Microsoft: AI Hype Could Lead To Exponential Growth


  • Microsoft experienced diminishing growth and resorted to standard means to support operating margins going forward.
  • MSFT is well positioned to capture more share in the high-margin cloud and software business from competition due to the “artificial” growth drivers and digital transition trends.
  • The current valuation appears in line with the sector, although the upside is still present.

Microsoft Square in Downtown Los Angeles


The tech sector is gradually acquiring the features of the conventional industries that are highly related to the macro picture. Microsoft Corporation (NASDAQ:MSFT) reflected that transition as the rest of the tech sector, and despite its position at the

Worldwide IT Spending Forecast (Millions of U.S. Dollars)

Worldwide IT Spending Forecast (Millions of U.S. Dollars) (Gartner January 2023)

Operating profit and margin

Operating profit and margin (company reports)

Microsoft valuation

Microsoft valuation (Seeking Alpha data)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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