Microsoft Corporation (NASDAQ:
MSFT) is one of the
best big tech stocks to buy right now. On August 4, Brad Reback, an analyst at Stifel Nicolaus, reaffirmed his Buy recommendation on Microsoft with an unchanged price target of $650. This decision followed the company’s announcement of its fourth quarter results for 2025 (FY ends in June).
Microsoft ended fiscal 2025 with record numbers, driven by strong cloud and AI demand. Revenue grew 15% to more than $281 billion, while operating income rose 17%.
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A large part of Microsoft’s investment case rests on its cloud services growth, where the company delivered as expected. Cloud services were the main driver, with Microsoft Cloud generating $168 billion, up 23% from last year. Azure stood out with a 34% jump to $75 billion in revenue. To support this growth, Microsoft added more than two gigawatts of datacenter capacity over the past year.
AI-related services remain in high demand, and tools like Azure AI Foundry are helping customers develop and deploy custom AI solutions at scale.
Management expects fiscal 2026 to deliver another year of double-digit growth in both revenue and operating income, supported by ongoing cloud adoption, AI monetization, and a strong contracted backlog. Capital spending will stay high to keep pace with demand, with an emphasis on expanding datacenter capacity and improving efficiency.
Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
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.
