Morningstar: Software Stocks at 3-Year Low Valuation, Microsoft Tops AI Buys

Morningstar commentary declares enterprise software stocks the most undervalued in three years, spotlighting Microsoft as a prime AI beneficiary with its 27% OpenAI stake, Copilot integrations, and trailing P/E of 26.5 versus the tech sector's 43 average. Salesforce impressed with Q4 sales up 12% to $11.2B, EPS up 37% to $3.81, and Agentforce ARR surpassing $800M (up 169%). Alphabet's Google Cloud grew 48% to $17.7B, fueled by Gemini and AI capex. The bullish outlook suggests rotation into large-cap software names as AI adoption accelerates, potentially driving re-rating and upside.