Microsoft: The Inflection Point May Finally Be Here

Microsoft (MSFT) trades at a rare discount, down 30% from its high, despite robust ≈17% EPS growth and sector-wide SaaS weakness. I see the market mispricing MSFT’s AI integration; Office 365 remains entrenched while Copilot and Claude enhance, not disrupt, its software stack. Azure’s 40% YoY growth is capacity-constrained, but management expects these limits to resolve by end-FY26, potentially accelerating growth into FY27. MSFT’s current 23.45x P/E is below historical averages, offering higher-than-average EPS growth at a compelling valuation; I’m accumulating aggressively.

Microsoft (MSFT) currently trades at $395/share, not too far from its 52-week low of $350/share. The stock is down roughly 30% from its all-time high of $555/share from autumn of last year. For a blue-chip firm, like Microsoft is, a decline of 1/3