Microsoft (MSFT) Earnings Beat Expectations—Analysts See More Upside

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Investors Should Keep an Eye On. On July 31, TD Cowen analyst Derrick Wood reiterated their bullish stance on the stock, giving a “Buy” rating today. The firm’s optimism follows Microsoft’s earnings report on July 31st, highlighting strong performance and growth potential.

The tech giant reported impressive revenue growth in the fourth quarter, beating market expectations. Azure has been a major driver behind this revenue growth, having a notable increase in growth driven by both AI and non-AI workloads.

User engagement has also been increasing positively, as evident from the rising adoption of Microsoft’s Copilot. Wood also pointed out Microsoft’s data center capacity expansion and robust capital expenditures, together which have been driving Azure’s continued growth.

Microsoft (MSFT) Earnings Beat Expectations—Analysts See More Upside

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Management at Microsoft has also been optimistic about maintaining demand signals, resulting in an increased capital expenditure forecast. According to Woods, the company’s strong positioning in AI monetization and cloud infrastructure will help keep growth on track, reinforcing his confidence in the company.

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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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