Microsoft’s aggressive AI strategy drives long-term growth, with Azure cloud revenues up 27% in Q4 2025. Investments in AI infrastructure, like Azure OpenAI and GitHub Copilot, enhance productivity and customer engagement. CapEx hit $24.2 billion, projected to reach $30 billion in Q1 2026 to solidify Microsoft’s AI leadership.

Meta projects $66-$72 billion in 2025 AI CapEx, focusing on advertising efficiency within its social ecosystem. Alphabet increases 2025 spending to $85 billion to expand cloud and data infrastructure. Microsoft leads in enterprise-cloud integration, while Meta’s AI payoff is tied to advertising within its vast social network.

MSFT shares outperform industry and sector growth, trading at a forward P/S ratio of 11.49X with a Value Score of D. Zacks estimates fiscal 2026 earnings at $15.35 per share, indicating 12.54% YoY growth. Microsoft carries a Zacks Rank #2 (Buy) with strong growth potential.

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Read more at Nasdaq: MSFT Rides on AI Strategy: Can Rising CapEx Drive Future Growth?