Microsoft (MSFT) Announces $23 Billion Investment Plan, Morgan Stanley Reiterates "Buy" Rating

Microsoft Corporation (NASDAQ:MSFT) is one of the 15 best AI stocks to watch in December 2025.

Accelerating its global AI push, Microsoft Corporation (NASDAQ:MSFT) announced a $23 billion investment plan on December 9, 2025. A $17.5 billion investment leads the plan in India alone, its largest commitment in Asia. The company’s CEO, Satya Nadella, believes the four-year plan, starting in 2026, will see the construction of the country’s largest cloud computing presence. This includes a new hyperscale data center in Hyderabad and expansions in Chennai and Pune. Supporting India’s “AI-First future,” the company will double its pledge to train 20 million Indians in AI skills by 2030 through this initiative.

Microsoft Corporation (NASDAQ:MSFT)’s investment plan extends to Canada, where over $5.42 billion will be invested in new cloud capacity over the next two years. Deployments are expected in the second half of 2026. Furthermore, its partnership with Canadian AI startup Cohere will help the company deliver advanced AI models on Azure. Together, these moves reflect the company’s multi-regional cloud leadership.

Meanwhile, on December 8, 2025, Microsoft Corporation (NASDAQ:MSFT) continues to draw analyst attention, as Morgan Stanley’s Keith Weiss reiterated a “Buy” rating with a $650 price target. The analyst’s bullish stance reflects price increases for Microsoft 365, AI-driven upgrades, and Copilot adoption. On that bullish note, Weiss projects $2-$6 billion in incremental revenue from FY27-FY29.

Additionally, on December 2, 2025, Microsoft Corporation (NASDAQ:MSFT) announced a quarterly dividend of $0.91 per share, payable on March 12, 2026. This demonstrates the company’s commitment to shareholder returns despite aggressive AI investments.

With its Azure, Microsoft 365, and AI platforms, Microsoft Corporation (NASDAQ:MSFT) delivers cloud, AI, software, and computing solutions globally.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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