Microsoft Could Be the Next Alphabet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2026
0mins
Should l Buy MSFT?
Source: NASDAQ.COM
- Market Valuation Recovery: Microsoft's stock is currently at its lowest point since the 2023 sell-off, with overall revenue rising 17% year-over-year in Q2 of fiscal 2026, indicating a recovery in market confidence regarding its future growth.
- AI Sector Growth: Microsoft's Azure segment, which is most exposed to AI, saw a remarkable 39% year-over-year growth, showcasing its leadership in technological innovation and potentially laying a solid foundation for future revenue increases.
- Analyst Optimism: Wall Street analysts are bullish on Microsoft's revenue growth for fiscal years 2026 and 2027, expecting increases of 16% and 15% respectively, which further bolsters investor confidence in its stock.
- Significant Valuation Potential: With a price-to-earnings ratio of 24 times, a return to 30 times would indicate a 25% upside, and this potential, combined with expected earnings growth, suggests that now is an excellent time to invest in Microsoft.
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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. 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.
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