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Microsoft (MSFT) Stock Seen as Long-Term AI Winner, Says Evercore

Microsoft Corporation (NASDAQ:MSFT) is one of the Hot AI Stocks to Keep on Your Radar. One of the biggest analyst calls on Tuesday, September 9, was for Microsoft.

Evercore ISI reiterated the stock as “Outperform” with a  $625 price target, stating that investors should buy the dip.

“Regardless of the exact reason for the relative weakness over the last month, our view is that you own MSFT for the long-term compounding nature of the business, and on that front, we remain confident that the company is well positioned to monetize AI at both the infrastructure and agentic layer when looking out 3-5 years.”

Discussions with Microsoft’s investor relations team and investors have revealed no “material fundamental concerns on the horizon” coupled with Azure growth trends reinforced by ChatGPT inferencing and solid enterprise demand.

Pixabay/Public Domain

“Fundamental outlook remains strong. In speaking to investors on the road over the last few weeks and after catching up with IR, we don’t believe there are any material fundamental concerns on the horizon. Clearly, Azure expectations are more elevated after posting 39% y/y growth in F4Q (buy-side bogey still seems to have a ‘high-3 handle’), but the trends underpinning that growth – namely ChatGPT inferencing and solid enterprise demand – seem stable. Clearly, F1Q is a bit trickier on the enterprise bookings front, but we believe seeing Azure deliver mid-30% growth for FY26 appears to be a reasonable expectation. Further, with MSFT already guiding to flat op. margins for FY26, we anticipate that there is room for our/Street estimates to push higher. With shares at 31x NTM EPS vs. the S&P 500 at 22x, MSFT’s premium is below its 5-year average and we don’t see a lot of cracks in the fundamental bull narrative.”

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.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 Exciting AI Stocks to Watch Right Now

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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