Will AI Disruption Crush Microsoft (MSFT)?

We just covered the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. Microsoft Corporation (NASDAQ:MSFT) ranks #6 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner).

Altimeter Capital’s Stake: $617,752,974

MSFT bears believe the company’s business is under threat amid AI disruption. But some analysts think the company can actually thrive while other SaaS companies get crushed. Why? MSFT can easily shift from a per-seat pricing model to a per-workload model while sitting on one of the largest enterprise distribution networks in the world. The company has over 450 million commercial users embedded across email, documents, and workflows. That gives it direct access to enterprise data—the key input that makes AI useful. At the same time, over 3.7 million businesses rely on its software, while nearly 486,000 organizations run on Azure, including 85% of the Fortune 500. This means Microsoft has a strong ecosystem that protects it from AI disruption. Even if AI reduces the number of software seats, Microsoft can monetize higher usage through Copilot, automation, and cloud compute.

Microsoft is also foraying into the chip segment to cut its reliance on outsiders. Its Maia 200 AI accelerator chip is designed to run large-scale AI workloads inside Microsoft data centers, while the Cobalt 200 CPU is aimed at improving general cloud computing efficiency on Azure. Together, these custom chips reduce dependence on external suppliers and improve long-term cost control, performance, and scalability.

Mar Vista U.S. Quality Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:

Microsoft remains a top portfolio holding, supported by its financial strength, diversified revenue streams, and broad customer base, all of which provide resilience. We believe Microsoft should be well positioned to generate….” (Click Here To Read The Letter in Detail)

Photo by Microsoft 365 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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