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Microsoft Corp (NASDAQ:MSFT) could be heading into one of its most important growth phases in years, with artificial intelligence poised to drive a sharp acceleration in its cloud business and catch sceptical investors off guard in 2026. That is the view of Dan Ives, senior technology analyst at Wedbush, who believes the market has yet to fully grasp how central AI is becoming to Microsoft's future earnings power.
Microsoft (MSFT) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
The artificial intelligence boom is entering a more complicated (and arguably more interesting) phase. According to Dan Ives, senior technology analyst at Wedbush, 2026 will mark a genuine inflexion point for the AI revolution, with markets forced to reconcile enormous long-term potential with the equally enormous capital required to get there.
MSFT stock has shown notable rallies, climbing over 30% within two months on several occasions, particularly in 2015 and 2023. These swift increases have significantly benefited investors during crucial uptrends.
If you've been waiting for an opportunity to pick up shares of Microsoft (NASDAQ:MSFT) on the cheap amid broad AI and tech jitters, here's your chance.
Nebius (NBIS) is rated a Strong Buy, driven by a robust balance sheet, rapid hyperscale expansion, and significant AI infrastructure contracts with Microsoft and Meta. NBIS targets 1 GW active usage by 2026, with the Microsoft deal alone valued at $17.4 billion over five years, supporting aggressive revenue growth. Despite current EBITDA losses, NBIS's low pricing strategy and reinvestment plan position it for margin expansion and sustainable profitability as GPU capacity scales.
Market movers: The Investment Committee's top stocks to watch right now.
Microsoft leads Zacks??? top research picks today, alongside Novartis and RTX, highlighting cloud, pharma innovation and defense demand shaping 2025.
Microsoft is upgraded to a 'strong buy' as recent declines present a compelling entry point for long positions. MSFT's Q1 FY26 revealed higher-than-expected capex driven by AI infrastructure, but Azure's robust 28% YoY growth underpins the investment thesis. Commercial RPO surged over 50% to nearly $400B, signaling strong forward demand and mitigating capex concerns.
Microsoft (NASDAQ: MSFT) has delivered solid returns in 2025, but shares remain below their 52-week high of $553.50.
Microsoft announced Thursday it would buy 3.6 million carbon removal credits from a biofuels plant in Louisiana owned by C2X. The plant, which is slated to begin operating in 2029, will process forestry waste into methanol, which can be used to power ships and planes and as a raw material for chemical manufacturing.