Key Points
Microsoft (NASDAQ: MSFT) recently reported a 39% growth in its cloud business, despite a drop in stock price of about 10% following its latest quarterly earnings report. The company’s ongoing investments in AI infrastructure have led to increased capital expenditures, aimed at meeting rising demand for its AI products and services.
As of now, Microsoft’s stock trades at 24 times forward earnings estimates, the lowest in three years, presenting a potential buying opportunity for investors. Analysts predict significant long-term growth in the AI market, which could reach trillion-dollar valuations by the end of the decade.
