Buy Microsoft Stock

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Buy Microsoft Stock

Why You Should Buy Microsoft Stock

Microsoft has changed a lot over the years. Today, Microsoft has embedded itself into cloud, AI, productivity, and everyday work. Also, analysts think the current valuation of Microsoft stock makes it a must-buy for long-term investors.

In the last fiscal year, Microsoft's revenue jumped by 18% and reached $331 billion. The operating income reached $155 billion, with a 21% increase. The recorded net income was $133.7 billion.

Microsoft's AI Revenue Is Rising

What's interesting is that Microsoft has also found a strong footing in the AI sector. Its revenue from the Azure and Intelligent Cloud segment has already crossed $100 billion annually. The available data shows that the AI business is growing at 123% y/y.

Also, the Microsoft 365 Copilot already has 30 million paid subscribers. This clearly highlights that Microsoft has found a growth engine in the form of AI.

The most interesting thing is that the trailing P/E of Microsoft is 28. This is lower than the 10Y average of 30. The forward P/E of Microsoft is 25, which is very reasonable.

All of this tells us that Microsoft stock is a good option for investors. Of course, it is not cheap, but that's a price one must pay for a high-growth company like Microsoft.

At the current valuations, Microsoft stock is a buy for long-term investors. For others, it is better to wait for a pullback to get an entry into Microsoft stock.

Analysts are already predicting higher spending on AI infrastructure. Amidst all of this, Microsoft is in a very good position with its Azure cloud computing platform. So, Microsoft's revenue will stay strong for the next 4-5 years because of this increased AI spending.

And let's not forget that Microsoft is a blue-chip stock. It was here before the AI and has already found a new growth engine in the AI sector. So, if you want to invest in AI without too much risk, Microsoft stock is a good option.

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