
Microsoft's accelerating cloud growth and NVIDIA's unmatched hardware dominance in the AI era mean investors are getting rock-solid earnings power at multiples that look very reasonable relative to their long-term growth trajectories.
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
| Revenue (TTM) | $331.84B |
| Gross Profit (TTM) | $225.47B |
| EBITDA | $194.24B |
| Operating Margin | 45.10% |
| Return on Equity | 34.00% |
| Return on Assets | 14.10% |
| Revenue/Share (TTM) | $44.67 |
| Book Value | $59.56 |
| Price-to-Book | 8.35 |
| Price-to-Sales (TTM) | 11.05 |
| EV/Revenue | 11.08 |
| EV/EBITDA | 17.72 |
| Quarterly Earnings Growth (YoY) | 31.70% |
| Quarterly Revenue Growth (YoY) | 17.70% |
| Shares Outstanding | $7.43B |
| Float | $7.41B |
| % Insiders | 0.09% |
| % Institutions | 75.80% |
Volatility is currently contracting

Microsoft's accelerating cloud growth and NVIDIA's unmatched hardware dominance in the AI era mean investors are getting rock-solid earnings power at multiples that look very reasonable relative to their long-term growth trajectories.

MSFT's cloud and AI momentum, broad enterprise adoption and durable growth outlook give investors reasons to hold despite its 31.2% surge.

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Microsoft (MSFT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Microsoft maintains a bullish outlook, leveraging entrenched enterprise relationships and cloud demand to drive commercial growth and recurring revenues. MSFT's bundled offerings, such as the E7 suite, lower adoption barriers and capitalize on renewal cycles, enhancing customer stickiness without requiring operational overhauls. I forecast FY revenue of ~$390B and EPS of ~$19.30, with a 46% operating margin, and see an 18% upside to $579 per share at a 30x multiple.

Shares of Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) are climbing in Friday morning trading while two mega-cap technology peers slip and the broad sector barely moves. Alphabet stock is up 3% to $357.

Mustafa Suleyman, Microsoft AI CEO, joins 'Squawk Box' to discuss the company's code of conduct for AI models, growing AI safety concerns, whether the technology can be controlled, product liability for AI companies, and more.

These five dividend stocks, including JPMorgan Chase, Microsoft and Argan, have raised payouts repeatedly, offering investors income amid market uncertainty.
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