The current bull market has been dominated by just a handful of megacap tech stocks.
These massive tech companies have been the driving force behind the most significant advancements in artificial intelligence (AI) in recent history, providing key infrastructure for developers, developing large language models, and using AI to drive significant revenue growth for key products and business segments
While many of the largest companies have seen their stock prices continue to climb in 2026, a few haven’t kept up with the rest of the market. That’s creating buying opportunities for some, and analysts see one of 2026’s laggards climbing more than 30% over the next year. With a median analyst price target of $550, Wall Street sees the most upside for Microsoft (NASDAQ: MSFT) over the next 12 months among megacap stocks.
Microsoft is an undervalued AI leader Microsoft’s early and ongoing investments in AI have more than paid off for the business. It was an early investor in OpenAI, positioning its Azure cloud computing business as the top choice among AI developers looking to gain access to the leading AI lab’s models. While it no longer has an exclusive relationship with OpenAI, it still holds a 27% stake in the company, providing significant exposure to the leading AI lab.