Wedbush’s Dan Ives predicts the next $4 trillion market cap stock — one Cramer also likes
It’s all aboard for Microsoft investors as the company rides the next train towards another major win. The news Microsoft will be the next megacap to hit a $4 trillion stock market value, according to Wedbush, which predicts it will happen “this summer.” Larger-scale artificial intelligence deals are accelerating, lead analyst Dan Ives wrote in a note to clients Thursday. “Many Microsoft customers [are] now focused on deploying enterprise use cases across a number of verticals with financials, government, and retail clear standouts,” he added. Even with Microsoft shares closing Wednesday at a record high of just over $503 each, Ives said the Club stock “still has yet to price in” the upcoming wave of cloud and artificial intelligence growth and its ability to keep a competitive edge even against other big players like Alphabet and fellow Club name Amazon . A less than $40 per share move higher in Microsoft stock would take it over $4 trillion. MSFT YTD mountain Microsoft YTD Wedbush on Thursday also raised its 12-month Microsoft price target to $600 per share from $515 — implying 19% upside to the prior closing price. That PT would push Microsoft well on its way to $5 trillion, which Ives thinks could happen over the next 18 months. He maintained his outperform buy rating on the stock. Big picture It’s no surprise that Wedbush thinks Microsoft will soon join Nvidia , which on Wednesday became the first company even to enter the $4 trillion club. Shares of Nvidia, also a major portfolio name and AI leader, did not close there. However, some late-session strength Thursday could give it a shot. As for Microsoft, the Street has dramatically changed its tune following its stellar earnings beat after the market closed on April 30. The quarter crushed speculation about slowing Azure cloud growth and a deceleration in AI. The stock was already swinging higher from its lowest 2025 close on April 8, which happened before President Donald Trump paused his “reciprocal” tariffs. Shares experienced an earnings-driven 7.6% rally on May 1 and have hardly looked back since. Last week, Microsoft announced its biggest round of layoffs of the year, which should help control costs as the company continues to spend on AI within cloud. Ives pointed out Microsoft’s “capex guidance of $80 billion for FY25 and continuing to grow into FY26 as MSFT looks to continue its data center buildouts to keep pace with scaling laws and capitalize on strong demand trajectory.” Bottom line Jim Cramer has been feeling much better about Microsoft recently, adding the stock to his latest acronym, M-N-M (like M & M, get it). The others are Nvidia and Meta Platforms . (Jim Cramer’s Charitable Trust is long MSFT, NVDA, META, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
<
