Analyst Explains Why He Likes Microsoft (MSFT) – Highlights AI an ‘Unbelievable’ Growth Catalyst

We recently published Analysts Are Talking About These 10 Stocks as AI Investments Continue to Grow. Microsoft Corporation (NASDAQ:MSFT) is one of the stocks analysts were recently talking about.

Joseph Shaposhnik from Rainwater Equity explained in a latest program on Schwab Network that MSFT is among the best names to benefit from AI. Here is how he made the case of the software giant:

“We’ve owned Microsoft Corp (NASDAQ:MSFT) because it certainly is one of the most recurring revenue businesses on Earth and clearly is benefiting and is really in the catbird seat when it comes to benefiting from AI. It is using all of the technology that AI has enabled to improve its products, reduce its costs, and obviously grow substantially on the Azure side of their business. So we think Microsoft will continue to be able to add innovations and co-pilot like products to its suite, price up its product and continue to grow its unit volumes on the Microsoft 365 side. What is unbelievable is I don’t know anybody that doesn’t have Microsoft 365 or Office and yet Micr Microsoft Corp (NASDAQ:MSFT) osoft is growing its units and seat count at 6 to 8% a year despite the fact that almost everybody on Earth has access to it, but clearly there’s still opportunity to access individuals that are not subscribers yet. So Microsoft is growing its customer base. It’s growing its prices. It’s increasing prices over the years as it adds innovation and it is obviously clearly a huge AI beneficiary.”

Image by Tawanda Razika from Pixabay

Brown Advisory Large-Cap Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT), a global leader in software and cloud services, saw its shares trade higher in the second quarter following an earnings report and guidance update that exceeded consensus expectations. The company delivered strong performance across all business segments, with particularly robust growth in both core and AI-related Azure services. Management’s outlook for Azure remains especially positive, citing rising customer demand for AI solutions.”

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