Wall Street analysts are nearly unanimous in their optimism toward Microsoft Corp. (MSFT). Just ahead of its quarterly earnings release, Guggenheim upgraded the software giant from "neutral" to "buy."

Following this upgrade, nearly 99% of analysts tracked by Bloomberg now recommend buying Microsoft stock. Among the 73 analysts covering Microsoft, Hedgeye Risk Management stands as the sole holdout with a "neutral" rating—no analysts currently advise selling.

Guggenheim's upgrade reflects growing confidence in Microsoft's advantageous position in artificial intelligence (AI). Analyst John DiFucci noted in the report, "While investors struggle to distinguish AI winners from losers, Microsoft and other hyperscalers clearly belong to the winning camp."

Beyond AI-driven momentum for its Azure cloud business, Microsoft maintains a near-monopoly in productivity software through Office. This dominance enables direct monetization of AI services like Copilot bundled with its suite.

Microsoft shares rose 1.3% in premarket trading. Year-to-date, the stock has gained 24%, outpacing the Nasdaq 100's 21% rise.

Guggenheim set a $586 price target for Microsoft, implying 12% upside from recent closing levels.

The upgrade precedes Microsoft's October 29 Q1 earnings report, where investors will scrutinize AI growth trends and spending plans.