5 Stocks That Will Make You Rich Over the Next 3 Years

​2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 282

Microsoft Corporation (NASDAQ:MSFT) is one of the Stocks That Will Make You Rich Over the Next 3 Years. Recently, on June 24, Stifel lowered the price target on Microsoft Corporation (NASDAQ:MSFT) from $415 to $400 and maintained a Hold rating on the share.

The reduced price target is based on the growing concerns regarding margin pressures heading into 2027. Stifel expects Microsoft’s gross margins to compress around 450 basis points year-over-year to approximately 63%. As a result, the firm’s gross margins expectation is expected to land around 300 basis points below Wall Street’s current models.

​Stifel further highlighted that Azure remains the core issue as the cloud business is growing roughly three times faster than the rest of Microsoft, and that mix shift is costly. Stifel models 100 to 150 basis points of quarter-over-quarter Azure gross margin compression in fiscal 2027 due to accelerating capital expenditure. On the brighter side, Stifel expects operating expense efficiencies and declining headcount to partially offset the pressure.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.