Investors' Guide to AI Company Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Investment Surge: Many investors are actively buying shares of AI companies, reflecting strong market interest and confidence in the AI revolution, which could drive stock prices higher.
- Investment Strategy: Certified Financial Planner® Matt Frankel shares a framework that emphasizes the importance of adopting the right approach when investing in AI companies to ensure benefits from this trend while avoiding potential risks.
- Market Timing: Based on morning prices from June 11, 2026, investors need to monitor market dynamics to make timely investment decisions that maximize returns.
- Video Release: The video was published on June 12, 2026, aiming to provide practical advice and insights for investors to make informed choices in the rapidly evolving AI sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MSFT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 390.340
Low
500.00
Averages
631.36
High
678.00
Current: 390.340
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's AI Business Thrives Amid Low Valuation
- Significant AI Growth: In Q3 of fiscal 2026, Microsoft's AI business achieved an annual revenue run rate of $37 billion, growing 123% year-over-year, demonstrating strong market demand particularly in cloud computing and core product integration, thereby solidifying its leadership in the AI sector.
- Surge in Cloud Revenue: Azure's revenue increased by 40% year-over-year, reflecting robust demand for cloud services essential for processing and training AI workloads, which provides strong support for Microsoft's overall performance.
- Low Stock Valuation: Despite the impressive performance of its AI business, Microsoft's stock trades at a low cash flow valuation not seen since 2019, indicating a market underestimation of its future growth potential, which may present a buying opportunity for investors.
- Peer Comparison: Microsoft's valuation is comparable to Amazon's but significantly lower than Alphabet and Apple, suggesting that given its strong AI growth, there is reason to believe Microsoft's valuation could rebound, potentially offering capital appreciation for investors.
See More
Microsoft's Strong AI Growth Amidst Stock Decline Raises Buy Interest
- Stock Performance Decline: Microsoft's stock has fallen approximately 17% this year while the S&P 500 has risen about 7%, indicating a decline in market confidence and raising concerns among investors about its future performance.
- Significant AI Growth: In Q3 of fiscal 2026, Microsoft's Azure cloud revenue increased by 40% year-over-year, and its AI business saw a remarkable annual revenue growth rate of 123%, reflecting strong demand for AI infrastructure.
- Low Valuation: Microsoft's price-to-cash-from-operations valuation is at its lowest since 2019, suggesting that the stock is undervalued within the AI sector, potentially offering a buying opportunity for investors.
- Peer Comparison: Microsoft's valuation is comparable to Amazon's but significantly lower than that of Alphabet, Apple, and Nvidia, leading analysts to believe that Microsoft could return to similar valuation levels as its peers, enhancing its attractiveness as an investment.
See More
Investors' Guide to AI Company Investments
- Investment Surge: Many investors are actively buying shares of AI companies, reflecting strong market interest and confidence in the AI revolution, which could drive stock prices higher.
- Investment Strategy: Certified Financial Planner® Matt Frankel shares a framework that emphasizes the importance of adopting the right approach when investing in AI companies to ensure benefits from this trend while avoiding potential risks.
- Market Timing: Based on morning prices from June 11, 2026, investors need to monitor market dynamics to make timely investment decisions that maximize returns.
- Video Release: The video was published on June 12, 2026, aiming to provide practical advice and insights for investors to make informed choices in the rapidly evolving AI sector.
See More
Apple's Unique Strategy in AI Investment
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 totaled approximately $12.7 billion, significantly lower than the combined over $400 billion spent by giants like Microsoft, Alphabet, Meta, and Amazon, indicating Apple's cautious approach to AI investment which may safeguard its financial health.
- AI Strategy Shift: At its developers conference, Apple unveiled a revamped Siri powered by Alphabet's Gemini models, incurring an annual partnership cost of about $1 billion; this strategy may keep Apple competitive in the AI space while avoiding massive capital expenditures.
