With the demand for artificial intelligence in nearly all facets continuing to surge, investors are hoping to find the next big AI stock for 2025 investments. Microsoft (MSFT) has emerged as a key AI stock in 2025, especially amongst the Magnificent-7 US stocks. The company has already made many key moves in artificial intelligence in the past year, including significant investments. These investments could help the company’s stock value boom in 2025, sparking profits for investors.
With an influx of investments into the continually emerging AI sector, Microsoft (MSFT) has gotten a $650 price target as analysts are projecting a historic 2025. Bernstein, Citi, and Piper Sandler have all positively reworked their projections for the company. Additionally, the company has continued to spend big on artificial intelligence, as there are hopes that the investments will pay off.
Last week the company announced two substantial funding measures. First, they are set to invest $80 billion into the development of data centers in the United States this year. Secondly, they putting $3 billion into the Indian workforce market. The development will see the company greatly invest in the nation’s talent pool.
Morgan Stanley Says Microsoft (MSFT) Will Be a Top AI Stock This Year
Morgan Stanley analysts see Microsoft as the likely top beneficiary of the increase in AI spending expected from companies that are looking to capitalize on the AI tech surge. Microsoft is seen as “the best-positioned franchise to gain from an improving spending backdrop,” said Morgan Stanley analyst Keith Weiss. As a result, the company received a buy rating from the analyst.
Microsoft will publish its December quarter earnings after the market closes on Jan. 29, with analysts looking for overall revenues of $68.84 billion and Intelligent cloud revenues, which includes Microsoft’s cloud product Azure, of around $28.1 billion. “We still expect Azure growth to accelerate from H1 (in the second half of the financial year] as our capital investments create an increase in available AI capacity to serve more of the growing demand,” Microsoft finance chief Amy Hood told investors in October. A positive earnings report will likely help Microsoft’s stock spark its slow start to 2025 and set it ahead of other Mag-7 members in the AI race.
