Should You Buy Microsoft (MSFT) For Long-Term AI Gains?

We recently published 10 Best AI Stocks to Buy According to American Politicians. Microsoft Corp (NASDAQ:MSFT) is one of the best AI stocks to buy.

Congresswoman Marjorie Taylor Greene piled into Microsoft Corp (NASDAQ:MSFT) on Oct. 24 by acquiring a position worth between $1,001 – $15,000. US Representatives Ro Khanna and Gilbert Ray Cisneros, Jr. also bought Microsoft Corp (NASDAQ:MSFT) shares in September. MSFT recently reported strong quarterly results as its Azure cloud business grew about 40% year over year. For context, Amazon's Q3 AWS revenue growth came in at 20%, while Google Cloud rose 34%.

Photo by Microsoft Edge on Unsplash

Wedgewood Partners stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its third quarter 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) has also spent quite heavily on capex over the past several years, having stood up more than 2 gigawatts of data center capacity over the past 12 months alone, yet it has also produced very attractive cash low returns. It exited its fiscal 2025 with almost $370 billion in gross property plant and equipment and capitalized leases, up a remarkable $260 billion from fiscal 2020. Meanwhile, gross cash low grew from $60 billion a year in 2020 to more than $140 billion per year in 2025. When we add in the rest of the assets on Microsoft’s balance sheet, we calculate its gross cash lows to be a consistent returns on capital in the high 20s. That is an extraordinary attractive return for such massive amounts of investing.”

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.