Microsoft rises: Guggenheim turns bullish before earnings on Office AI monetization

Microsoft's MSFT.O shares up 1.4% at $530.99 premarket as Guggenheim upgrades to 'buy' from 'neutral', citing AI opportunity in its Office product

Brokerage sets PT at $586, implying 12% upside to stock's last close

Guggenheim analyst John DiFucci says it's "clear" that MSFT, along with other hyperscalers, is an AI beneficiary, referring to the benefits of Azure

"...but we believe Microsoft has a near monopoly in the Productivity Suite market with its Office offering and therefore has been, and will be able to continue to directly monetize AI offerings (namely Copilot) tied to that product suite," DiFucci writes in note to clients

Windows also set to outperform consensus numbers over the near to medium term, "and this second monopoly likely still contributes close to 20% of Microsoft’s profit," he says

MSFT, which is expected to post ~15% yr/yr rev growth in fiscal Q1 after the bell on Weds, is among four U.S. tech titans slated to report earnings this week under the specter of an AI bubble

Now, 61 analysts rate MSFT shares "strong buy" or "buy", rest rate "hold", and their median PT is $630, latest LSEG data shows

MSFT shares, which have risen in prior six sessions, up 24% YTD through Fri. S&P 500 Technology sector .SPLRCT up nearly 26% in 2025, while the Nasdaq .IXIC up 20% through Fri close