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Microsoft Stock in 2027: My Prediction Is That It Still Beats the Market

Microsoft looks like a good buy to me because it has evolved into a core AI platform business.

Microsoft Stock in 2027: My Prediction Is That It Still Beats the Market

Published August 24, 2026 · Category: Finance

Overview

These days, I see Microsoft (NASDAQ: MSFT) less as an old software giant and more as a core AI utility for the global economy, and that shift changes how I think about the stock. With Azure, the company's cloud platform, growing north of 40% and AI revenue already running at a $37 billion annual pace, I believe Microsoft still has what it needs to beat the market into 2027 and beyond.

Image source: Getty Images.

I start with the numbers only to understand the scale. In fiscal 2026 (ending June 30), Microsoft reported $331.8 billion in revenue, up 18%, and operating income of $155.2 billion, up 21%. Azure revenue surpassed $100 billion for the year, and in the most recent quarter, Azure and other cloud services jumped 43%, topping expectations. Those results tell me AI demand is showing up in actual sales and profits.

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.