Microsoft (MSFT) Maintains Strong AI Positioning Amid Hyperscaler Focus

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight rating on the stock with a $600.00 price target. The firm sees Microsoft as a top AI play, highlighting positive sentiment on Azure and Copilot.

It mentioned that it prefers hyperscalers and select vertical software names in the current backdrop. Microsoft and ServiceTitan serve as its top picks within the group.

In particular, Piper Sandler views MSFT as one of the most compelling pure-play beneficiaries of enterprise AI adoption today. Feedback from the respondents to the firm’s CIO survey from the second half of 2025 show a modest incrementally positive activity for both Azure and Copilot.

Amid this backdrop, we like the hyperscalers and select vertical software names. Our top picks are MSFT and TTAN as a result. We see Microsoft as perhaps the best pure-play on AI adoption today. Respondents to our 2H25 CIO survey were incrementally positive on both Azure and Copilot activity. We would be buyers on the pullback post-F2Q26 results.

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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