Microsoft Stock: Buy Now or Big Mistake?

[00:00:00]Microsoft stock is doing something very strange right now because while the AI trade has exploded higher again, Microsoft is still down year to date.

[00:00:09]This is not some broken company. This is Microsoft, one of the most powerful businesses on Earth. A company that just generated over 82 billion of quarterly revenue and almost 32 billion of quarterly net income. And yet, despite all of that, Microsoft has lagged Nvidia, Google, Oracle, Amazon, and many of the biggest AI winners. So, the question is simple. Is the market missing something? Or is Microsoft finally too big, too expensive, and too slow to deliver the kind of AI returns investors now expect? Because this chart gets to the heart of the bare case.

[00:00:46]Under some assumptions, Microsoft's AI investment does not even clear a positive return. That is the concern.

[00:00:54]Billions going into data centers, GPUs, AI infrastructure, and C-pilot. But the market still wants proof that the revenue will show up fast enough. And yet, at the same time, Wall Street has suddenly started raising Microsoft price targets again. Goldman Sachs raised it to $610, Piper Sandler at $540, JMP sitting at $550, and Wells Fargo, well, they've hiked their price target to now sitting at 650. And we also had Bill Aman who bought over 5.6 million shares in Q1. So today we're going to break down the real Microsoft thesis, not the lazy version of Microsoft's a great company, so buy it. the real version, the bull case, the bare case, AI capex risk, Azour opportunity, the Nvidia Microsoft AI PC catalyst, the valuation, and most importantly, the price where I think Microsoft actually becomes interesting because my DCF says Microsoft is not a screaming bargain, but it may be one of the highest quality AI compounders currently being underappreciated by the market. But before we get into Microsoft, we need to talk about the market backdrop because this is where a lot of investors getting uncomfortable. The S&P 500 is near all-time highs. The Nasdaq has been incredibly strong. And historically, the market often peaks late in the year, especially in December. But this rally has not just been strong, it's been extreme. The NASDAQ 100 recently had a 7-week streak of closes above the upper bowlinger band. That doesn't happen often. And when it does, investors naturally start asking whether the market has gone too far too fast. Then you have this chart which highlights the NASDAQ 100 staying above its 10day moving average for 40 of the last 41 trading days. That's powerful momentum and it tells you investor chasing strength and when investors chase strength the market does become less forgiving and at the same time the current bull market is not historically ancient is around 1,326 days compared to an average of 1964. So you can make both arguments. You can argue the market is stretched short-term. But you can also argue the bull market does not need to be over.

[00:03:02]And that's why stock selection matters.

[00:03:05]The market's not moving evenly.

[00:03:06]Semiconductors have been strong. AI infrastructure stocks have been strong.

[00:03:10]Some software names have started to slowly recover. But there are still pockets of weakness. And Microsoft is one of the strange ones. When we take a look year to date, well, we can see it's down around 7% because Microsoft is not acting like a clear AI winner. investors once believed it was. Year to date, the stock is down around 7% and over the last year, whilst everything looks blindingly green, pretty much flat and that's what makes Microsoft very different from the likes of Nvidia, Broadcom and Google. So the real opportunity here is not that Microsoft is undiscovered. Everyone knows Microsoft. The opportunity is that investors may have temporarily stop rewarding Microsoft like an AI winner.

[00:03:50]And if that changes, the stock could rerate. And to set up the bigger market picture, I want to start with a short clip today from Tom Lee. And the reason this matters is because Microsoft thesis does not exist in isolation. If AI spending, AI adoption, and AI productivity are still powerful market tailwinds, then Microsoft is one of the biggest companies positioned to benefit.

[00:04:11]But listen carefully because he also says investors still need to be vigilant.

[00:04:15]>> Uh I I know it's been a tough market for folks. I mean, I I'm not surprised. you know, we were kind of expecting 2026 to be a year where turbulence could happen and people would see head fakes. Um, but there's still some really powerful tailwinds for America. You know, one is of course the AI story. Um, and now we're learning about the energy independence, right? America can deal with high oil because we're not going to have a shortage of it. Um, and then there's further tailwinds coming because as AI moves downstream, it's really benefiting American businesses. is I think that's why S&P earnings came in for the just the first quarter $10 higher. Um that's $40 for the year and if you just put a 20 multiple that adds 800 points to the S&P. So I I think there's a lot of grounding for why stocks are able to recover. Um so yeah, so it's but you know again I I think we still might have challenges between now and December. So I I think everyone still needs to be vigilant but generally bullish. Now, that clip matters because it frames the entire Microsoft debate.

