Microsoft, Salesforce price targets raised as AI disruption fears ease

Traders Union
All News
Financial News
Microsoft, Salesforce targets raised

Highlights

Microsoft's price target rises to $550 from $500 and Salesforce to $290 from $250 amid AI resilience and robust enterprise software performance.
Microsoft shares gain 25% since July 29 earnings and Salesforce rallies 29% since August 26, driven by strong AI infrastructure momentum and anticipation ahead of Dreamforce.
FedWatch tool shows rate hike odds drop to 52% from 63% after dovish Fed comments, while Friday's U.S. jobs report is expected to show 65,000 added jobs and 4.2% unemployment.

Software rebound drives target increases

As reported by CNBC, the price targets on Microsoft and Salesforce are being lifted after both companies outperform previous expectations during a broader comeback in enterprise software stocks.

The sector is among Thursday's strongest groups after a run that has built since late July, helped by signs that AI is not disintermediating established software businesses. Microsoft is up about 25% since its July 29 earnings report, while Salesforce has rallied 29% since reporting earnings on Aug. 26.

Microsoft's target is raised to $550 from $500, and Salesforce's target is increased to $290 from $250. The decision comes even after both shares move above earlier targets, with continued confidence tied to Microsoft's spending discipline around AI infrastructure and stronger-than-expected traction for Microsoft 365 Copilot.

Salesforce is also drawing support ahead of its annual Dreamforce conference in two weeks, an event that typically generates new contracts. The company has assembled a broad speaker lineup spanning AI and other industries, reinforcing expectations for commercial momentum.

Rate outlook and data shape market mood

Broader market sentiment is also improving as Treasury yields fall after Federal Reserve Governor Christopher Waller says he favors keeping interest rates steady if upcoming inflation data does not surprise. That shift is feeding into expectations for the Fed's Sept. 15-16 meeting, with CME Group's FedWatch tool showing the odds of a rate hike easing to 52% from 63% on Wednesday.

Even with U.S. oil benchmark WTI crude trading slightly higher amid uncertainty over the war in Iran, equities are taking more direction from interest rates. The S&P 500 is on pace for its best session since early August.

Investors are also looking ahead to key economic and corporate updates. Docusign, Zscaler and Lululemon are set to report earnings after Thursday's close, while Friday's U.S. jobs report is expected to show 65,000 positions added in August and unemployment edging up to 4.2%, according to economists polled by FactSet.

Because July posted a negative 23,000 jobs reading, the labor data carries added weight for markets. A stronger report, especially if paired with positive revisions, could ease concerns that the labor market is weakening.

Our earlier analysis of the S&P 500’s rally highlighted how traders were positioning ahead of key U.S. economic releases while weighing earnings momentum and geopolitical risks. We also noted the index was holding a broadly bullish technical structure above major moving averages, but with mixed momentum and some overbought signals that could increase short-term volatility around resistance levels.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.