- Shareholder Returns Priority: In its fiscal Q2 2026, Apple announced a $100 billion share repurchase authorization and a 4% dividend increase, demonstrating its commitment to shareholder returns with over $28 billion in operating cash flow, rather than blindly chasing AI investments.
- Market Watch Focus: Investors should monitor user acceptance of the new Siri and the sustained growth of iPhone and services revenue; maintaining double-digit growth would indicate consumer endorsement of Apple's AI strategy, further solidifying its market position.
See More
Investors Eagerly Buy AI Company Shares
- Investor Enthusiasm: Many investors are actively buying shares of AI companies, reflecting strong market confidence in the AI revolution, particularly driven by tech giants like Nvidia and Intel, which are expected to yield significant investment returns.
- Unique Company Spotlight: The analyst team released a report revealing a company dubbed an 'Indispensable Monopoly' that provides critical technology needed by Nvidia and Intel, potentially becoming a highlight for future investments and attracting considerable investor interest.
- Return Comparison: According to recent data, Stock Advisor's total average return stands at 935%, significantly outperforming the S&P 500's 206%, showcasing the strong performance of its recommended stocks and drawing more investors to join.
- Recommended Stock List: The analyst team has unveiled the top 10 stocks to buy right now, available to investors who join Stock Advisor, further enhancing the potential returns of their investment portfolios.
See More
Apple's Capital Expenditure Analysis for Fiscal 2025
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 totaled approximately $12.7 billion, significantly lower than the combined $400 billion spent by peers like Microsoft, Alphabet, Meta, and Amazon, indicating a conservative approach that may impact its competitiveness in the AI sector.
- Shareholder Return Plan: In April, Apple announced a substantial $100 billion share repurchase program and raised its dividend by 4% in its second-quarter earnings report, reflecting a commitment to returning value to shareholders amidst strong financial performance, which bolsters investor confidence.
- AI Strategy Shift: At its developers conference, Apple unveiled an overhaul of Siri powered by Alphabet's Gemini models, indicating a strategic pivot despite relying on a competitor's technology, with an annual partnership cost of about $1 billion that could affect its future market position.
- Strong Financial Performance: In the second quarter of fiscal 2026, Apple reported a 17% year-over-year revenue increase to $111.2 billion, achieving its best March quarter ever, with operating cash flow exceeding $28 billion, demonstrating effective capital management while sustaining robust growth.
See More
Microsoft's AI Business Thrives Amid Low Valuation
- Significant AI Growth: In Q3 of fiscal 2026, Microsoft's AI business achieved an annual revenue run rate of $37 billion, growing 123% year-over-year, demonstrating strong market demand particularly in cloud computing and core product integration, thereby solidifying its leadership in the AI sector.
- Surge in Cloud Revenue: Azure's revenue increased by 40% year-over-year, reflecting robust demand for cloud services essential for processing and training AI workloads, which provides strong support for Microsoft's overall performance.
- Low Stock Valuation: Despite the impressive performance of its AI business, Microsoft's stock trades at a low cash flow valuation not seen since 2019, indicating a market underestimation of its future growth potential, which may present a buying opportunity for investors.
- Peer Comparison: Microsoft's valuation is comparable to Amazon's but significantly lower than Alphabet and Apple, suggesting that given its strong AI growth, there is reason to believe Microsoft's valuation could rebound, potentially offering capital appreciation for investors.
See More
Microsoft's Strong AI Growth Amidst Stock Decline Raises Buy Interest
- Stock Performance Decline: Microsoft's stock has fallen approximately 17% this year while the S&P 500 has risen about 7%, indicating a decline in market confidence and raising concerns among investors about its future performance.
- Significant AI Growth: In Q3 of fiscal 2026, Microsoft's Azure cloud revenue increased by 40% year-over-year, and its AI business saw a remarkable annual revenue growth rate of 123%, reflecting strong demand for AI infrastructure.