[00:05:20]AI is still a major market tailwind, but not every AI stock is priced the same, and not every AI stock has performed the same. Look at this. Over one year, Google is up over 100% in comparison.

[00:05:32]Nvidia is up over 50%, Oracle is up around 40%. But Microsoft, we can see, is slightly negative. That is the opportunity and the risk. Microsoft has underperformed, but if the AI revenue story starts to improve, there may be room for Microsoft to catch up. And if you zoom out to five years, Microsoft has still been a powerful compounder. Is up around 90% over the period ahead of the S&P 500, but behind the QQQ. So, it's not a broken stock, is a highquality compounder going through a period of doubt. And that is exactly the type of setup long-term investors should at least study. Now, let's talk about Bill Aman. In Q126, Persing Square bought Microsoft. Their position, well, they added, as we said earlier, 5.6 million shares with a reported value above 2 billion, making in fact around 15% of the portfolio. That's not a tiny tracker position. That is a serious bet.

[00:06:24]And this matters because Aman is a concentrated investor. He's not buying hundreds of stocks as we can see from his overall portfolio. He's looking for a small number of what he calls super durable growth companies. So when he puts Microsoft into the portfolio at that size, it's worth asking why. And it's not just AMAN. Microsoft shows up as the most bought or added stock amongst institutional investors in Q1.

[00:06:48]Doesn't mean they're right, but it tells us something. While retail investors may be chasing the most obvious AI winners, some larger investors have been looking at Microsoft underperformance and seeing the opportunity. And I want to play this Aman clip because he explains the whole setup. He's not saying everything is cheap. He's saying that sometimes even in a market near highs the price of a very highquality company can become attractive because investors get too focused on short-term noise. That's exactly the question with Microsoft. Is the capex concern real or is it short-term noise distracting investors from the long-term compounding machine?

[00:07:24]If you have the ability to be long-term, every once in a while, you know, the price of a really high quality company gets stupidly cheap because someone gets, you know, is forced to sell because of a bad print for the quarter or a guidance change. Really, something that doesn't necessarily have any material impact on the long-term business. And those are the kind of dislocations we take advantage of.

[00:07:44]>> But the dislocations, it sounds like, are over. The stupidly cheap moment has has come and pass. Is that fair?

[00:07:49]>> I would say we're above stupidly cheap bottom. Uh but I still think there are a lot of very high qual like the way we we sort of model each of our companies. We build a model and we were our kind of go forward next three-year IRRa was something north of 30% at the bottom.

[00:08:05]You don't see that with really high quality companies. It's probably now in the mid20s. It's still a very high rate of projected return for some of the best businesses in the world. And uh that's suggested to me the market's cheap or at least cheap. Some of the this is a case where the highest quality companies are cheap. I'm not saying that energy companies are cheap today.

[00:08:24]>> That is exactly the Microsoft setup. Not because Microsoft is stupidly cheap today. I don't think it is, but because the stock has lagged while the business remains one of the most highest quality companies in the world, and it's trading below its own 5-year average forward P.

[00:08:37]It's still growing revenue. It's still beating earnings. It still is one of the strongest balance sheets in the market.

[00:08:42]And it's still one of the most important companies in AI. And you'll also notice we're still seeing the undervaluation within the blue tunnel. here highlights the intrinsic fair value. So that disconnect is where the undervaluation lies. Although the share price has been increasing in the recent period, but valuation still matters. And this is why I want to be very balanced in this episode because Microsoft is not a no-brainer at any price. Wonderful company. But if the AI returns disappoint, the stock can remain stuck.

[00:09:10]So let's start with the actual business.

[00:09:12]Their latest quarter was extremely strong. Revenue was up 18% year-on-year.

[00:09:16]Gross profit 56 billion. Bottom line sitting at 32 billion and their margins were incredibly healthy. Operating profit 46% bottom line sitting at 38.

[00:09:27]For a company of this size, that is almost ridiculous. And you can see their productivity and business processes did around 35 billion. This includes Microsoft 365, LinkedIn Dynamics, and the productivity software layer that sits inside millions of businesses. This is the part of Microsoft that makes the company so sticky. Once a business runs on Microsoft 365, Teams, Outlook, Excel, PowerPoint, SharePoint, Dynamics, and Security tools, it's not so easy to leave. And then you've got the cloud that did 35 billion, up 30% yearonear.

