Microsoft (NASDAQ:MSFT) has consistently outperformed the market, tripling its stock price over five years. Analysts rate it strong buy, projecting 12% upside for Microsoft stock with the highest price target set at $600. If Microsoft can hit this target, that could mean the stock could have a further 35% plus to run from here.

Let’s dive into the bull case behind Microsoft, and why this company could be poised to mint more millionaires moving forward.

Still The Most Valuable Company

Microsoft has continued to jockey with the likes of Apple (NASDAQ:AAPL) for the title of the world’s most valuable company by market capitalization for a long time. Recently, Nvidia (NASDAQ:NVDA) has emerged as a contender for this spot, actually moving past both companies to take the crown of late.

But at the time of writing, Microsoft has moved back into top spot, as investors focus on Microsoft’s fundamentals and relative growth prospects. The company’s 17% revenue growth in Q3 and 20% year-over-year surge in net income certainly doesn’t come close to Nvidia’s growth rate.

However, Microsoft is working with a much larger base, and current cash flows are considerably higher. On this basis alone, I think Microsoft likely deserves top spot, at least for now.

Companies like Nvidia have a lot to prove. And while other cash cow juggernauts like Apple will continue to nip at Microsoft’s heels, I can foresee Microsoft likely ending the year as the world’s most valuable company, barring some sort of additional growth surge through the last half the year.

All About Innovation

Microsoft’s history of innovation in the software and productivity world is well known. However, the company’s early shift toward adopting AI via its investments in key companies such as OpenAI has opened many investors’ eyes to how correct the company has been about future trends.

The company is leveraging this partnership via its integration of AI technology into Copilot AI. The company plans to integrate Copilot AI across its suite of products, growing its footprint further in a space that it already dominates.

With Microsoft’s 70% gross margin and forecast $11.77 in earnings per share, any sort of incremental benefit from this integration will likely be viewed very positively by Wall Street.

The company already stands to benefit greatly from its OpenAI investment, taking the majority of earnings until Microsoft earns back its initial investment. Thus, investors stand to benefit from a dual one-two punch of this initial early-stage investment.

Work Trend Index on AI in Workplaces

In other MSFT news, Microsoft and LinkedIn released the 2024 Work Trend Index, highlighting AI’s growing role in the workplace. The report, based on data from 31,000 users across 31 countries, reveals that AI usage at work has nearly doubled in six months.

Many leaders now prioritize hiring candidates with AI skills, yet concerns remain about lacking a clear AI vision. As employees introduce their own AI tools, companies face the challenge of transitioning from experimentation to achieving tangible business impacts.

The study showed 92% of Thai knowledge workers use AI at work, higher than the global average of 75%. This “Bring Your Own AI” trend risks strategic benefits and data security. Driven by high workloads, 91% of Thai leaders see AI as crucial for competitiveness, but 64% worry about lacking a clear implementation plan.

AI power usersexhibit unique usage patterns, reorienting their workdays and saving an average of 30 minutes daily.

In Thailand, 86% start and end their day with AI, but only 45% experiment with AI in new scenarios, lower than the global 68%. Additionally, just 28% of Thai users receive AI updates from their teams, and only 22% get AI training, below the global averages of 40% and 42%, respectively.

The Bottom Line on Microsoft Stock

There are simply few better AI plays in the market right now. Aside from Microsoft’s sizable investments in AI and its product integrations on this front, the company remains a cloud behemoth.

Its core software business will continue to provide steady and growing cash flows over time. So, even if this whole AI thing turns out to be a flash in the pan, this is a stock to own long-term. I like that setup a lot.

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.