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Microsoft and the Gates Foundation: Key Financial Insights
The Gates Foundation holds approximately 25% of its assets, valued at around $10.7 billion, in Microsoft (NASDAQ: MSFT), which has significantly benefited from the growing AI sector. In Q3 of fiscal 2025, Microsoft’s total revenue rose to $70.1 billion, with the Intelligent Cloud division generating $26.8 billion, of which Azure—a key player in AI—saw a 33% year-over-year growth.
However, Microsoft’s stock is currently trading at nearly 40 times trailing earnings, making it appear somewhat overvalued compared to peers like Meta Platforms, which trades at 28 times trailing earnings and is experiencing faster growth. Wall Street analysts project earnings of $15.14 per share for fiscal 2026, indicating a forward PE ratio of 33.7, thus prompting potential investors to exercise caution.
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