Key Takeaways:
- Wedbush's Dan Ives says markets are mispricing Microsoft's stock
- Ives made the call as Microsoft's Build 2026 conference kicked off in San Francisco
- The analyst sees AI monetization as undervalued by the market
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Wedbush's Dan Ives says Microsoft stock is mispriced as Build 2026 kicks off
Microsoft Corp. shares are being mispriced by the market as the software giant kicks off its annual Build conference in San Francisco, according to Wedbush Securities analyst Dan Ives.
"The market is not properly valuing Microsoft's AI monetization pathway," Ives, a managing director at Wedbush, said on CNBC's "Closing Bell." "Build is the catalyst that will remind investors of the massive opportunity ahead."
Microsoft's Build conference runs June 2-3 at the Fort Mason Center, with Chief Executive Officer Satya Nadella delivering the keynote. The event typically outlines the company's vision for Windows and artificial intelligence integration across its product suite. This year's conference comes as Microsoft competes with Alphabet Inc., Amazon.com Inc. and a growing roster of AI startups for enterprise cloud and AI workloads.
Ives' bullish call contrasts with recent market sentiment that has weighed on mega-cap tech stocks amid concerns about AI spending returns and potential antitrust scrutiny. Microsoft shares have traded in a range this year as investors debate the pace of AI revenue conversion from the company's substantial capital expenditures.
The analyst's view aligns with his broader thesis that AI infrastructure spending remains underappreciated by the market. Wedbush has been among the more vocal bullish voices on Microsoft, citing the company's lead in enterprise AI through its Copilot products and Azure cloud platform.
Microsoft is scheduled to hold its Q4 FY2026 earnings call in late July. The company reported $65.6 billion in revenue in its most recent quarter, with Azure and cloud services revenue growing 33% year-over-year. Investors will watch for updated guidance on AI-related revenue contribution and capital expenditure plans.
This article is for informational purposes only and does not constitute investment advice.