[00:09:58]This is where Azour sits and is arguably the most important part of Microsoft's AI thesis because AI workloads need cloud infrastructure, compute, storage, networking, security, and they need developer tools. And Microsoft can bundle many of these together. And then we have the more personal computing around 13 billion. That includes Windows, Xbox devices, and search. It's not the fastest growing part of Microsoft, but it could become more interesting again if AIP PCs become a real cycle. And we'll come back to that point later. So the key point when looking at their earnings is that Microsoft's not dependent on one AI product. They've got multiple monetization layers. Cloud, enterprise software, security, developer tools, productivity, Windows, gaming, LinkedIn, and potentially AI agents. That's why the business deserves a premium, but the premium still has to be justified. And this chart is probably one of the simplest ways to understand their quality. Back in 2015, quarterly revenue was in the low 20 billion range. Now it's above 80 billion. It's not a normal revenue chart. This is a machine and the recent trend is also very strong.

[00:11:00]Revenue's gone from around the 60 billion range to the 70 billion range and now it sits above 80. That's why Microsoft is so hard to bet against even when the stock underperforms. The business itself keeps compounding and earnings have also continued to beat expectations. The latest quarter shows Microsoft beat EPS estimates and the annual EPS for June 26 sits just below $17, rising to $1934 by June 27. And that is why the forward P falls if the estimates are right. And you can see here the estimated P moves from around 26.8 8 in 2026 to 23.3 in 27 down to 20 in 28 and 16.5 by 2029. So today's multiple looks expensive if earnings disappoint but if they keep compounding EPS the valuation can start to look much more reasonable very quickly. And now let's talk about Azour and this is one of the most important charts today. The AI thesis for Microsoft begins with cloud. We can see here that Azour and other cloud services grew 40% AWS sitting at 28 but Google cloud growing much faster around 63 but it's also from a smaller base. What matters is that Azour is still growing at a very high rate. It's not a mature low growth infrastructure business. It's still compounding fast and AI demand is one of the key reasons. Companies need compute capacity. They need model hosting. They need data platforms, AI tools and they need to connect those tools to existing enterprise software. That is where Microsoft is powerful. And then we look at the cloud backlog across AWS, Azour and Google Cloud. Total cloud backlog has exploded, but Microsoft total remaining performance obligations have been huge. This is future demand visibility. It's not all revenue today, but it tells you there's already demand behind the business and their RPO has grown massively over time. Now it matters because one of the biggest fears in AI is that the hyperscalers are building too much capacity before demand exists. But if backlog's also growing then the story becomes more balanced.

[00:12:59]Yes, Camix is rising but so is the committed demand. And this is exactly what Morgan Stanley was referring to when they released a note to their clients. They question whether Wall Street is properly valuing Microsoft's future AI revenue. Their argument was that Microsoft may be deploying AI data center capacity ahead of near-term monetization. In other words, capacity is being built now, but the revenue estimates may not fully reflect what that capacity can become. And they estimate Microsoft installed data center footprint could grow from around 5 GW to nearly 20 by FY28. That is a four-fold increase. And if the capacity supports Azour, Microsoft 365, Copilot, Dynamics, LinkedIn security, and AI agents, then the upside case is that today's AI revenue forecasts are just simply too low. And this is where right here, Microsoft is different from many AI companies. Microsoft does not just sell AI infrastructure. It can attach AI to existing products. That matters because Microsoft already has the distribution.

[00:13:59]It doesn't need to build a new customer base from scratch. And Wells Fargo made a similar point. They argued Microsoft may be better positioned at the software layer than the market is giving it credit for. And that's important. Nvidia owns the hardware economics, but Microsoft owns the enterprise software layer. Think about the number of places Microsoft can put AI inside Word, Excel, PowerPoint, Outlook, Teams, GitHub, Azour, Windows, Security, Dynamics, LinkedIn. That is not one AI product.

[00:14:27]That is an AI platform across the enterprise. And if Wall Street is still modeling AI mostly through Azour infrastructure, they may be underestimating the broader monetization layer because Microsoft can potentially monetize AI at both ends. It can sell the infrastructure and it can sell the software interface. That's why the bull case is so powerful. But now let's talk about the biggest risk and the bare case is simple. Microsoft is spending a huge amount of money. Capital expenditure across hyperscalers have exploded.

