Investor excitement over AI has propelled several stocks into the trillion-dollar club, with Nvidia and Broadcom standing out as top beneficiaries. While growth expectations for a trillion-dollar company are modest, it could surpass them. At the start of the decade, only two companies had market caps over $1 trillion, but now there are 10, fueled by the AI trend.

Microsoft is a standout stock pick among megacaps, with analysts expecting a 33% upside in its stock price. While Nvidia and Broadcom are also expected to climb, Microsoft offers a better investment opportunity with lower risk. Azure, Microsoft’s cloud business, is a key focus for AI investors and is growing rapidly, outpacing its competitors.

Microsoft’s diverse revenue streams, including Azure and its software business, are driving strong growth. With a focus on AI-powered features, Microsoft is attracting more users and increasing revenue per user. Analysts see potential upside for Microsoft in 2026, with shares trading at a lower earnings multiple compared to Nvidia and Broadcom.

Before buying Microsoft stock, consider the potential for growth and returns. While Microsoft is not among the 10 best stocks identified by The Motley Fool Stock Advisor team, it has the potential for significant returns. With a history of market-crushing outperformance, Microsoft could be a valuable addition to an investment portfolio.

Read more at Nasdaq: The Best Trillion-Dollar Stock to Buy for 2026, According to Wall Street