Microsoft: Buy In Time For AI Payoff
Summary
- We remain buy-rated on Microsoft, anticipating an AI payoff in 2025.
- Our belief is that Microsoft’s next leg of material outperformance will come from its heavy AI-related investments turning into AI monetization.
- We think the company is uniquely positioned to stand on that leg next year due to its positioning with Copilot sticky integration and better Azure growth as macro headwinds ease.
- We expect Microsoft to be an outperformer for 2025.
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We're maintaining our buy rating on Microsoft (NASDAQ:MSFT), but updating our investment thesis. The stock fell after reporting its Q4 results, showcasing a top and bottom beat but weaker Azure growth. For the quarter, the company reported a 15% Y/Y increase
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