Microsoft has been named “Top Pick” by Morgan Stanley among large-cap software stocks heading into 2026, with analyst Keith Weiss expecting robust demand and strong operating margin expansion.
Weiss believes Microsoft’s cloud computing unit, including Azure, will drive growth and sees potential for high-teens earnings per share (EPS) growth. He estimates Azure’s AI gross margins could reach 30% by 2029. This optimism leads Weiss to call MSFT stock “underpriced” and concludes that it is a top pick.
The analyst’s conviction comes after meeting with Microsoft executives, who left him feeling confident in the company’s future prospects. A consensus Strong Buy rating among Wall Street analysts supports this call, with 32 analysts recommending a buy over the past three months.
Source: https://www.tipranks.com/news/microsoft-stock-msft-named-a-top-pick-for-2026-by-morgan-stanley