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Microsoft Labeled Deep Value Stock at 23x Amid $37B AI Run Rate

Microsoft shares have fallen nearly 20% year to date through mid-June, yet analysts increasingly frame the stock as a deep-value opportunity. Strong fiscal Q3 results showed Azure growing 40%, total cloud revenue reaching $54.5 billion, and the AI business hitting a $37 billion annualized run rate, up 123% year over year. Despite heavy capex, insider selling, and hedge-fund divergence, the 23x forward earnings multiple is viewed as attractive relative to growth visibility and a $627 billion backlog. Recent commentary from CEO Nadella on building proprietary “token capital” has reinforced the long-term AI monetization narrative.

Category

Microsoft

Sentiment

Neutral

Event

Market commentary

Reading time

1 min