We just covered Bill Gates’ 2026 Portfolio: Top 10 Stocks to Buy. Microsoft (NASDAQ:MSFT) ranks #4 (see the Bill Gates’ 2026 Portfolio: Top 5 Stocks to Buy).
Cracks have already started to appear in the MSFT‑OpenAI partnership, so let’s focus on Microsoft’s (NASDAQ:MSFT) broader strengths. With about 39% YoY growth, Azure stands out among competitors in the cloud industry, while the overall Intelligent Cloud segment has consistently posted mid‑to‑high‑20s percentage growth.
Microsoft can use its huge user base to monetize and benefit from its AI products. The company claims that over 80% of the Fortune 500 are using Microsoft AI technologies, and products like Microsoft 365 Copilot have seen rapid adoption across large enterprises, with Copilot deployments helping clients automate tasks and boost productivity. Analysts expect 12–15% annual revenue growth for Microsoft (NASDAQ:MSFT) over the next few years, led by cloud expansion, subscription services, and increasing AI monetization, while EPS is projected to grow at a low‑to‑mid‑teens pace as operating leverage improves across high‑margin software businesses. Microsoft (NASDAQ:MSFT)’s moat remains one of the strongest in tech, anchored by massive enterprise adoption of Windows, Office, Teams, and Azure, which creates extremely high switching costs and deep integration into corporate IT environments.
RiverPark Large Growth Fund explained in its fourth quarter 2025 investor letter why they continue to view MSFT as one of the most durable and strategically advantaged franchises in global technology despite the stock’s underperformance. (Click Here to Read The Letter In Detail)
Image by Tawanda Razika from Pixabay
While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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