The Perfect AI Stock Does Exist. It’s Microsoft.[Stocks](https://moneymorning.com/category/article/stocks/) # The Perfect AI Stock Does Exist. It’s Microsoft.  by Omor IE  October 30, 2025  Share it: **Meta Platforms’** ( [META](https://moneymorning.com/stocks/meta)) earnings miss earlier stirred the pot in the artificial intelligence space, even though it was due to a surprise one-time tax charge of $15.9 billion. **Microsoft** ( [MSFT](https://moneymorning.com/stocks/msft)) investors would be wrong to overreact. Meta is playing catch-up, and Microsoft is a fine middleground between **Apple** ( [AAPL](https://moneymorning.com/stocks/aapl))-like inaction on AI and Zuckerberg’s all-in wager. [MSFT](https://moneymorning.com/stocks/msft) stock still slumped, and it is down 3% today as of this writing. Its first fiscal quarter earnings report began with a deluge of news that shareholders had to digest. The most important one was that the company was forfeiting a small chunk of its original 32.5% stake in OpenAI. It settled on 27%. In exchange, OpenAI has agreed to buy an incremental $250 billion of Azure services. I see this as a positive. Microsoft’s entire stake in OpenAI is worth $130 billion. Plus, the company is boosting its AI capacity by 80% this year, promising to double its total data center footprint in the next two years. ## **Why I’d buy MSFT stock hand over fist today** Microsoft now plans to spend even more on AI infrastructure. Capacity will still remain short of demand, and this build-out could potentially lead to Azure overtaking AWS. The cloud business grew 40%. When you combine that with the OpenAI stake, its own in-house AI development, and the extremely profitable Office software stack, [MSFT](https://moneymorning.com/stocks/msft) stock becomes very attractive. It even has an active quantum computing program. Its Majorana 1 quantum chip “...can be easily deployed inside Azure datacenters.” It’s too early, and likely too expensive to do that just yet. But that’s another feather that a competitor like Meta lacks in its hat. Furthermore, cash from software remains far more reliable than cash from ads. [MSFT](https://moneymorning.com/stocks/msft) stock is currently trading just below its 20-day moving average, near $520. I’d expect the stock to snap back to new highs as the market digests these earnings. The breakneck growth of Azure can take it above $600 by mid-2026.  **Beat the market, without relying on brokers or biased institutions.** Email(Required) Instagram This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)