Microsoft stock (MSFT) is in a “pole position” for significant gains in the coming months, according to Morgan Stanley analysts. The Wall Street experts see the tech giant’s moves in artificial intelligence (AI) as a potential catalyst for investors to drive shares up. Recently, Microsoft announced plans to invest $80 billion in data centers for AI applications. These investments could help the company’s stock value boom in 2025, making it a premium AI stock investment option.

Morgan Stanley analysts suggest that Microsoft is in a “pole position” to capitalize on the growing demand for generative artificial intelligence (AI)-powered applications. These autonomous programs can perform tasks without being told what to do all the time. The market for AI agents is expected to grow 44% per year to reach $47 billion by 2030, according to research from Markets and Markets. With Microsoft’s recent innovations, it could be a dominant holder in the AI agent market.

Microsoft Stock a “Buy” According to Morgan Stanley, Wall Street Analysts

Leading Wall Street strategists have given Microsoft a “buy” call, indicating that its best days are ahead. Out of 58 analysts that cover the stock on Wall Street, 39 rate it a “buy” and 14 rate it a “strong buy,” according to Yahoo! Finance, including Morgan Stanley. Microsoft is seen as “the best-positioned franchise to gain from an improving spending backdrop,” said Morgan Stanley analyst Keith Weiss. As the leader in productivity software, Microsoft could become the face of AI for millions of consumers and businesses over the long term, making it a premium investment option.

Also Read: Nvidia Passes Apple in Market Cap: How Trump Helped Drive the Stock

According to stock analysis from TipRanks, The average price target is $507.00 with a high forecast of $550.00 and a low forecast of $425.00. The average price target represents a 13.95% change from the last price of $444.95.

Microsoft will publish its December quarter earnings after the market closes on Jan. 29, with analysts looking for overall revenues of $68.84 billion and Intelligent cloud revenues, which includes Microsoft’s cloud product Azure, of around $28.1 billion. “We still expect Azure growth to accelerate from H1 (in the second half of the financial year] as our capital investments create an increase in available AI capacity to serve more of the growing demand,” Microsoft finance chief Amy Hood told investors in October. A positive earnings report will likely help Microsoft’s stock spark its slow start to 2025 and set it ahead of other Mag-7 members in the AI race.