Home Run Alert: Why Microsoft Stock Is Your MVP Pick for 2024!

Stocks to buy

It’s funny to think that Microsoft (NASDAQ:MSFT) was once best known for Windows 95. Today, the company isn’t just a legacy tech business; it’s a top-tier contender in cloud computing and artificial intelligence. Truly, the MSFT stock outlook is bright and there are few better picks for 2024, tech-sector or elsewhere.

Granted, it may feel like the opportunity has passed now, especially after the epic run-up in Microsoft stock. Yet, there are always new horizons for Microsoft to explore, and you’ll surely be amazed when you discover what the CEO has in mind.

MSFT Stock Doesn’t Respond to Cloud-Revenue Growth

There are several ways to interpret Microsoft’s fourth-quarter 2023 results. Wedbush analyst Dan Ives called it a “masterpiece quarter” for Microsoft, and I tend to agree. Yet, Microsoft stock went nowhere despite the company’s unmistakably positive data. 

The real “masterpiece,” as I see it, was Microsoft dazzling 30% year-over-year cloud-business revenue growth. If there were any doubts about Azure’s place in the cloud market, those doubts can now be put to rest.

Microsoft posted top-line and bottom-line beats for Q4 2023, exceeding Wall Street’s consensus calls for revenue and EPS. And of course, Microsoft CEO Satya Nadella mentioned AI multiple times, which I think might be required by law now:

“We’ve moved from talking about AI to applying AI at scale… By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

If MSFT stock didn’t move despite Microsoft’s expectation-topping results and outstanding cloud-business performance, that’s actually not bad news. Really, it’s just an opportunity to buy the stock while the skeptics ponder and hesitate.

This Plan From Microsoft’s CEO Will Surprise You

Given the aforementioned quote about AI from Nadella, it’s no surprise that the Microsoft CEO has big plans to push the envelope of AI technology. However, you’ll certainly be amazed to learn to Nadella intends to source fresh talent in the AI-tech field.

Did you ever imagine that Microsoft would, in effect, build a 2-million-person army of AI technicians? Believe it or not, Nadella has plans for Microsoft to train 2 million people in India on AI and other technologies by 2025.

Microsoft emphasized the benefits for India’s population, stating, “India needs a skilled workforce that can use AI to solve complex problems and create value.” Don’t get the wrong idea, though.

Without a doubt, Microsoft’s management is seeking long-term benefits from this program. After all, if the company can train young, knowledge-hungry tech talent today, Microsoft could position itself as the world’s unbeatable AI-market dominator in a few years.

Microsoft Stock Outlook: Swing for the Fences!

Now, you have an idea of why my MSFT stock outlook is so positive for 2024. The quarterly results are indisputable: Microsoft is a cloud king and a powerful AI-tech competitor. Plus, it might only be a matter of time before the company has an army of trained AI experts.

So, don’t just try to hit singles and doubles this year. Buy some Microsoft shares and aim for a grand slam by beating earnings, becoming a cloud champion, and potentially dominating AI.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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