From Nasdaq: 2024-04-30 11:21:46

Tech giant Microsoft (MSFT) has seen exceptional growth, with a stock return of 895% in the last decade. Its diverse portfolio, including software, hardware, and cloud services, has led to strong revenue growth. In Q3 fiscal 2024, both revenue and earnings surpassed expectations, with Azure cloud driving growth.

Microsoft’s cloud platform, Azure, has been pivotal to its success. In Q3, Microsoft Cloud revenue rose by 23% year on year to $35.1 billion. The Intelligent Cloud segment’s revenue increased by 21%, reaching $26.7 billion, contributing significantly to Microsoft’s total revenue of $61.8 billion.

Analysts predict a 15.5% revenue and 20.4% earnings growth for Microsoft in fiscal year 2024. With AI integrated into its products, Microsoft’s dominant position and growth prospects justify its valuation. Wall Street analysts maintain a “buy” rating for MSFT, with a target price of $460 and an upside potential of 49.7%.

Microsoft stock continues to be a strong buy, with Bank of America and RBC Capital reiterating positive ratings. Microsoft’s focus on cloud capabilities and AI-driven growth potential has impressed analysts. With a competitive edge in AI and strategic partnerships, Microsoft remains a top choice among AI stocks for long-term investment.



Read more at Nasdaq: 1 Outstanding AI Stock to Buy Now and Hold Forever