Microsoft Stock Is Down 27% From Its All-Time High. 2 Reasons It Could Double by 2030.
The software giant is better positioned for the agentic AI era than Wall Street thinks.
Overview
Microsoft (NASDAQ: MSFT) stock has fallen 27% from its all-time high, as Wall Street focuses on heavy capital spending to support artificial intelligence (AI) infrastructure. Yet Microsoft's deep enterprise relationships continue to drive solid demand across its productivity software, cloud, and Copilot platforms.
Microsoft's earnings per share nearly doubled over the last five years, and analysts currently project earnings growth of 16% annually in the next few years. That growth trajectory is enough for the stock to double by 2030. The stock is also trading at a discounted price-to-earnings (P/E) multiple to other hyperscalers, which could boost returns if it rerates at a higher multiple.
Details
Here are two reasons investors can expect Microsoft to meet those earnings growth estimates and deliver market-beating returns.
Source
Originally published at www.fool.com.