Microsoft (NASDAQ:MSFT) has been a top stock pick. The company turned a $1,000 investment a decade ago into more than $11,000, even with its dips along the way. This has proven to be a buy-and-hold stock that’s worth keeping in the portfolio for the long-term. Furthermore, with various AI catalysts losing the company’s Azure cloud division’s growth, and its diverse cloud approach which offers both on-premise cloud options that can dominate the market, there’s a lot to like about how Microsoft stock is positioned for continued long-term gains.

Last year, Microsoft stock also exceeded market expectations with its 17% revenue growth and 20% rise in net income. This was mostly driven by AI advancements and cloud computing. Strong results make the stock a good opportunity to own.

Partnership with Lumen Technologies

Lumen Technologies (NYSE:LUMN) and Microsoft partnered to enhance Lumen’s digital transformation using Microsoft Cloud. Microsoft selected Lumen to expand network capacity for its AI-driven data centers. This collaboration supports Microsoft’s AI tools and infrastructure. Lumen’s Private Connectivity Fabric provides the necessary network capacity and stability to meet rising data demands.

Erin Chapple of Microsoft highlighted AI’s transformative role in business and daily life, emphasizing their focus on network infrastructure with Lumen. Lumen’s network supports Azure’s diverse workloads, from cloud-native computing to AI. Kate Johnson of Lumen stressed their network’s capacity to meet Microsoft’s ambitious AI goals, offering unmatched coverage and digital flexibility essential for an AI-driven future.

Changes in Windows

Microsoft is pushing for changes to Windows following a CrowdStrike (NASDAQ:CRWD) update glitch that took 8.5 million PCs offline. The company has suggested it will restrict security vendors from accessing the Windows kernel to boost system resilience. CrowdStrike’s software, running at this critical level, caused widespread issues when it malfunctioned. Unlike Microsoft’s past efforts, Apple (NASDAQ:AAPL) has successfully restricted kernel access in macOS.

The company is revisiting restrictions on kernel-level access in Windows following recent issues with CrowdStrike. John Cable, a VP at Microsoft, emphasized the need for enhanced resilience and closer collaboration with security partners. While specific updates were not detailed, he highlighted innovations like VBS enclaves and Azure Attestation as steps toward improved security.

John Cable highlighted that modern Zero Trust practices can enhance development without relying on kernel access. He indicated ongoing efforts to strengthen Windows and collaborate with the security community. Although Microsoft can’t restrict Windows like Apple due to regulatory concerns, the idea of tighter control may spark debate. Cloudflare’s CEO has cautioned about potential impacts, suggesting Microsoft must balance security with vendor needs.

I’m Still Bullish on MSFT Stock

Microsoft investors have outperformed the market by a wide margin wins the company’s IPO, and there are numerous reasons why this is likely to be the case moving forward.

With strong cash flow generation courtesy of the company’s core software business, and growth ahead for Microsoft’s Azure division (with its various AI integrations underway), this is a growth stock with plenty to prove long-term. It’s my view that buying Microsoft stock on dips and holding long-term is likely to be a strategy that pays off for investors big time.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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.