AI Boom Poised to Propel Microsoft and Alphabet to $5 Trillion Valuation by 2026
December 16, 2025
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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Sources

Yahoo Finance • Dec 15, 2025
Microsoft's AI advantage isn't all about OpenAI — and Wall Street loves it
The Globe and Mail • Dec 16, 2025
2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $5 Trillion in 2026, According to Wall Street
The Globe and Mail • Dec 16, 2025
2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $5 Trillion in 2026, According to Wall Street