Microsoft and Alphabet: AI-Driven Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Microsoft AI User Growth: Microsoft has reached 900 million users for its AI features, with its Copilot assistant surpassing 150 million monthly active users, driving a 17% year-over-year revenue increase in productivity tools, indicating users' willingness to pay more for AI enhancements, thereby boosting long-term profitability.
- Strong Future Commitments: Microsoft's Azure cloud business boasts future commitments of $400 billion, reflecting its robust competitive position in the cloud market and expected substantial long-term returns for the company.
- Google Ad Revenue Growth: Alphabet's ad revenue grew 14% year-over-year in Q3 2025, driven by the introduction of AI features that increased user inquiries, creating more ad opportunities and further solidifying its market position.
- Digital Advertising Market Outlook: Despite recession risks, Google's digital advertising market is projected to double to $1.1 trillion by 2030, and with its strong AI capabilities, Google is well-positioned to retain its user base and capitalize on this growth opportunity.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 470.280
Low
500.00
Averages
631.36
High
678.00
Current: 470.280
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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.
