AI Boom Poised to Propel Microsoft and Alphabet to $5 Trillion Valuation by 2026

December 16, 2025
AI Boom Poised to Propel Microsoft and Alphabet to $5 Trillion Valuation by 2026
  • Investors expect AI-driven growth to push Alphabet and Microsoft toward roughly $5 trillion in market value by 2026, supported by AI enhancements, cloud expansion, and solid quarterly results.

  • Wells Fargo analyst Michael Turrin sets a target of about $700 per Microsoft share, implying roughly 47% upside from current levels.

  • Microsoft’s Copilot and AI features are expanding across its software suite, with Copilot family users surpassing 150 million monthly active users as of the September quarter.

  • The article cites Motley Fool stock-recommendation context, including performance notes and disclosures about paid partnerships.

  • Microsoft has reportedly invested about $13 billion in OpenAI, underscoring a deep, long-standing collaboration beyond financial ties.

  • Analysts from Bernstein, Evercore ISI, and Raymond James reiterate Outperform ratings on MSFT, reinforcing confidence in further upside.

  • The December Edge update (Stable channel v143) emphasizes security, privacy, and usability, which has boosted investor sentiment.

  • Microsoft stock sits between its 52-week range and above the 200-day moving average, signaling technical strength alongside strong fundamentals.

  • OpenAI’s CFO highlights the critical role of compute demand and the need for partnerships, notably with Microsoft, to scale AI capabilities.

  • Microsoft signed a partnership with INBRAIN Neuroelectronics to apply AI tools in medicine, leveraging graphene-based neural technologies.

  • Wall Street remains broadly bullish on MSFT, with high buy ratings and price targets in the range of $600–$650.

Summary based on 7 sources


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