China Merchants Securities Begins Coverage on Microsoft (MSFT) Stock

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Invest in for the Next 5 Years. On September 10, China Merchants Securities began coverage on the company’s stock with a “Buy” rating and a price objective of $585.00. The firm noted Microsoft Corporation (NASDAQ:MSFT)’s robust position in the cloud infrastructure, along with AI capabilities, as key factors placing it to further penetrate the SaaS market.

Furthermore, the firm opines that Microsoft Corporation (NASDAQ:MSFT)’s flagship products, such as Windows and Office, remain highly embedded in businesses globally. The company’s trusted brand and extensive enterprise relationships support a significant customer base throughout industries for cloud migration. As per the firm, by embedding AI-powered features and offering integrated SaaS suites, Microsoft Corporation (NASDAQ:MSFT) can expand its offerings with its existing customers. The company closed FY 2025 with a strong quarter, characterized by Microsoft Cloud revenue reaching $46.7 billion, a rise of 27% YoY.

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

“Microsoft Corporation (NASDAQ:MSFT), a global leader in software and cloud services, saw its shares trade higher in the second quarter following an earnings report and guidance update that exceeded consensusThe expectations. The company delivered strong performance across all business segments, with particularly robust growth in both core and AI-related Azure services. Management’s outlook for Azure remains especially positive, citing rising customer demand for AI solutions.”

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.