Morgan Stanley Maintains a Buy on Microsoft Corporation (MSFT) Stock

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, Morgan Stanley analyst Keith Weiss maintained a “Buy” rating on the company’s stock and set a price objective of $530.00. The analyst’s rating is backed by several factors demonstrating Microsoft Corporation (NASDAQ:MSFT)’s robust potential for sustained growth. After the impressive Q3 2025 results, investor sentiment improved, fueling the share price. Despite this, the analyst believes that the risk/reward ratio remains attractive.

Microsoft Corporation (NASDAQ:MSFT)’s valuation is supported by its leading position in the broader Generative AI space, which is projected to contribute to a durable mid-to-high teens total return profile, added the firm’s analyst. Furthermore, the analyst is confident that Microsoft Corporation (NASDAQ:MSFT)’s robust performance in the last quarter is expected to continue into Q4 2025. The company surpassed consensus expectations throughout all the business segments. Furthermore, Microsoft Corporation (NASDAQ:MSFT)’s disciplined operating expenses and the potential for continued low operating expense growth are projected to offset gross margin pressures, further aiding the company’s growth outlook, added Weiss. These factors continue to underscore the attractive investment opportunity.

Sands Capital, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Microsoft Corporation (NASDAQ:MSFT) is a leading global software and cloud infrastructure business. The company delivered better than-expected quarterly results, with a reacceleration in Azure growth as the key highlight. Demand for AI-related services remains strong, and Microsoft also benefited this quarter from sequential improvement in non-AI-related Azure revenue. We believe Microsoft is well positioned to facilitate and benefit from enterprise adoption of AI services, both at the infrastructure and application layers.”

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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Disclosure: None. This article is originally published at Insider Monkey.