Best Tech Stock To Buy

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Best Tech Stock To Buy

The Best Tech Stock To Buy For Next 5 Years

Microsoft (MSFT) is one of the best tech stocks you can buy and hold for the next 5 years. It's already a well-known brand in the tech space, and buying it can help you benefit from the next industrial revolution.

There are many small-cap AI stocks which can give you exposure to the AI boom. But we all know that buying small-cap stocks also comes with a higher degree of risk.

Microsoft Stock Up By 150% In Last 5 Years

So, when there are good options available like Microsoft (MSFT), why go for riskier ones? To give you some perspective, Microsoft (MSFT) has gained 150% upside in the last 5 years.

In the last 5 years, the S&P 500 has only given a return of 108%. So by picking the Microsoft (MSFT) stock, you could have outperformed the US stock market by a great margin.

According to analysts, Microsoft (MSFT) stock can easily beat the S&P 500 index in the next 5 years. The company has strong cash flow and is already an established player in the tech field.

But the best part is that Microsoft (MSFT) stock now also gives you exposure to the AI field. There's the Microsoft Co-Pilot and the Azure cloud computing business, which continues to grow at a fast pace.

key catalyst for Microsoft (MSFT) is its Azure enterprise cloud business. The higher demand for the AI cloud services has skyrocketed the company's revenue by almost 26% y/y in the last quarter.

Also, the total revenue of Microsoft (MSFT) has increased by 18% and reached a total of $78 billion. So, as far as the revenue and margins are concerned, Microsoft (MSFT) is in a very good spot.

Another thing to note here is that the data centre capacity of Microsoft is still not enough to cater to all the demand. In other words, Microsoft is leaving money on the table!

According to analysts, Microsoft's earnings will grow by 13.5% on an annual basis in the next few years. So, Microsoft stock can easily beat the S&P 500 index in the coming years.

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