Microsoft stock (NASDAQ: MSFT) reached $500 on Thursday’s opening bell and is trading at a pivotal price point. The software giant with a market cap of $3.72 trillion has struggled to rise above the $500 level for a month. A dip from here to the $490 level would strengthen the bears and erode the bulls’ confidence in the equity. The direction that MSFT takes hereon will dictate the next move for traders.

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Will Microsoft Stock Fall To $490 or Rise Above $500 Next?

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Brad Reback, the Managing Director of the global wealth management and investment banking firm Stifel Nicolaus, has predicted that Microsoft stock would rise above the $500 level and reach a new high next. The analyst upgraded his Microsoft stock price target in a note sent to clients on Tuesday (September 22, 2026), urging them to begin taking an entry position in MSFT.

The Stifel Nicolaus analyst hiked Microsoft’s stock price target to $575. The previous target for MSFT from the financial strategist was $530. He hiked the target by $45, indicating bullishness on the leading global software giant. The price prediction estimates that investors can make a profit of nearly $75 per share if they take an entry position in MSFT today.

It also marks an uptick and a return on investment (ROI) of approximately 15% from its current price. Therefore, an investment of $1,000 could turn into $1,150 if the price prediction from Stifel Nicolaus turns out to be accurate. This will reap decent double-digit returns, now that the Wall Street analyst estimates its next destination to be closer to the $600 zone.

Microsoft stock has been range-bound in 2026, as it is up close to 6% year-to-date. The software titan is yet to experience a breakout in value, as prices have mostly remained stagnant. MSFT needs a new rally to attract another round of investors into its fold and surge further in the charts.

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