MSFT, AVGO, or PLTR: Which Tech Stock Is Wall Street's Most Attractive Pick?
Tariff wars, macro uncertainties, and increased competition in the artificial intelligence (AI) space have battered several tech stocks recently. Despite the ongoing pressures, Wall Street remains bullish on many technology players due to their solid fundamentals, strong execution, and robust long-term growth potential. Using TipRanks' Stock Comparison Tool, we placed Microsoft (MSFT), Broadcom (AVGO), and Palantir Technologies (PLTR) against each other to find the most attractive tech stock, according to Wall Street analysts.
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Microsoft (NASDAQ:MSFT)
Microsoft stock has declined more than 15% so far in 2025 due to weakness in the broader market, concerns about a slowdown in AI spending, and growing competition in the AI space. Moreover, reports of the company halting its data center projects worldwide have raised worries about its AI demand.
Also, investors are wary of the slowdown in the revenue growth of Azure and other cloud services, and the company's significant capital spending on AI amid the emergence of cheaper Chinese AI models.
Nonetheless, Microsoft bulls continue to be optimistic about the company due to its solid fundamentals, expectations of strength in Azure due to AI prospects, expectations of sustained margin expansion, and a potential rise in free cash flow as capital spending eases.
What Is the Price Target for MSFT Stock?
Recently, Piper Sandler analyst Brent Bracelin reiterated a Buy rating on Microsoft stock with a price target of $520. Following meetings with management, Bracelin maintained a positive stance on MSFT, thanks to its extensive product offerings, healthy commercial RPO (remaining performance obligation) that rose 34% year-over-year in Q2 FY25, strong operating cash flows of over $100 billion annually, and an at-scale $13 billion-plus AI business growing by triple-digits.
Bracelin believes that these factors could help the company navigate an uneven macro environment, which has recently dragged down MSFT stock. He believes that investors should buy the weakness in Microsoft stock.
With 32 Buys and three Holds, Wall Street has a Strong Buy consensus rating on Microsoft stock. The average MSFT stock price target of $510.03 implies about 42% upside potential from current levels.
See more MSFT analyst ratings
Broadcom (NASDAQ:AVGO)
Broadcom stock has declined about 37% so far this year due to tariff wars, chip export restrictions, and rising competition. Nonetheless, Wall Street remains bullish on the semiconductor company due to the demand for its application-specific integrated circuits (ASICs) or custom processors, which are experiencing robust demand due to the ongoing AI wave.
Notably, Broadcom's custom AI chips help to train and deploy AI models. The company's AI revenue in Q1 FY25 jumped 77% year-over-year to $4.1 billion. Broadcom expects its AI revenue to increase to $4.4 billion in the fiscal second quarter.
In December 2024, Broadcom disclosed that it expects its three hyperscale customers to deploy 1 million AI chips in networked clusters by 2027, adding that it estimates an addressable market of $60 billion to $90 billion. Further, Broadcom is now working with four other potential customers to develop their own custom AI chips.
What Is the Forecast for AVGO Stock?
On Wednesday, Daiwa analyst Louis Miscioscia upgraded Broadcom stock to Buy from Outperform but lowered the price target to $225 from $275. The analyst's upgrade is based on four 'strong drivers' for AVGO this year and in the times ahead. These four drivers are demand for the company's ASIC processors, strength in the networking business, contribution from the VMware acquisition, and the core semiconductor business, which is nearing a rebound after two weak years.
The 5-star analyst views the pullback in AVGO stock from the December high as an attractive buying opportunity.
Overall, Wall Street has a Strong Buy consensus rating on Broadcom stock based on 23 Buys versus two Hold recommendations. The average AVGO stock price target of $250.90 implies 71.5% upside potential.
See more AVGO analyst ratings
Palantir Technologies (NASDAQ:PLTR)
Palantir Technologies stock has rallied 229% over the past year, driven by the data analytics company's strong financials and solid AI tailwinds. However, concerns about the impact of the Trump administration's spending cuts on the company's government business and elevated valuation have been weighing on PLTR stock.
The company has delivered solid growth rates across its commercial and government businesses in recent quarters. That said, several analysts are concerned about whether Palantir can maintain this momentum amid macro headwinds and tariff wars. Moreover, significant insider selling has also added to investors' woes.
Is PLTR Stock a Buy, Sell, or Hold?
Recently, Jefferies analyst Brent Thill reaffirmed a Sell rating on Palantir Technologies stock with a price target of $60. The 4-star analyst was encouraged by the ROI (return on investment) case studies presented by the company at its sixth Artificial Intelligence Platform (AIP) customer event and acknowledged its role in helping transform businesses.
However, Thill contends that the optimism about the company is already baked into its valuation. With a P/E (price-to-earnings) multiple of 45x 2026 earnings, the analyst noted that PLTR is the most expensive stock in Jefferies' coverage. He argued that while Palantir's fundamentals have been solid, the stock's valuation remains the biggest concern. He also highlighted notable selling of PLTR stock by insiders.
Wall Street has a Hold consensus rating on PLTR stock based on four Buys, 11 Holds, and four Sell recommendations. At $92, the average Palantir stock price target implies 24.3% upside potential.
See more PLTR analyst ratings
Conclusion
Wall Street is highly bullish on Microsoft and Broadcom stocks but sidelined on Palantir stock. Analysts see higher upside potential in AVGO stock than in the other two tech stocks. Despite the tariff troubles and ongoing macro uncertainties, analysts remain upbeat about the demand for Broadcom's custom AI chips and the momentum in its infrastructure software business.
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