Microsoft (MSFT) has been one of the most successful stocks in market history, rising from a split-adjusted price of about $0.06 per share to its Dec. 15 price of $474.82. That means investors in Microsoft when it went public in 1986 it would have seen incredible gains.
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Despite its successes, for the stock to reach $1,000 per share, it would need to about double from its current prices. That’s a tall order for the third-largest company in the S&P 500, even though it’s a tech bellwether. But is it possible? Here’s what it would take.
Also see whether you could retire today if you had bought Microsoft stock 10 years ago.
Microsoft by the Numbers
To project where Microsoft might go in the future, it’s best to start with a look at where it’s at. Here are some relevant numbers regarding the current status of Microsoft:
- Price as of Dec. 15, 2025: $474.82
- Year-to-date return: 13.44%
- One-year return: 5.14%
- Five-year return: 117.22%
- Dividend yield: 0.77%
- Market capitalization: $3.529 trillion.
At its current price, Microsoft stock would have to gain 110.6% to reach $1,000 per share. While that’s a tall order, it’s not unprecedented. In 1987, 1991 and 1998, Microsoft returned 124.87%, 121.76% and 114.60%, respectively, per SlickCharts. But those gains were a long time ago. In 1987 and 1991, Microsoft was making its first big strides to dominate the computer software market, and it exhibited explosive growth. In 1998, Microsoft got swept along with countless other stocks in the tech bubble that popped in 2000. In that year alone, Microsoft lost 62.85%.
But 25 years later, Microsoft is a different animal altogether. While still a market leader, it’s not the same type of aggressive growth stock that it once was. Hitting that magic $1,000 price target could still be in reach.
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What It Would Take To Hit $1K
For Microsoft to nearly double in price, a lot will have to go right for the company. Here are some of the ways it could happen.
- The company has announced plans to invest roughly $10 billion in an artificial intelligence (AI) data hub in Portugal, according to Reuters. With AI currently the hottest trade in the market, this could be a huge tailwind for the stock.
- Microsoft is also seeing explosive growth in its cloud and enterprise businesses. Continued growth will help power its profit engine, likely translating to a higher stock price.
- The company currently trades at a price-to-earnings (P/E) multiple of about 33.8. If market players get more optimistic about Microsoft’s prospects, a multiple expansion could move the stock price up even without any earnings gains.
- Continued positive market sentiment and macroeconomic factors, such as falling inflation and interest rates, could drive the stock higher.
Headwinds and Obstacles
Market analysts rarely make long-term projections, preferring to set price targets no more than one year in advance. Currently, the consensus 12-month price target for Microsoft is $630.33, suggesting a potential one-year gain of about 33%. That’s a good start, but it still leaves the stock a long way from $1,000.
In spite of the tailwinds that Microsoft enjoys, there are still plenty of potential setbacks.
- Macroeconomic risks: If the stock market and/or the economy weaken, or if interest rates or inflation rise, it could be hard for Microsoft’s stock to continue higher.
- Regulatory or compliance risks: Big Tech is always under a regulatory microscope; the announcement of any investigations into Microsoft’s business practices or unfavorable legislation could be a risk.
- Reverse of market sentiment: Currently, the market is bullish on AI spending. But $10 billion is a lot to fork over for a data center, and it is just the tip of the AI-spending iceberg. If the market sours on Big Tech spending, Microsoft could suffer.
- Competition: Microsoft is a great company, but that doesn’t mean it doesn’t have able competitors that it has to fend off. Apple, Google, Amazon and more compete with Microsoft in various market sectors.
The Bottom Line
In the short term, it would take a lot for Microsoft shares to reach the lofty $1,000 level. But that doesn’t mean it’s impossible. Continued bullish market sentiment, P/E multiple expansion and outsize earnings could result in large gains.
But the $1,000 scenario is much more plausible over a period of five to 10 years. This makes Microsoft seem like a long-term play for long-term investors. However, you should temper your expectations if you’re looking for the stock to hit $1,000 over the short term.
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This article originally appeared on GOBankingRates.com: Can Microsoft Stock Reach $1K?
