Microsoft (NASDAQ:MSFT) is a Magnificent Seven stock that has done anything but disappoint. On a year-to-date basis, Microsoft stock is up more than 15%, and has overtaken the crown of the most valuable company by market capitalization in the world.
The market’s perspective on Microsoft is one that’s well-deserved. The company holds a near-monopoly on key software markets, and continues to hold a dominant position in the world of cloud computing and other key sectors as well.
However, the company’s investment into OpenAI and other AI-related initiatives have positioned the company as one of the top world-class AI plays in the market.
I don’t think that’s going to change anytime soon. Here’s more on why I think Microsoft stock deserves a full position in most investor portfolios right now.
$1 Billion Digital Ecosystem Initiative
Microsoft Corp. and G42 unveiled a $1 billion digital investment plan in Kenya. This comes in collaboration with the Ministry of Information, Communications, and the Digital Economy.
Key elements include a green data center for Microsoft Azure and initiatives for local AI model development, digital skills training, connectivity, and cloud services.
The agreement, slated to be signed during President William Ruto’s state visit to the U.S., signifies a milestone in African diplomatic relations.
In collaboration with local partners, G42 developed a cutting-edge data center in Olkaria, Kenya, powered by renewable geothermal energy and advanced water conservation technology.
This facility facilitated access to Microsoft Azure through a new East Africa Cloud Region, promoting cloud adoption and digital transformation in the region.
President William Samoei Ruto hailed the partnership as a step toward technological empowerment and shared prosperity, fostering digital leadership and innovation across Kenya, the USA, and the UAE.
Built-In AI PCs
Microsoft announced the launch of new computer models integrated with advanced AI features. These models will incorporate an updated version of Microsoft’s AI tool, Copilot, which operates across various Microsoft business products.
Based on OpenAI’s ChatGPT tool, Copilot facilitates smooth interaction and high-level writing tasks. As a significant investor in OpenAI, Microsoft supports ChatGPT’s operations with computing power and resources.
At Microsoft’s Seattle headquarters, CEO Satya Nadella unveiled new “AI-ready” computers featuring the Copilot+ system, touted as the fastest yet.
This announcement preceded the company’s annual developer conference, highlighting Microsoft’s ongoing integration of OpenAI’s technology.
The AI-based PCs are set for release on June 18, initially on Microsoft’s Surface models and later on partner PCs from Lenovo, Dell, Acer, and HP.
Microsoft Stock is a No-Brainer Buy
While Nvidia leads to AI investments, Microsoft’s approach offers diverse opportunities. Its Azure OpenAI and GitHub Copilot boast wide adoption.
Microsoft’s subscriber base surged, reaching 1.8 million in Q3 of fiscal 2024, signaling robust growth.
Microsoft stock emerges as a prime AI investment choice, leveraging its established history, scale, and growth prospects.
AI integration propels sales and enhances margins, with ample room for further adoption. Monitoring sustained cloud business growth and reception of AI-driven products like Copilot + PCs is crucial.
Strong adoption could speed up growth, positioning Microsoft as a high-reward opportunity, potentially leading global markets by 2035.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
