Microsoft Corporation (MSFT): A Bull Case Theory

 We came across a bullish thesis on Microsoft Corporation on The Edge of Power’s Substack. In this article, we will summarize the bulls’ thesis on MSFT. Microsoft Corporation's share was trading at $507.03 as of September 25th. MSFT’s trailing and forward P/E were 37.17 and 32.79 respectively according to Yahoo Finance.

Microsoft’s AI strategy is transforming it into a critical global infrastructure player, with investments and partnerships positioning it far beyond a conventional software vendor. The adoption of Microsoft Copilot by the U.S. House of Representatives illustrates this shift, as AI moves from a productivity tool to essential infrastructure capable of supporting state-scale operations. Globally, Microsoft is deploying more than $56 billion in AI-focused projects, including sovereign cloud regions and supercomputing hubs in the U.K., Norway, and the U.S., with total CapEx for fiscal 2025 expected to approach $80 billion.

These initiatives combine renewable energy, GPU clusters, and strategic partnerships, creating a distributed, resilient infrastructure network that spans continents and aligns with sovereign priorities. In the Middle East, alliances with G42 in the UAE and sovereign cloud regions in Saudi Arabia extend Microsoft’s influence into fast-growing AI markets, effectively tying its growth to politically aligned, capital-rich projects and providing a strategic counterweight to Chinese technology influence. Despite this scale, the market has largely overlooked Microsoft’s moves, favoring smaller, unprofitable AI players.

The company’s embedded presence in government, sovereign partnerships, and global cloud infrastructure provides durable pricing power and revenue visibility, supporting a potential stock valuation of $600 by year-end. Beyond commercial returns, Microsoft’s investments represent soft power, shaping AI adoption, digital infrastructure, and geopolitical influence, while enabling NVIDIA and other tech partners to thrive.

With unmatched scale, innovation leadership, and embeddedness across governments and enterprises, Microsoft is building the global rails of the AI economy, offering long-term, resilient upside for investors and anchoring portfolios in a way smaller startups cannot replicate. Its global AI infrastructure positions the company as a quasi-state actor, securing both technological and strategic advantage for decades.

Previously we covered a bullish thesis on Microsoft Corporation (MSFT) by Ray Myers in May 2025, which highlighted the company’s strong enterprise software position, cloud growth via Azure, gaming expansion, and AI integration. The stock has appreciated approximately 11.9% since our coverage. The thesis still stands as Microsoft’s fundamentals remain robust. The Edge of Power shares a similar view but emphasizes Microsoft’s global AI infrastructure and geopolitical influence.

Microsoft Corporation is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 294 hedge fund portfolios held MSFT at the end of the second quarter which was 284 in the previous quarter. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.