Graham Stephan Stock Portfolio: Top 5 Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) features on our list of the top stock picks of Graham Stephan because it is a popular holding in the index funds that Stephan often asks his followers to buy and hold. Hedge funds are also bullish on the stock. The primary operational reason investors are buying Microsoft is the sheer velocity of the cloud architecture, which continues to beat Wall Street expectations. In Q3 2026, Microsoft reported total revenue of $82.9 billion, a powerful 18% year-over-year increase that beat analyst projections of $81.29 billion. Microsoft Cloud revenue reached $54.5 billion, expanding 29% year-on-year.

Underpinning this, Microsoft Corporation (NASDAQ:MSFT) Azure and other cloud services grew by an outstanding 40%, proving that corporations are shifting more workloads to the Microsoft ecosystem. Net income jumped 23% to $31.8 billion, delivering a diluted GAAP EPS of $4.27, crushing the consensus estimate of $4.05. CEO Satya Nadella has revealed that Microsoft’s AI business has surpassed a $37 billion Annualized Revenue Run Rate (ARR), skyrocketing 123% year-over-year. Paid Microsoft 365 Copilot seats climbed to over 20 million, marking a 33% sequential jump from the 15 million reported just three months prior. Commercial Remaining Performance Obligations surged 99% to $627 billion.