Should You Buy Microsoft Corporation (MSFT)’s Shares?

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best Stocks to Buy in 2026 According to Billionaire D.E. Shaw.

Microsoft Corporation (NASDAQ:MSFT)’s shares are down by 22% over the past year and by 18% year-to-date. Several analysts have discussed the firm in July. For instance, DA Davidson kept a Buy rating on July 6th, while Wolfe Research kept a Buy rating and a $525 share price target on the 5th. Then, on July 7th, BMO Capital cut Microsoft Corporation (NASDAQ:MSFT)’s share price target to $500 from $515 and kept an Outperform rating on the shares. The technology company’s second quarter and cloud computing business were on the financial firm’s mind as it remarked that Microsoft Corporation (NASDAQ:MSFT) should deliver a small upside for its Azure business in the upcoming second quarter earnings.

Bloomberg was out with a major report for Microsoft Corporation (NASDAQ:MSFT) on July 6th, when it outlined that it expected the firm to cut 3,200 jobs in its Xbox division to streamline operations and divest game development studios.

Should You Buy Microsoft Corporation (MSFT)’s Shares?

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RiverPark Large Growth Fund discussed Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:

“Microsoft Corporation: MSFT was the portfolio’s largest detractor for the quarter due to various headwinds. In January, Microsoft reported its fiscal Q2 2026 results with strong operational metrics, revenue up 17% year-over-year, Azure up 39%, and RPO of $392 billion up more than 50% year-over-year, but management’s guidance for a sequential deceleration in Azure growth and sharply elevated capital expenditures weighed on investor sentiment. This was then compounded by the sector-wide reassessment of hyperscaler capex cycles in February following Alphabet’s $175–$185 billion and Amazon’s $200 billion 2026 spending announcements. The combination of slowing near-term growth expectations and rising capital intensity drove multiple compression across the entire cloud software and infrastructure group.”

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 the cheapest AI stock.

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