Brad Gerstner Says Microsoft (MSFT) 'Misunderstood' On AI Benefit

We recently published Top 10 Buzzing Stocks to Watch as Analysts Predict AI-Led Bull Market Will Continue. Microsoft Corporation (NASDAQ:MSFT) is one of the top buzzing stocks to watch.

Brad Gerstner, Altimeter Capital founder and CEO, said in a recent interview on CNBC that Microsoft is “misunderstood” when it comes to the benefits it’s getting from AI.

“We are investors in Microsoft Corp (NASDAQ:MSFT) and SoftBank in part for that reason. Okay. I think Microsoft Corp (NASDAQ:MSFT) in particular has really misunderstood how much they’re benefiting from the present moment. I’m going to have Satya on the BG2 pod coming up, and we’ll explore that in depth. But one of the things I would say on that is I think there’s still this underappreciation for the massive buildout that’s going on. If you think that’s going to occur, then SoftBank and Microsoft Corp (NASDAQ:MSFT) will continue to be big winners with those tailwinds.”

MSFT is up 25% so far this year.

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.