[00:14:55]Amazon, Google and Microsoft are all spending heavily on AI infrastructure.

[00:14:59]And that is where investors start to get nervous. The question is not whether Microsoft can afford it. They absolutely can. The question is whether returns justify the spend. Because if you spend tens of billions building AI infrastructure, investors eventually want to see revenue, margin, and free cash flow. And the Financial Times chart here captures the concern under the assumptions only Amazon clears a positive return. Microsoft is negative.

[00:15:23]Alphabet is negative. Meta and Oracle look even worse. Now look, I would be careful with this chart. It's based on assumptions and small change in assumptions can change the result. But the point's still valid. AI capex is not automatically good. spending more money does not guarantee higher shareholder returns. If Microsoft builds too much capacity or if AI pricing falls or if customers do not pay enough for co-pilot and AI services, then returns could disappoint. That's the risk. And because Microsoft is still a premium stock, disappointment can hurt the multiple.

[00:15:54]This is why Seeking Alpha still gives Microsoft a valuation grade of F. Not because the company is bad, it clearly is not, but the stock is still expensive relative to the broader sector. So if growth slows, the stock can get punished. That's why AI revenue needs to show up. And this clip is important because it shows how quickly the Microsoft debate has changed. Earlier some investors were worried Microsoft was not investing aggressively enough in capex to drive future AI growth. Now investors are worried that AI capab is too high and returns might not come fast enough. So the debate is flipped and that is why Microsoft is such a fascinating stock today. Well, listen, Scott, first we, as you know, we've owned Microsoft uh a lot over the course of the last few years. I think Satcha and Amy are doing a terrific job, and we'll own Microsoft again, but you have to make choices in this market. We only have so much capital. 80% of our capital has been in memory and logic and compute, you know, companies like Nvidia, companies like SKH, companies like Coreweave, etc. And so that's consumed a lot of capital. The capital has to come from somewhere. And when we looked at Microsoft, right, we we thought they were investing a little less aggressively in capex to drive that future AI growth.

[00:17:03]>> That's what makes the current setup so interesting. Microsoft was once criticized by some investors for not investing aggressively enough. Now Wall Street's asking whether the revenue opportunity from that infrastructure is being underestimated. So the question is not is Microsoft spending too much. The better question is what will Microsoft earn on that spend? If the capex turns into backlog revenue, AI subscriptions, cloud usage and higher switching costs, then the spending may be value creating.

[00:17:30]But if the spend turns into excess capacity, lower pricing and margin pressure, then Microsoft Premium Multiple could compress. That's the entire stock debate. And that is why I don't want to give a lazy answer today.

[00:17:42]Microsoft can be one of the best companies in the world and still not be an automatic buy at any price. Now let's look at what Wall Street is doing.

[00:17:49]Goldman Sachs, as we mentioned earlier, raised their price target for Microsoft to $610 from 600. Not massive movement.

[00:17:56]They've maintained their buy rating and that is a big target. We've got Pibandler who also raised their price target for Microsoft $540 from 500 signing Azour growth. And we've got Stifle who also raised their price target to $415 while maintaining a hold rating is important because not every analyst is screaming by. There is still in fact a debate here. And we've got J&M Securities who initiated coverage at $550 with a market outperform rating and Wells Fargo who raised their price target to $650 around 44% upside. That is the most aggressive of these targets.

[00:18:32]And their key point was Microsoft's position as the software layer. And we can see on average Wall Street's price target $561 indicating 21% upside. Now I never blindly trust these targets. They can chase price. they can be wrong and they often raise targets as the stocks already moved. But when multiple analysts raise targets around the same time, it does tell you that the narrative is changing. Now, let's talk about the newest catalyst. Nvidia is moving deeper into PCs with a new ARMbased chip and Microsoft is part of the story. The idea here is to bring AI capabilities directly into laptops and desktop computers, not only in cloud, locally on the device. And it matters because if AI agents become a new computing layer, Windows could become strategically important. Again, Microsoft has announced the Surface Laptop Ultra with Nvidia RTX Spark inside. Now, I want to be very clear, Surface alone does not move Microsoft's valuation. This is not about one laptop.

