Analyst Explains Why Microsoft (MSFT) Has a Lead in Enterprise

We recently published 10 Trending Stocks This Week. Microsoft Corporation (NASDAQ:MSFT) is one of the trending stocks this week.

Mike Fey, Co-Founder & CEO of Island, said in a recent program on CNBC that Microsoft has a lead in enterprise and discussed the company’s AI capability.

“The best for enterprise right now. It is hard to not support Microsoft Corp (NASDAQ:MSFT), you know, given they started with that concept. Most of the other AI players started on the consumer side and are now saying, look at what we can do in the enterprise. So Microsoft Corp (NASDAQ:MSFT) has a lead in the understanding of the enterprise. But if you look at ChatGPT and some of the other ones like Perplexity coming up, the tech is really good. So, it’ll be interesting to see that play out, but for the moment, enterprise Salesforce, enterprise access, enterprise contracts, you know, Microsoft Corp (NASDAQ:MSFT) in a good spot.”

Middle Coast Investing stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its third quarter 2025 investor letter:

“Big tech companies play in and are obviously affected by AI. We own Amazon (AMZN), Apple (AAPL), and a small position of Microsoft Corporation (NASDAQ:MSFT); of those, Microsoft has been seen as a winner due to its association with OpenAI. But really, the story seems to be that Microsoft’s Azure is gaining ground on Amazon Web services. AI is the source of demand driving the continued growth.”

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.