Microsoft’s stock needs a 41% increase to hit a $5 trillion market cap, with AI tools and cloud business driving growth. Analysts predict Microsoft could reach this milestone next year. Nvidia briefly crossed the $5 trillion mark, but concerns about AI bubble and infrastructure spending weigh on the stock.

Microsoft invested in OpenAI, leveraging AI tools across all business segments. Copilot, the chat-based AI assistant, is used by 90% of Fortune 500 companies. Microsoft’s Azure cloud demand exceeds supply, prompting plans to double data center capacity to support AI tools.

Microsoft’s commercial remaining performance obligations are at $392 billion, growing 51% YoY and surpassing revenue. Analysts forecast a 16% revenue jump this fiscal year. With a potential 20% revenue growth next year, Microsoft could achieve a $5 trillion market cap.

Analysts anticipate Microsoft’s growth accelerating in 2026, potentially reaching a $5 trillion market cap. Investors may consider adding Microsoft stock to their portfolio for healthy gains. Stock Advisor’s top 10 list excludes Microsoft, but historical recommendations have yielded significant returns.

Microsoft’s market cap is $3.6 trillion, needing a 41% appreciation to hit $5 trillion. Strong revenue growth and RPO indicate potential for surpassing expectations. Microsoft’s continued growth in AI tools and cloud computing positions it well for future success.

Read more at Yahoo Finance: Prediction: This Company Is All Set to Hit a $5 Trillion Market Cap in 2026 (Hint: It’s Not Nvidia)