MSFT Alert: Buy Microsoft Stock Before the Next Move Higher


  • Microsoft (MSFT) continues to push the boundaries of AI and remains a leader in the field.
  • The company is also seeing big growth in its Azure cloud computing segment and Xbox video game unit.
  • Wall Street analysts currently rate Microsoft stock a strong buy.
Microsoft Stock - MSFT Alert: Buy Microsoft Stock Before the Next Move Higher

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While it has traded sideways over the past few months, it likely won’t be long before Microsoft (NASDAQ:MSFT) stock makes its next move higher. So far this year, Microsoft stock has risen 13%, which is only slightly better than the 12% increase in the benchmark S&P 500 index.

The shares have stagnated after Microsoft achieved a $3 trillion market capitalization in late January, surpassing Apple (NASDAQ:AAPL) to become the world’s biggest publicly traded company. With its leadership in AI, Microsoft stock is likely to gain momentum in the near-term.

AI Features

Microsoft recently teased several new artificial intelligence tools for use with its Windows operating system and its cloud-computing infrastructure. Analysts expect more details at Microsoft’s annual Build conference at the end of May.

Media reports say that Microsoft plans to announce a new advanced Paste feature for Windows that will allow people to run AI models directly on their personal computer (PC) rather than send data to the cloud.

Earlier this year, Microsoft introduced new Surface PCs that feature a Copilot button for quick access to the company’s AI chatbot. Microsoft will discuss Windows apps accessing new AI features at the Build conference. The company plans to introduce AI safety features to reduce chatbot security risks and improve the Copilot chatbot.

These are just the latest ways in which Microsoft is cementing its global leadership in the red-hot field of AI. The company also continues to have a close relationship with privately held OpenAI, which it has invested more than $10 billion into.

OpenAI recently announced new AI plans of its own, including an artificial intelligence-powered search engine aimed at competing against Google and a partnership with social media company Reddit (NYSE:RDDT).

Growth on All Fronts

Microsoft continues to report financial results that show growth on all fronts at the company. In particular, the company’s first-quarter print showed accelerating growth in cloud-computing.

The company’s Intelligent Cloud segment, including the Azure public cloud, earned $26.71 billion in revenue during the quarter. That was up 21% from the previous year and ahead of the $26.26 billion expected among analysts. Revenue from Azure alone grew 31% from a year ago.

Other highlights from the earnings report include revenue from the Xbox video game unit rising 62% year-over-year due to a lift from its $68 billion acquisition of Activision Blizzard, which makes popular game titles such as “Call of Duty.”

Sales of Windows licenses to device makers rose 11%. During the quarter, Microsoft began selling access to the Copilot chatbot for small businesses with Microsoft 365 productivity software subscriptions.

The strong earnings and growth across multiple business segments is why 33 professional analysts currently rate MSFT stock a strong buy with a median price target of $491.56 per share, which is 17% higher than where the shares currently trade.

Buy Microsoft Stock

Microsoft stock hasn’t lit the world on fire lately. The stock will likely move higher as AI technologies, cloud-computing and video games contribute to its growth.

Analysts remain bullish on Microsoft and its future outlook, and the company’s strength has led it to become the world’s most valuable publicly traded company. Investors should keep the faith. Microsoft stock is a buy.

On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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