This Tech Stock Is Being Highly Overlooked in the AI Race

MSFT earns a BUY with a $590 price target as Azure crosses $100B in annual revenue and Copilot surpasses 30 million paid seats.

AMZN trades at P/E 36 versus MSFT's 27 despite AWS growing slower than Azure's 43%, making the $590 target look conservative.

Full-year capex hit $116B while free cash flow fell 23%, but net income still grew 31%, making demand normalization the lone bear-case risk.

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Microsoft has become the quiet outlier in the AI trade. While NVIDIA ( NASDAQ:NVDA ) absorbs the spotlight and hyperscaler rivals chase headlines, Microsoft ( NASDAQ:MSFT ) is quietly compounding the deepest enterprise AI moat in software.

Our 24/7 Wall St. price target for Microsoft is $590.17, implying upside of 22.13% from a current price of $483.24. We rate it a buy with high confidence, driven by an Azure business that just crossed $100 billion in annual revenue and a Copilot franchise that has become the fastest-monetizing enterprise product in the company's history.

Why Microsoft Feels Overlooked Right Now

Microsoft shares are down 3.37% over the past year and roughly flat year to date, even after ripping 24.03% in the last month.

The July earnings report was a statement: revenue of $90.01 billion grew 17.75%, non-GAAP EPS came in at $4.74, and Azure grew 43%. The stock reacted with a 15.51% day-of pop, its strongest earnings reaction in the dataset. Retail sentiment on Reddit has followed, with recent posts on the OpenAI stake driving bullish readings.

Bulls see Microsoft as the purest scaled beneficiary of enterprise AI adoption. Commercial remaining performance obligations sit at $678 billion, up 84%, a backlog that de-risks near-term revenue. Management guided Q1 FY27 Azure growth to approximately 45% in constant currency, and CFO Amy Hood flagged that "demand continues to exceed available supply."

Copilot has cleared 30 million paid seats, GitHub Copilot revenue accelerated over 60% quarter over quarter, and a new per-seat plus consumption model expands the TAM materially. Our bull scenario points to $614.33, a 27.13% return, on stronger Azure re-rate and Copilot ARPU expansion.