MSFT → $590.00 by Oct 2, 2026.

# TL;DR Microsoft is not a deep-value stock in the traditional sense, but I think the market may be underestimating its long-term earnings power. The central debate is: > Is Microsoft’s AI CapEx cycle creating future earnings power, or permanently weakening margins and free cash flow? The CapEx risk is real. Microsoft expects approximately **$190B of capital expenditures during calendar 2026**, and conventional free cash flow is currently being heavily reduced by infrastructure spending. However, that spending is occurring alongside …