Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks on Analysts’ Radar Right Now. On July 21, RBC Capital analyst Rishi Jaluria reiterated an “Outperform” rating on the stock with a $525.00 price target.

Strong demand for its cloud and artificial intelligence (AI) offerings could help Microsoft deliver solid growth in Q4.

Microsoft (NASDAQ: MSFT) continues to provide investors with earnings beats and strong growth in its cloud, AI and gaming segments.

The last division, Intelligent Cloud, is the primary reason most investors are excited about Microsoft. This includes all of its cloud services, namely Azure, and is a massive source of growth for Microsoft. In Q3 FY 2025 (ending March 31), Intelligent Cloud's revenue increased 21% year over year, powered by Azure's growth of 33%.

Investors have backed startups like $300 bln OpenAI in the hope that innovators will grab users and pricing power. But the cost of running artificial intelligence models makes growth costly. Big tech firms that can control data centers and energy supplies may have the upper hand.

Microsoft's Azure drives AI innovation with multi-agent systems and strong cloud integration. Read why I am rating MSFT stock a Buy right now.

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

The US tech industry is undergoing a significant transformation due to the rise of AI, leading to substantial layoffs at major companies like Intel, M

“We believe Microsoft will also hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club,” wrote Wedbush analyst Dan Ives and colleagues in a note to clients, saying they believe the AI-driven tech bull market is still in its early phases.

Google parent company Alphabet’s strong Q2 2025 results were driven by double-digit growth in Google Cloud Platform (GCP), AI infrastructure, and generative AI offerings, according to the company’s executives.

Alphabet's Q2 FY25 results reinforce my bullish stance, driven by AI-led growth in Search that is leading to strong user engagement and importantly,