Microsoft's Azure surpassed $100 billion in annual revenue, grew 43% year-over-year, and is guided to roughly 45% growth next quarter. The OpenAI partnership, with IP rights through 2032 and $250 billion in contracted Azure services, gives MSFT a moat AMZN and GOOGL cannot replicate. A $678 billion commercial backlog growing 84% year-over-year outpaces capex concerns, supporting continued accumulation before operating leverage emerges in earnings.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today. I hit the buy button on Microsoft (NASDAQ:MSFT) again last week, and I will hit it again next month.
The stock is down 6.91% over the past year and roughly flat year to date, sitting at $480.35. That is exactly the window I have been waiting for. The consolidation is the invitation.
My conviction rests on a simple read: Microsoft is deep in the expensive phase of an AI infrastructure buildout, and the software monetization on the other side is already landing in the numbers. Once capacity catches up to demand, the operating leverage shows up in earnings. I want to own the shares before that.
The receipts are on the table. Azure crossed $100 billion in full-year revenue for the first time and grew 43% year over year in the June quarter. Microsoft 365 Copilot passed 30 million paid seats, and management guided Azure to roughly 45% growth for the September quarter.
Microsoft is already collecting the AI checks. Commercial remaining performance obligations reached $678 billion, up 84% year over year, with a weighted average duration of 2.3 years. Long-term investors want visibility.
Extract — continue reading at the source.
