Morgan Stanley Reaffirms Overweight Rating on Microsoft (MSFT), Names it GenAI Leader

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. On October 9, Morgan Stanley reaffirmed an “Overweight” rating on Microsoft Corporation (NASDAQ:MSFT) stock, noting that the company’s valuation is still at a discount to peers despite recent market outperformance. The analysts told investors that Microsoft is the leading beneficiary of generative AI (GenAI) spend, outpacing other major technology vendors by a significant margin. The insights were derived from the bank’s latest CIO survey (Q3 2025).

Morgan Stanley found that Microsoft is best positioned to capture incremental share of GenAI spend and IT budgets as workloads move to the cloud. This is supported by deep software integrations, a vast ecosystem, and major ongoing investments in AI infrastructure. In the survey, 33% of chief information officers (CIOs) expect Microsoft to gain the largest incremental share of GenAI spending next year. This is more than double the next-highest vendor; this figure rises to 37% over the next three years.​ Microsoft is also the top “IT wallet share gainer,” with a net 42% of CIOs expecting the tech giant to gain budget share – up from 41% in the previous survey.​

Microsoft Corporation (NASDAQ:MSFT) is a global technology company. It develops and sells software, cloud services, hardware, and enterprise solutions. Its flagship products include the Windows operating system, Office, Azure, and LinkedIn.

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