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Microsoft Shares Dip on AI Disruption Fears, Goldman Sees Buying Opportunity
Goldman Sachs maintains buy rating, $600 price target on Microsoft stock despite Azure growth concerns
Published on Feb. 13, 2026
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Microsoft's stock has fallen 17% so far in 2026 as investors worry about the potential impact of artificial intelligence on the company's Office business and slower-than-expected growth in its Azure cloud services. However, Goldman Sachs is urging investors to "buy the dip," maintaining a buy rating and $600 price target on the stock, which implies 49% upside potential.
Why it matters
Microsoft's Office suite and Azure cloud platform are core to the company's business, so any disruption or slowdown in these areas could significantly impact the tech giant's financial performance. Investors are closely watching for signs of AI's impact and Microsoft's ability to navigate the competitive cloud computing landscape.
The details
Goldman Sachs analyst Gabriela Borges wrote that Microsoft's recent earnings report, which showed 39% revenue growth at Azure, slightly below expectations, has resurfaced questions about the company's return on investments and Azure's competitive positioning. Borges explained that Microsoft is currently supply constrained, with incremental capacity being directed more towards internal use cases like the Copilot AI assistant rather than revenue-generating external workloads. This has contributed to the near-term concerns around Azure's monetization, but Borges believes it is a strategic choice by Microsoft to prioritize internal initiatives that may pay off in the long run.
- Microsoft's stock has fallen 17% since the start of 2026.
- Microsoft reported its most recent earnings in February 2026.
The players
Microsoft
A multinational technology company known for its Windows operating system, Office productivity suite, and Azure cloud platform.
Goldman Sachs
A leading global investment bank that has maintained a buy rating and $600 price target on Microsoft stock.
Gabriela Borges
A Goldman Sachs analyst who authored the research note on Microsoft.
What they’re saying
“We find the analogy of an iceberg useful: there is a portion of compute capex that is 'above the surface' i.e. directly monetized and visible in Azure numbers and Office 365 every quarter. The remaining compute is 'below the surface' i.e. not directly monetized today but may be monetized in the future and highly strategic to Microsoft's broader priorities.”
— Gabriela Borges, Analyst (Goldman Sachs)
What’s next
Goldman Sachs believes the recent pullback in Microsoft's stock has created a buying opportunity, and the bank maintains its $600 price target on the stock.
The takeaway
Microsoft's stock has been hit by fears of AI disruption and slower-than-expected Azure growth, but Goldman Sachs sees the recent dip as a chance for investors to buy into the tech giant's long-term potential, particularly as it prioritizes internal initiatives that may pay off down the line.
