Analyst Says Microsoft (MSFT) 'Last of' Undervalued AI Stocks

We recently published Top 10 Trending Stocks Everyone’s Watching in Q4. Microsoft Corporation (NASDAQ:MSFT) is one of the trending stocks everyone's watching.

Morningstar’s Dave Sekera said in a recent program on Schwab Network that Microsoft is the last undervalued big tech name.

“A number of them are starting to get back into overvalued territory, you know, once again, we still see value there. I mean, names like Microsoft Corp (NASDAQ:MSFT) is still a four-star rated stock, so we still think that one’s undervalued. It’s pretty much like the last of the AI plays that’s undervalued,” he said.

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.

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

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