• Goldman Sachs reaffirms a "Buy" rating for Microsoft Corporation (NASDAQ:MSFT), with a current stock price of $401.84.
• The recent sell-off in Microsoft's stock is attributed to a reset in multiples and product mix shift, not a decrease in structural demand.
• Microsoft's investment in artificial intelligence impacts its near-term free cash flow, yet strong bookings indicate sustained demand.

Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for its software products, cloud services, and hardware devices. It competes with other tech giants like Apple, Google, and Amazon. On February 12, 2026, Goldman Sachs maintained its "Buy" rating for Microsoft, with the stock priced at $401.84 at the time of the announcement.

The recent sell-off in Microsoft's stock is due to a reset in multiples and risks linked to a shift in product mix, not a drop in structural demand. Despite the volatility, Microsoft's competitive advantage is growing. The stock price has decreased by $2.53, or about -0.63%, with a trading range between $398.01 and $406.20.

Microsoft's investment in artificial intelligence is affecting its near-term free cash flow. However, strong bookings and remaining performance obligations show ongoing demand. The stock has a market capitalization of approximately $2.98 trillion, with a trading volume of 39.71 million shares, indicating significant investor interest.

Investors are debating the return on invested capital. It is suggested to start with a 2.5% net asset value position to balance conviction with macroeconomic risks. Scaling up is advised as valuation compresses or operational performance improves. The stock has seen a 52-week high of $555.45 and a low of $344.79, reflecting its volatility.