How Microsoft Corporation (MSFT) Is Scaling AI Into Its Next Growth Engine

Microsoft Corporation (NASDAQ:MSFT) is one of the best Nancy Pelosi stocks to buy in 2026. On January 28, CEO Satya Nadella reiterated that Microsoft Corporation (NASDAQ:MSFT) is one of the beneficiaries of the AI expansion. Early investments in OpenAI and its own products and solutions have enabled the company to build an AI empire larger than some of its franchises.

How Microsoft Corporation (MSFT) Is Scaling AI Into Its Next Growth Engine

Photo by Matthew Manuel on Unsplash

The remarks come as the company delivered a 23% increase in net income to $30.9 billion for the three months ended December 2025. Revenue was up 17% to $81.3 billion, exceeding consensus estimates. The better-than-expected results came from capital expenditure, which increased 66% year over year to $37.5 billion, driven by a surge in data center spending as it seeks to capitalize on the AI boom.

Nadella has defended the significant spike in Capex, insisting it will be justified as the company’s technology is adopted by businesses. The executive remains committed to AI bets as Azure cloud computing continues to outstrip supply.

“We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises,” CEO Satya Nadella said in a statement.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops, licenses, and supports a wide range of software, hardware, and AI-powered services. Key offerings include Windows, Microsoft 365 productivity apps, Azure cloud services, LinkedIn, and Xbox gaming consoles.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks.

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