As Warren Buffett famously said about investing in the stock market, it may be good “to be greedy when others are fearful.” However, does that sentiment apply to Microsoft stock right now?
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Microsoft’s recent earnings exceeded expectations, driving up analyst price targets and prompting upgrades. Analysts are particularly bullish on Microsoft’s cloud computing segment, with some projecting significant revenue growth over the next few years, thanks in large part to the company’s role in artificial intelligence (AI).
However, keep in mind that some investors are concerned that Microsoft’s stock price has risen rapidly, leading to a potentially expensive valuation. So, is Microsoft a good stock to buy for you in the second half of 2025? Here’s what experts have to say.
Microsoft (MSFT) Stock Performance
Here are a few key takeaways from how Microsoft stock is performing as of Aug. 26, 2025, according to MarketWatch:
- Stock price: $504.36
- Market cap: $3.75 trillion
- 52-week high: $555.45
- 52-week low: $344.79
Long-Term Outlook
Some analysts believe that Microsoft’s strong position in the PC market, its dominance in the operating system industry and its general continued innovation in AI make it a compelling long-term investment for at least the next couple of years.
Fei Chen, founder and CEO of Intellectia, thinks that Microsoft’s future looks bright. He said, “Microsoft is still a good ‘buy’ for long-term investors based on its cloud computing, AI and enterprise software leadership.”
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Earnings and Fundamentals
Despite some headwinds, Microsoft’s revenue should still be positive. “Revenue growth will likely slow from the torrid pace of last year, but the company should still deliver double-digit growth,” said Dave Novosel, chartered financial analyst (CFA) and senior investment analyst at Gimme Credit, an investment research firm.
“Looking at Microsoft from a fixed income perspective, the fundamentals are excellent, although not as impressive as they were,” Novosel said. “Free cash flow should exceed $30 billion, providing tremendous financial flexibility.”
The company outperformed its peers in terms of return on assets, return on equity and return on invested capital, according to ChartMill.
The Role of AI in Microsoft’s Growth
AI remains a key driver in Microsoft’s growth. “Microsoft is best placed to take advantage as companies integrate AI into workflows, security and automation,” Chen said. “Its tie-up with OpenAI is deep enough to generate a first-mover advantage in monetizing generative AI.”
Even as OpenAI explores other partnerships, such as collaborations with the CoreWeave and Stargate data centers, Microsoft maintains a stronghold in the AI industry. “Microsoft’s ownership of OpenAI’s computationally intensive training runs still gives it an intimidating moat in the AI cloud wars,” Chen said. “With Copilot tools being deployed throughout Office 365, GitHub and enterprise environments… Microsoft is well-placed to sustain revenue growth as companies integrate AI into workflows, security and automation.”
While Microsoft’s AI focus could benefit it, the stock isn’t reliant on its performance. “OpenAI will represent a significant portion of its revenue, but [the stock] will not be heavily dependent on this source by any means,” Novosel said.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Is Microsoft Stock Still a Buy in 2025?
