DA Davidson recently highlighted Microsoft (MSFT) as a top choice to withstand an AI bubble burst due to its stake in OpenAI. Microsoft relies on OpenAI for 75% of its Azure AI revenue, showing a strong tie to the success of the AI company.

Analysts believe Microsoft is well-positioned to benefit from OpenAI’s growth and valuation, despite regulatory and concentration risks. The tech giant’s diversification in AI investments and access to OpenAI’s models give it an edge. Wall Street remains bullish on Microsoft’s stock despite potential risks.

Microsoft, founded in 1975, is a leading technology company known for Windows. It has become a significant player in cloud computing and AI. Despite a modest stock performance in the past year, MSFT’s investment in OpenAI has grown substantially, positioning it as a top AI company.

Microsoft’s financial results for Q1 2026 exceeded expectations, driven by cloud revenue growth. CEO Satya Nadella highlighted the demand for Microsoft’s AI platform and copilots, signaling continued heavy investments in AI capacity expansion.

48 analysts cover Microsoft, with a majority recommending a “Strong Buy.” Analyst Gil Luria set a price target of $650, anticipating significant upside potential. The consensus view is that Microsoft will emerge as a key player in AI, offering investors a promising opportunity for growth.

Read more at Yahoo Finance: Even If There Is an AI Bubble, Wall Street Says You Should Keep Buying This Magnificent 7 Stock