Microsoft Stock Dropped 30% From Its All-Time High: 2 Reasons It Could Double by 2030

Microsoft (MSFT) dropped 30% from its all-time high but J.P. Morgan now sees a path to $625 by 2027, up from its prior target, following the company's latest earnings report. The upgrade hinges on two concrete catalysts: Azure cloud revenue accelerating 43% year-over-year and Copilot AI assistant scaling from 30 million paid seats today to a potential 60-90 million users.

J.P. Morgan calculates the Copilot expansion alone could add $41 billion in incremental revenue. Microsoft has outpaced the S&P 500 recently despite lagging over the past three years, with analysts pointing to disciplined AI capital spending and entrenched enterprise relationships as competitive moats. The stock has rebounded from its 30% drawdown as investors revalue the Azure and Copilot growth vectors.

The $625 price target implies roughly 50% upside from current levels, with bulls arguing the company could double by 2030 if both Azure and Copilot maintain current trajectories.