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Microsoft (MSFT) shares are in focus after the tech behemoth said Lumma malware infected nearly 400,000 Windows computers globally between March 16 and May 16.
Hackers use Lumma to steal passwords that enable them access to users’ bank accounts, credit cards, and cryptocurrency wallets.
Microsoft stock registered a muted response to the news and is currently up a tad more than 30% versus its year-to-date low.
Is Microsoft Stock a Buy Despite Lumma News?
Wall Street firms are keeping positive on MSFT shares despite the Lumma announcement as well.
Goldman Sachs, for example, raised its price target on Microsoft stock this week to $550, indicating potential upside of more than 22% from current levels.
According to the firm’s analysts led by Kash Rangan, announcements the company made at its annual “Build” conference inspire confidence in its AI investments.
“These investments help position MSFT at the forefront of the developer tool ecosystem and help establish a robust and interoperable ecosystem for agentic AI,” he told clients in a recent note.
AI Investments to Unlock Upside in MSFT Shares
The Goldman Sachs analyst is bullish on the full range of AI tools that Microsoft has launched in recent years.
These include the titan’s Model Context Protocol, GitHub Copilot, Azure AI Foundry, and Copilot Studio – all of which are seeing booming customer growth.
All in all, the investment firm sees MSFT shares as strongly positioned to benefit from a shift of generative artificial intelligence from the “Infrastructure” layer to “Platform/Application” layers.
Note that artificial intelligence investments have already started reflecting in Microsoft’s financials. In April, the Nasdaq-listed firm reported its financial results for its fiscal third quarter that handily topped Street estimates.
What’s the Consensus Rating on Microsoft?
Other Wall Street analysts are just as bullish on Microsoft stock due to its commitment to AI in 2025.
The consensus rating on MSFT shares currently sits at “Strong Buy” with the mean target of about $511 indicating potential upside of nearly 12% from current levels.
