Well-Known Analyst Cuts MSFT Price Target, Says Big Tech Will Undergo “Covid Playbook”

Larry Ramer

Thu, Apr 10, 2025, 6:40 AM 2 min read

Dan Ives, a salient tech expert astatine Wedbush Securities, lowered his terms people connected Microsoft (MSFT) to $475 from $550 recently, citing his content that spending connected information centers volition driblet going forward.

Additionally, Ives, speaking connected CNBC, suggested that the script for Big Tech implicit the longer word would beryllium akin to what the assemblage underwent during the coronavirus pandemic.

A improvement squad moving unneurotic to make the adjacent mentation of Windows.

Why Ives Expects the Big Cloud Players' Spending to Fall

Spending connected information centers by MSFT, Alphabet (GOOG), and Amazon (AMZN) is apt to autumn 10% to 15%, portion immoderate superior expenditures are being paused, Ives said.

Many tech companies person important vulnerability to China, and the precocious tariffs connected the Asian state volition marque a ample fig of Big Tech firms' projects overmuch much expensive, the expert indicated.

"China is the epicenter, and erstwhile you halt projects, the process snowballs," making it hard to restart initiatives, the expert explained.

The Outlook for Big Tech

Ives expects Big Tech firms to study precise anemic Q2 results. Over the longer term, helium plans to usage "the Covid playbook" erstwhile it comes to assessing Big Tech companies. Specifically, the expert volition "throw retired the adjacent 2 oregon 3 quarters" and effort to find the "winners" based connected their outlooks for 2026.

Meanwhile, Ives expects Big Tech stocks to beryllium precise volatile for the adjacent fewer weeks.

While we admit the imaginable of MSFT, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than MSFT but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.