Microsoft seen as a strong AI growth pick for 2026

Analysts are naming Microsoft as a leading pick for 2026 because its AI-related businesses are expanding. The company posted sales growth and strong margins while its stock traded below recent averages.

Microsoft is being discussed as a leading stock pick for 2026, largely because of its expanding AI businesses. Analysts point to recent sales gains and unusually strong operating margins. The company has invested heavily in AI infrastructure as demand for tools like Copilot and Azure grows. Market commentary notes the current share price looks lower than some longer-term averages. What was reported: - Microsoft is being highlighted by analysts as a top pick for 2026. - The company reported sales growth and strong operating margins in the most recent quarter. - AI-related spending and products, including cloud services and Copilot, are central to forecasts. - Recent stock price and valuation measures were described as lower than some historical averages. Summary: Analysts expect Microsoft’s AI-driven businesses to support future value, and several have published higher price targets for 2026. How the market responds over the coming months is undetermined at this time.