Microsoft: One Of The Best Buying Opportunities In Big Tech

Microsoft is rated Strong Buy, driven by accelerating cloud and AI monetization, with a compelling setup ahead of fiscal Q4 earnings. MSFT's Intelligent Cloud and Productivity segments are showing sequential acceleration, while elevated AI-driven capex is expected to peak and then moderate. I project Q4 revenue of $91.3B, well above guidance, with Azure growth at 43% c. FX% and operating margin expansion despite margin headwinds. My 2027 EPS estimate is $21, supporting a $630 price target (65% upside), as AI investments begin to yield significant earnings leverage. Microsoft is just a few days away from its fiscal Q4 earnings report with a compelling setup. The company's accelerating cloud growth, rapidly progressing monetization of AI investments, and cheap valuation with higher earnings revisions should be on.