MSFT Alert: Buy Microsoft Stock Before the Next Rise

Even though the price has been trending sideways in recent months, it probably won’t last much longer Microsoft (NASDAQ:MSFT), the stock makes its next rise. So far this year, Microsoft shares are up 13%, only slightly better than the benchmark S&P 500 index’s 12% rise.

Stocks remained stagnant after Microsoft reached and surpassed a market cap of $3 trillion in late January Apple (NASDAQ:AAPL) to become the largest listed company in the world. With its leadership in AI, Microsoft stock is likely to gain momentum in the near term.

AI features

Microsoft recently unveiled several new artificial intelligence tools for use with its Windows operating system and cloud computing infrastructure. Analysts expect more details at Microsoft’s annual Build conference in late May.

According to media reports, Microsoft plans to announce a new advanced paste feature for Windows that will allow users to run AI models directly on their PC instead of sending data to the cloud.

Earlier this year, Microsoft introduced new Surface PCs that feature a Copilot button for quick access to the company’s AI chatbot. Microsoft will talk about Windows apps’ access to new AI features at the Build conference. The company plans to introduce AI security features to reduce chatbot security risks and improve the Copilot chatbot.

These are just the latest ways Microsoft is solidifying its global leadership position in the cutting-edge field of AI. The company continues to maintain close relationships with private companies OpenAIin which the company has invested more than $10 billion.

OpenAI recently announced new AI plans of its own, including an artificial intelligence-based search engine to compete with Google and a partnership with a social media company Reddit (NYSE:RDDT).

Growth on all fronts

Microsoft continues to report financial results that demonstrate growth on all fronts of the company. In particular, the company’s first quarter release showed accelerated growth in cloud computing.

The company’s Intelligent Cloud segment, including Azure public cloud, generated revenue of $26.71 billion in the quarter. That was up 21% from the previous year and above the $26.26 billion expected by analysts. Sales with Azure alone increased by 31% compared to the previous year.

Other highlights of the earnings report include Xbox’s video game division’s revenue increasing 62% year-over-year, driven by a boost from the $68 billion acquisition Activision Blizzardwhich produces popular game titles such as “Call of Duty”.

Sales of Windows licenses to device manufacturers rose 11%. During the quarter, Microsoft began selling access to the Copilot chatbot for small businesses with Microsoft 365 productivity software subscriptions.

Strong earnings and growth across multiple business segments are why 33 professional analysts currently rate MSFT stock as a Good Buy, with an average price target of $491.56 per share, which is 17% higher than where the shares are currently trading.

Buy Microsoft shares

Microsoft stock hasn’t been rocking the world lately. The stock is likely to rise as AI technologies, cloud computing and video games contribute to its growth.

Analysts remain optimistic about Microsoft and its future prospects, and the company’s strength has made it the most valuable publicly traded company in the world. Investors should keep the faith. Microsoft stock is a buy.

At the time of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.