- Low Valuation: Microsoft's price-to-cash-from-operations valuation is at its lowest since 2019, suggesting that the stock is undervalued within the AI sector, potentially offering a buying opportunity for investors.
- Peer Comparison: Microsoft's valuation is comparable to Amazon's but significantly lower than that of Alphabet, Apple, and Nvidia, leading analysts to believe that Microsoft could return to similar valuation levels as its peers, enhancing its attractiveness as an investment.
See More
Investors' Guide to AI Company Investments
- Investment Surge: Many investors are actively buying shares of AI companies, reflecting strong market interest and confidence in the AI revolution, which could drive stock prices higher.
- Investment Strategy: Certified Financial Planner® Matt Frankel shares a framework that emphasizes the importance of adopting the right approach when investing in AI companies to ensure benefits from this trend while avoiding potential risks.
- Market Timing: Based on morning prices from June 11, 2026, investors need to monitor market dynamics to make timely investment decisions that maximize returns.
- Video Release: The video was published on June 12, 2026, aiming to provide practical advice and insights for investors to make informed choices in the rapidly evolving AI sector.
See More
Apple's Unique Strategy in AI Investment
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 totaled approximately $12.7 billion, significantly lower than the combined over $400 billion spent by giants like Microsoft, Alphabet, Meta, and Amazon, indicating Apple's cautious approach to AI investment which may safeguard its financial health.
- AI Strategy Shift: At its developers conference, Apple unveiled a revamped Siri powered by Alphabet's Gemini models, incurring an annual partnership cost of about $1 billion; this strategy may keep Apple competitive in the AI space while avoiding massive capital expenditures.
- Shareholder Returns Priority: In its fiscal Q2 2026, Apple announced a $100 billion share repurchase authorization and a 4% dividend increase, demonstrating its commitment to shareholder returns with over $28 billion in operating cash flow, rather than blindly chasing AI investments.
- Market Watch Focus: Investors should monitor user acceptance of the new Siri and the sustained growth of iPhone and services revenue; maintaining double-digit growth would indicate consumer endorsement of Apple's AI strategy, further solidifying its market position.
See More
Investors Eagerly Buy AI Company Shares
- Investor Enthusiasm: Many investors are actively buying shares of AI companies, reflecting strong market confidence in the AI revolution, particularly driven by tech giants like Nvidia and Intel, which are expected to yield significant investment returns.
- Unique Company Spotlight: The analyst team released a report revealing a company dubbed an 'Indispensable Monopoly' that provides critical technology needed by Nvidia and Intel, potentially becoming a highlight for future investments and attracting considerable investor interest.
- Return Comparison: According to recent data, Stock Advisor's total average return stands at 935%, significantly outperforming the S&P 500's 206%, showcasing the strong performance of its recommended stocks and drawing more investors to join.
- Recommended Stock List: The analyst team has unveiled the top 10 stocks to buy right now, available to investors who join Stock Advisor, further enhancing the potential returns of their investment portfolios.
See More
Apple's Capital Expenditure Analysis for Fiscal 2025
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 totaled approximately $12.7 billion, significantly lower than the combined $400 billion spent by peers like Microsoft, Alphabet, Meta, and Amazon, indicating a conservative approach that may impact its competitiveness in the AI sector.
- Shareholder Return Plan: In April, Apple announced a substantial $100 billion share repurchase program and raised its dividend by 4% in its second-quarter earnings report, reflecting a commitment to returning value to shareholders amidst strong financial performance, which bolsters investor confidence.
- AI Strategy Shift: At its developers conference, Apple unveiled an overhaul of Siri powered by Alphabet's Gemini models, indicating a strategic pivot despite relying on a competitor's technology, with an annual partnership cost of about $1 billion that could affect its future market position.
- Strong Financial Performance: In the second quarter of fiscal 2026, Apple reported a 17% year-over-year revenue increase to $111.2 billion, achieving its best March quarter ever, with operating cash flow exceeding $28 billion, demonstrating effective capital management while sustaining robust growth.
See More
