4. Microsoft (NASDAQ:MSFT)
Gates Foundation Stake Value: $3.72 Billion
Cracks have already started to appear in the MSFT‑OpenAI partnership, so let’s focus on Microsoft (NASDAQ:MSFT)’s broader strengths. With about 39% YoY growth, Azure stands out among competitors in the cloud industry while the overall Intelligent Cloud segment has consistently posted mid‑to‑high‑20s percentage growth.
Microsoft can use its huge user base to monetize and benefit from its AI products. The company claims over 80% of the Fortune 500 are using Microsoft AI technologies, and products like Microsoft 365 Copilot have seen rapid adoption across large enterprises, with Copilot deployments helping clients automate tasks and boost productivity. Analysts expect 12–15% annual revenue growth for Microsoft (NASDAQ:MSFT) over the next few years, led by cloud expansion, subscription services, and increasing AI monetization, while EPS is projected to grow at a low‑to‑mid‑teens pace as operating leverage improves across high‑margin software businesses. Microsoft (NASDAQ:MSFT)’s moat remains one of the strongest in tech, anchored by massive enterprise adoption of Windows, Office, Teams, and Azure, which creates extremely high switching costs and deep integration into corporate IT environments.
RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT): MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. Operating margin expanded by roughly 240 basis points year-over-year, and EPS modestly exceeded expectations. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. In addition, capital expenditures were materially higher than anticipated at $34.9 billion for the quarter, and full-year fiscal 2026 CapEx expectations increased meaningfully.
We continue to view Microsoft as one of the most durable and strategically advantaged franchises in global technology. Azure’s growth at scale remains the strongest among hyperscalers, supported by robust remaining performance obligations of approximately $392 billion, up more than 50% year-over-year, providing strong multi-year revenue visibility. While elevated capital investment and OpenAI-related expenses may pressure near-term margins, these investments are reinforcing Microsoft’s leadership across cloud infrastructure and the application layer, including accelerating adoption of Copilot offerings. With unmatched enterprise relationships, expanding AI monetization, and disciplined execution, we believe Microsoft remains well positioned to compound earnings and free cash flow over the long term.”
