Microsoft Corporation (MSFT) has been identified as one of the top large-cap stock picks by billionaire Steve Cohen, ranking 10th on his list of stocks with significant upside potential. Cohen, the founder of Point72 Asset Management, has highlighted Microsoft’s strong growth prospects, particularly in its cloud computing and artificial intelligence (AI) initiatives.
Microsoft’s strategic investments in AI, including its $14 billion investment in Openai, have positioned the company as a leader in the AI sector. The company’s Azure AI revenue surged by 157% year-over-year in fiscal Q2 2025, accounting for 13% of all Azure revenues. This growth underscores Microsoft’s commitment to leveraging AI to drive future revenue streams.
Analysts, such as Gregg Moskowitz from Mizuho, have set a price target of $475 for Microsoft’s stock, citing the company’s potential for long-term growth driven by its cloud division, Azure, and the widespread adoption of Microsoft 365. Despite recent market fluctuations, Microsoft’s strong fundamentals and strategic positioning in the tech industry make it an attractive investment opportunity.
Cohen’s investment in Microsoft reflects his confidence in the company’s ability to capitalise on emerging technologies like AI and cloud computing. Point72 Asset Management holds a significant stake in Microsoft, valued at approximately $714 million as of Q4 2024. This investment is part of Cohen’s broader strategy to focus on companies with substantial growth potential, even in a challenging economic environment.
While Microsoft is considered a solid investment, some analysts suggest that other AI stocks might offer even greater returns in the short term. However, Microsoft’s diversified portfolio and its role as a foundational player in the tech ecosystem make it a compelling choice for long-term investors seeking stability and growth.