Microsoft Poised for 42% Surge in 2025, Says Evercore ISI

Microsoft Corp. (MSFT) is projected to rebound strongly in 2025, with Evercore ISI forecasting a 42% surge following a challenging end to 2024. The tech giant, which saw its shares drop 7% in the final two weeks of 2024 and an additional 0.7% on the first trading day of 2025, is expected to benefit from increased free cash flow, Azure expansion, and growing adoption of its AI-powered Copilot tools.

Evercore ISI analysts, led by Kirk Materne, highlighted Microsoft’s resilience in a recent note to investors. Despite underperforming the S&P 500 and the iShares Expanded Tech-Software Sector ETF (IGV) in 2024, Microsoft has historically rebounded strongly after periods of underperformance.