- Market sentiment is up this week on the back of US-EU trade talks. However, here's a reason to pick Rolls Royce, Microsoft, and Tesla stocks.
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Stock markets are upbeat on the heels of renewed confidence over US-EU trade talks. However, Rolls Royce, Tesla and Microsoft stock prices have much more going on for them.
Rolls Royce
Rolls Royce stock price momentum is upbeat, with defence spending set to stay on an upward trajectory. The stock has gained 51% year-to-date, 13.89% in the last month and is up by 4.46% in the last five sessions. It has also broken its all-time high price multiple times in the process, resulting in a strong bullish sentiment. In addition, the company currently conducting a share buyback program which has also boosted investor confidence.
NATO Secretary-General recently stated that member states will likely agree to raise their defence spending to approach the 5% of GDP mark. That also favours the block’s leading defence contractors and adds support to Rolls Royce stock price. Most analysts predict modest upsides on Rolls Royce (LSE: RR.), resulting in a bullish outlook for the near and medium terms.
Rolls Royce Stock Price Prediction
Pivot: Rolls Royce stock price will likely pivot at 857p. The upside will prevail if action stays above that level. On the other hand, breaking below that level will favour the sellers to take control.
Resistance: Initial resistance at 868p. Second hurdle likely at 880p.
Support: First support likely to be at 851p. The upside narrative will be invalid below that level. Second support could come at 842p.
Microsoft
Microsoft stock price has been on a strong uptrend in recent weeks, primarily driven by strong growth in its cloud computing business. The company has invested heavily in AI data centres, and that business model is paying off. It spent about $46 billion in AI-related capex in 2024, which helped yield Azzure’s $24.1 billion revenue in Q1FY 2025, translating to 33% year-over-year growth.
Goldman Sachs analysts raised Microsoft stock price target to $550 from $480 a week ago. That implies a nearly 20% growth headroom from the $460 MSFT share price level as of this writing. In addition, at the Build 2025 event held from May 19-22 Microsoft (NASDAQ: MSFT) outlined plans to integrate “agentic AI” into its platforms, with support for the broader AI ecosystem, including partnerships with OpenAI and xAI’s Grok.
Also, it has upscaled its Copilot platform to have a greater visibility in everyday user interactions, as part of its mission to become an “AI agent factory.” In the near-term, Nvidia’s quarterly earnings results could have a significant impact on MSFT price due to the two company’s intertwined roles in the AI industry.
Microsoft Stock Price Prediction
Pivot: Microsoft stock price pivot mark likely at $458. The buyers will be in control above that level. Conversely, action below that level will likely trigger a downward momentum.
Resistance: First resistance at $462, above which the next barrier likely to be at $465.
Support: Primary support at $455. Going below that level will invalidate the upside narrative and an extended control by the sellers could take action lower to test $450.
Tesla
Tesla stock price rose by 6.2% on Tuesday, defying the latest reports of a decline in its European sales numbers for the fourth successive month. The latest upsurge is attributed to CEO Elon Musk’s social media posting in which he stated that he will henceforth refocus primarily on his businesses. That will likely diffise the negative publicity created by his involvement with DOGE and US President Donald Trump, which has partly contributed to reduced sales.
Also, the company’s focus on AI-driven self-driving vehicles has seen some of its investors pay lesser attention to its weak sales numbers. In some ways, Tesla is seen as a hybrid between a car manufacturer and a tech company.
The reality of its fully autonomous vehicles is taking shape as the June date for its pilot tests draws near. That has created a bullish undercurrent on its stock price. TD Cowen analysts this week reaffirmed their “Buy” rating on the stock, with a price target of $330. On the downside, however, UBS analysts have downgraded Tesla stock to a “sell rating” in their April outlook, with a price target of $190.
Tesla Stock Price Prediction
Pivot: TSLA price pivots at $364. Action above that level provides upside traction. Otherwise, the momentum could shift to the downside.
Resistance: First resistance likely at $368. Second one at $370.
Support: Initial support at $361. Action below that level will invalidate the upside thesis. Second support likely at $357.
