Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best AI Stocks to Buy for the Next 10 Years. On March 11, RBC Capital reiterated its Outperform rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $640 on the stock.
Earlier, on March 5, Jefferies also reiterated its Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $675 after meeting with the company’s head of investor relations. Jefferies pointed to the company’s end-to-end platform that combines Azure and Microsoft 365 (M365), which helps bring enterprise AI spending together. Microsoft Corporation (NASDAQ:MSFT) already supports more than 450 million paid M365 users with its enterprise distribution network.
Jefferies highlighted that AI is increasing the total addressable market for M365. The firm also noted that AI margins are improving faster than cloud did at a similar stage. Additionally, Jefferies pointed out that Microsoft Corporation (NASDAQ:MSFT) can make money from its infrastructure no matter which AI model or agent wins. The research firm said that the company has a model-agnostic strategy, focusing on controlling the platform where models are deployed, governed, and monetized.
According to Jefferies, Microsoft Corporation’s (NASDAQ:MSFT) full-stack AI solution, including governance, is attractive to chief information officers. The firm also highlighted that Microsoft Corporation (NASDAQ:MSFT) is trading at about 21 times its expected EPS for fiscal year 2027, which is lower than its 10-year average of 23.5 times.
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. The company develops and markets software, services, and hardware.
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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Read More: RBC Capital and Jefferies Keep Bullish Ratings on Microsoft (MSFT)
