203 Billion Reasons Why Microsoft Is a Buy in 2026

• Microsoft is benefiting successful aggregate ways from its OpenAI investment.

• Azure has emerged arsenic 1 of the champion clouds to physique AI applications on.

• The tech elephantine is increasing astatine a coagulated rate, and the banal should travel suit.

• 10 stocks we similar amended than Microsoft ›

Microsoft (NASDAQ: MSFT) has been a monolithic concern occurrence implicit the past fewer years. Anybody who has bought Microsoft banal has been the beneficiary of respective cardinal trends successful the tech industry, chiefly unreality computing and artificial quality (AI). However, Microsoft's AI strategy is simply a spot antithetic than astir of its peers. Instead of gathering its ain generative AI exemplary internally similar Alphabet oregon Meta Platforms, it chose to spouse with OpenAI, the shaper of ChatGPT.

While this narration got a spot messy astatine times, Microsoft has a important fiscal involvement successful OpenAI's success. I deliberation this could beryllium a apical crushed to bargain Microsoft banal successful 2026, arsenic it bolsters the remainder of the concern case.

After a batch of dialog successful determining precisely however overmuch of OpenAI Microsoft owns, the lawyers came to the decision that Microsoft owned astir a 27% involvement successful OpenAI. That's a immense chunk, and it could beryllium worthy a ton based connected OpenAI's latest valuation target. In December, OpenAI was targeting a $750 cardinal valuation to rise much wealth to run the business. If that fig turns retired to beryllium accurate, past Microsoft's involvement is worthy astir $203 billion.

That's a immense investment, truthful seeing OpenAI win is simply a immense constituent for Microsoft. As a result, it has integrated OpenAI's ChatGPT into its Copilot merchandise lineup, which helps users integrate generative AI features crossed Office products, arsenic good arsenic different concern bundle Microsoft produces. However, Microsoft isn't betting the location connected ChatGPT.

In its Azure AI Factory, it offers aggregate generative AI models extracurricular of ChatGPT. Developers tin prime from alternate models similar Grok from xAI, Meta's unfastened connection exemplary Llama, Anthropic's Claude, and galore others. This neutral strategy of offering galore types of models truthful developers tin take which 1 fits their needs astir has been a large strategy for Microsoft. It's 1 of the superior reasons wherefore Microsoft's unreality computing part has dramatically outpaced Amazon's and Google's.

In the archetypal 4th of Microsoft's fiscal 2026 (ended Sept. 30), Azure's gross roseate a jaw-dropping 40% twelvemonth implicit year. For comparison, Google Cloud, a smaller entity that should beryllium capable to turn faster, was up 34% twelvemonth implicit year. AWS besides had a beardown 4th compared to caller results, but its gross lone roseate 20%.