Microsoft: Shares Look Attractive Heading Into Azure Acceleration in the Second Half of This Year

We are highlighting wide-moat Microsoft as one of our top technology stocks, as shares look attractive relative to our fair value estimate of $490 per share. We think the stock is set up well for 2025, with relatively stagnant performance over the last 12 months. Our long-term thesis centers on the expansion of hybrid cloud environments, the proliferation of artificial intelligence, and Azure. The firm continues to use its on-premises dominance to allow clients to move to the cloud at their own pace. We center our growth assumptions around Azure, Microsoft 365 E5 migration, and traction with the Power Platform for long-term value creation.