Microsoft’s third-quarter report contained “every element needed to dissipate various concerns,” according to Bernstein analyst Mark Moerdler. Perhaps the most visible positive was Microsoft’s Azure cloud-computing growth,

The AI rally seems back for now, though it is very likely to be temporary due to the macros and tariffs. MSFT stock is still down 8.3% from its peak and could continue rallying in the meantime. The consensus price target of $503.3 implies 17.3% upside.

Microsoft is slated to report fiscal third-quarter results after the market closes Wednesday, with analysts overwhelmingly bullish on the tech giant's stock.