[00:19:28]This is about the possibility of a new AI PC cycle. And the RTX Spark chip is designed to run AI agents locally rather than relying on cloud computing. is built around the idea that the PC itself becomes an AI machine. And if that happens, Microsoft has a very obvious role. Windows enterprise deployment, security, identity, co-pilot, office, developer tools. And that is why I want to play the Jensen clip because Jensen's not describing a normal PC upgrade cycle. He's describing a reinvention of the computer. And if even part of that plays out, Microsoft could be more than just an Azour story. Now listen to the language here. This is not just a better chip. This Nvidia saying the PC itself could become an AI agent platform and Microsoft is directly tied to it.

[00:20:14]>> No question this reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone. And so this is the beginning of that journey. He added it's part of Nvidia's effort with Microsoft to reinvent the PC for the AI era after 3 years of collaboration between the firms. The chip is designed to run AI agents locally rather than solely rely on cloud computing, and it's due to be delivered this fall. Now, the clip is exciting, but we have to be careful not to overhype it. A new service laptop is not going to suddenly add hundreds of billions to Microsoft's market cap, but the strategic idea matters because for years, Windows has been seen as a mature business, important, but not the main growth driver. AI agents could change that. If the computer becomes less about clicking apps and more about instructing agents, then the operating system security lay and productivity suite become very important. And this is where Microsoft has a unique advantage. It doesn't need to create the enterprise workflow. It already owns much of it. The questions whether AI agents become useful enough that the business pays more for them. If they do, Microsoft has many ways to monetize. So the Nvidia Microsoft PC news is not the entire thesis, but it does strengthen the broader argument that Microsoft is positioned across multiple AI layers. Cloud AI, enterprise AI, developer AI, productivity AI, and potentially local AI on Windows PCs.

[00:21:40]That is why Microsoft may deserve a premium multiple. Now, let's test whether the numbers support the premium.

[00:21:46]Microsoft profitability is elite. See Alpha gives an A+ profitability grade.

[00:21:50]Gross profit 68%. EBITDAR margin 58, bottomline net income sitting at 39, return on total capital sitting just below 20%, return on total assets 18%.

[00:22:03]These are exceptional numbers for a company this large. Most companies get less efficient as they scale. Microsoft remains extremely profitable and their cash from operations is 170 billion on a trading basis. That's the financial engine that funds everything. AI capex, dividends, buybacks, acquisitions, R&D and reinvestment back into the business.

[00:22:24]And the balance sheet is also strong.

[00:22:26]Microsoft has 78 billion city and cash around 125 billion of debt. For a normal company might sound like a lot, but for Microsoft with this cash flow, it's very manageable. We can also see net debt to EBIT DAR is still low. Net debt capital is also low. So I don't see balance sheet risk here. The real risk is not that Microsoft cannot survive the air race. The real risk is whether returns on AI spending are high enough to justify the valuation. Now, the growth here is not Nvidia level, but for a company this size, it's still very strong. Revenue was up 18% year-on-year.

[00:22:58]Forward revenue sitting at 16%. EBIT DAR growth up 26 expected to climb 22%. And diluted earnings per share was up just below 30 with forward expectations at 18.3. Again, not a small number for a company with a market cap over 3 trillion. That's why the valuation debate is not simple. If Microsoft was growing earnings at 5%, then mid20sp would be too expensive. But if Microsoft can grow earnings in the mid- teens or better, then the valuation becomes more reasonable and analysts expect the EPS to keep rising. Microsoft has a history of beating estimates. So the bull case is that investor paying a premium today for high quality, durable earnings growth. The bare case is that AI Capex pressures free cash flow and margins making that premium harder to defend.

[00:23:43]Now look, Microsoft's not a high yield dividend stock. The yield sits around 081, pretty much sitting at its 5year average. So if you're buying Microsoft, you're not buying it for income. You're buying it for dividend growth, earnings growth, and compounding. But what's interesting, as we've highlighted, the valuation with the forward PE 24 below the 5year at 31. It's a meaningful discount to their own history. Again, not cheap versus the market, but cheaper than what it typically trades at. And because the balance sheet is strong, I'm not worried about the dividend.

