and that’s really front and centre in his arms race that we were seeing play out,” Ives said, referring to the company’s Build conference announcements. He was speaking on CNBC’s Closing Bell.
He added that the broader narrative still centers on monetization ahead. “I think right now, the market is mispricing Microsoft to what I believe is still going to be the monetisation phase that’s going to happen the next six, 12 months.”
Ives said he continues to like what Microsoft is doing across Copilot, Build and Azure.
MSFT closed Tuesday’s session down 4.17% but recovered marginally in after-hours trading, edging up 0.05% at the time of writing.
Ives Says Microsoft Quantum Push Part Of Bigger Tech Shift
Addressing growing investor attention on quantum computing, Ives framed Microsoft’s direction as part of a broader technology shift rather than a short-term catalyst.
“You want to see more exposure to quantum, given where Microsoft plays,” he said.
He linked the development to a larger structural theme: “It’s our view. That’s a derivative of the Fourth Industrial Revolution that we’re seeing… this is one where you want to see Microsoft dive into the deep end of the pool.”
Ives Backs Alphabet’s $80B Equity Move As Strategic
Turning to Alphabet, Ives commented on the company’s planned $80 billion equity sale, describing it as a strategically sound approach.
“Look, I think that’s the smart way to do it. And obviously, you know, you see Berkshire as another sort of backer of it,” he said.
He noted the scale of spending across the industry: “We’re talking about a trillion dollars that’s going to be spent in big tech next year in terms of cap backs.”
Ives also downplayed concerns about market reaction, saying the structure of the sale reflects confidence rather than stress. “You want to see them go on the offensive, not defensive.”
‘Third Inning Of The AI revolution’
On broader market sentiment and AI trade sustainability, Ives said investors may be underestimating the runway ahead.
“It’s my view, we’re still a third inning of the AI revolution,” he said, adding that short-term volatility should be expected but does not change the long-term trajectory.
He positioned Alphabet, Microsoft and Amazon as central players in the evolving landscape, noting their leadership roles in cloud and AI infrastructure.
MSFT Stock: Retail View
On Stocktwits, retail sentiment around MSFT was in the ‘bullish’ territory at the time of writing amid ‘high’ message volumes.
The MSFT stock is down nearly 9% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Aveek Bhowmik has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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