Microsoft and Nvidia: Prime AI Stock Buying Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy MSFT?
Source: Fool
- Microsoft's Market Advantage: Microsoft is well-positioned in the generative AI space, with its software used by nearly every business globally; despite a 23% stock price drop, its Azure cloud platform achieved a 39% revenue growth in Q2 FY 2026, indicating strong market demand and future growth potential.
- Strong Financial Performance: In its latest earnings report, Microsoft reported a 17% revenue growth and a 23% net income growth, and although the market reacted negatively, this presents an excellent opportunity for investors to buy at a low valuation, especially following the 2023 market sell-off.
- Nvidia's Industry Leadership: As a primary beneficiary of AI spending, Nvidia's GPUs have become the standard for most AI hyperscalers; despite a 0.08% stock price decline, analysts expect a 53% revenue growth over the next year, showcasing strong growth prospects.
- Significant Investment Value: Nvidia's forward P/E ratio is 24, slightly above the S&P 500's 21.8, but given its rapid growth and leadership in a technological revolution, this valuation is considered relatively cheap, making it a rare buying opportunity for investors.
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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: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
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.
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See More
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