[00:24:12]Microsoft has plenty of financial flexibility. The real question is capital allocation. How much goes into AI infrastructure? How much into buybacks? How much into dividends? And how much free cash flow is left after the AI buildout. So now when we look at the valuation with the grading of an F, honestly, relative to the sector, it is understandable. We can see in some instances it trades at a triple digit premium. But compared to their own history, the story is different. As we highlighted, as of today, you're looking around a 15% discount with a forward EV to EBIT sitting at 17.1 again at a discount around 19% to their own 5year around 21. So yes, Microsoft not cheap in absolute terms, cheaper than what it usually trades for and that's why the stock is interesting and as we highlighted, if the earnings estimates are right, the P falls meaningfully over the next few years down to 16.5 by 2029.

[00:25:02]Look, if it delivers the numbers, today's price will look reasonable. But if the estimates get cut in any way, the stock is a lot more vulnerable. Now, let's go through my DCF. And this is where I want to be disciplined because it's easy to fall in love with Microsoft as a business. But the stock still has to make sense. Historically, Microsoft free cash flow has grown strongly. We can see around 25 billion in 2016, most recent years sitting at 76 billion. A huge increase. But we also need to acknowledge that AI capex may pressure free cash flow in the short term. Now in my middle case I'm using 14% growth. Low case sitting at 12, higher end at 16.

[00:25:38]And the free cash flow starting point for 2026 is where analysts come in. We have used their figure and based on this if we use the 14% well by 2034 is expected to climb the free cash flow to 274 billion. It sounds aggressive. But for a company like Microsoft with cloud, AI, enterprise software and productivity tools, it's not impossible. Still, it means the model requires Microsoft to keep executing. And you can see the results of the different cases on the sensitivity 447 lowerend 489 middle and at the higher end 534. At the current price around $460, Microsoft's not massively undervalued.

[00:26:17]We'd say it's around fair value to slightly undervalued. You can see here upside around 6% and the margin of safety day sits at 6%. That's why I cannot call this a screaming bargain.

[00:26:27]Wall Street, however, as we said, they're a lot more bullish. Their average target 561 indicates 22% upside.

[00:26:34]So, yes, my DCF more conservative than Wall Street. That is fine. I'd rather be slightly conservative on a premium mega cap than assume everything goes perfectly. So, here is how I would think about Microsoft overall. Around $447, Microsoft starts to look attractive even on my lowase valuation. At $489, fair value. at 534 it starts moving towards the higher case. So at current levels I'd call Microsoft a hold to cautious buy not a sell not a table pounding bargain but a high quality compounder that is becoming more interesting because the stock has lagged and the valuations below its own historical average. Now the current price sits around $460. If it pulls back to around the low 400s I think the risk reward becomes much more attractive. It falls closer to the lowase DCF value. I'd be more interested, but after a big green day, I wouldn't chase this aggressively.

[00:27:26]When we look at the last 5 days, the stock is up around 12%. The best case for owning Microsoft today is not that it's cheap, is that it's cheaper than usual for a business of this quality.

[00:27:35]And if AI revenue starts showing up faster than expected, the stock could rerate. And the Nvidia Microsoft AIPC news adds another layer. Again, not because Surface alone is huge, but because it shows Microsoft may be positioned in the next computing interface. Cloud AI, enterprise AI, Windows AI, local agents, developer tools, security, productivity. This is a broad AI platform, not a single product bet. But the risk is real. If AI spending does not generate returns, the stock can stay stuck. The market will not give Microsoft unlimited credit forever. And at some point, investors need to see the monetization. So my final verdict is this. Microsoft one of the highest quality business in the world. It's still growing. Margins are elite. Balance sheet is strong. Azour major AI winner. Wall Street raising targets. Bill Aman bought a major position. And the stock has underperformed many AI peers. That creates an interesting setup. But Microsoft is not deeply undervalued based on my DCF at around $460. My fair value is around $489 which only gives a small MOS. So for me, Microsoft is a hold to a cautious buy today. And the key thing I'll be watching is simple.

[00:28:40]Does Microsoft's AI revenue grow fast enough to justify the capex? If yes, the stock can move higher. If no, Microsoft can remain an excellent company, but a frustrating stock. And that's why Microsoft may be one of the most important AI stocks to watch for the rest of 26. If you enjoy the breakdown, make sure you like the video, subscribe, let me know in the comments, would you buy Microsoft stock today or need a bigger pullback first? And don't forget to sign up to the free weekly newsletter. As always, release one copy every single week uncovering severely undervalued stocks and what's gone in the market. More importantly, have a great day. We'll see you all on the next one.