Is Microsoft (MSFT) The Best AI Stock According to Billionaire Ken Fisher?

We just covered Billionaire Ken Fisher’s Latest Portfolio: 10 Best AI Stocks to Buy. Microsoft Corp (NASDAQ:MSFT) ranks #3 (see the 5 Best AI Stocks to Buy).

Billionaire Ken Fisher’s Stake: $12.24 billion

Microsoft Corp (NASDAQ:MSFT)  shares are down 21% so far this year. Despite recent market skepticism about its AI narrative, Microsoft Azure rose 39% year over year in the most recently reported quarter. After the recent sell‑off, the stock now trades near 22 times trailing earnings and at about 21 times forward earnings, its cheapest valuation in roughly a decade.

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) can use its huge user base to monetize and benefit from its AI products. Microsoft (NASDAQ:MSFT) claims that 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. Microsoft’s (NASDAQ:MSFT) 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.

Magellan Global Fund said in its fourth quarter 2025 investor letter that AI stocks like MSFT will continue to be affected by shifting views on AI positioning in the short term. However, it believes all of the incumbent cloud providers as winners of the increased adoption of AI applications in the long term. Click here to read the full letter.

Photo by Microsoft Edge on Unsplash

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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