Microsoft (MSFT) Maintains Cloud Growth Momentum, Stifel Keeps Buy Rating

Microsoft Corporation (NASDAQ:MSFT) is one of the best big tech stocks to buy right now. On August 4, Brad Reback, an analyst at Stifel Nicolaus, reaffirmed his Buy recommendation on Microsoft with an unchanged price target of $650. This decision followed the company’s announcement of its fourth quarter results for 2025 (FY ends in June).

Microsoft ended fiscal 2025 with record numbers, driven by strong cloud and AI demand. Revenue grew 15% to more than $281 billion, while operating income rose 17%.

Microsoft (MSFT) Maintains Cloud Growth Momentum, Stifel Keeps Buy Rating

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A large part of Microsoft’s investment case rests on its cloud services growth, where the company delivered as expected. Cloud services were the main driver, with Microsoft Cloud generating $168 billion, up 23% from last year. Azure stood out with a 34% jump to $75 billion in revenue. To support this growth, Microsoft added more than two gigawatts of datacenter capacity over the past year.

AI-related services remain in high demand, and tools like Azure AI Foundry are helping customers develop and deploy custom AI solutions at scale.

Management expects fiscal 2026 to deliver another year of double-digit growth in both revenue and operating income, supported by ongoing cloud adoption, AI monetization, and a strong contracted backlog. Capital spending will stay high to keep pace with demand, with an emphasis on expanding datacenter capacity and improving efficiency.

Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.

While we acknowledge the potential of MSFT to grow, 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 this cheapest AI stock.

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