3 Reasons to Buy This Unstoppable Artificial Intelligence (AI) Stock Before It Soars Well Past $4 Trillion, According to Wall Street

Core Insights - The rise of artificial intelligence (AI) has significantly increased the market valuations of major technology companies, with Nvidia reaching a valuation of $4.56 trillion and Microsoft close behind at $3.84 trillion [1][2]. Group 1: Microsoft’s Revenue Pipeline - Microsoft reported remaining performance obligations of $368 billion, a 37% increase from the previous year, indicating a strong revenue pipeline tied to its Azure cloud platform and Microsoft 365 services [3][4]. - The growth in Microsoft's backlog is comparable to Alphabet and outpaces Amazon, suggesting sustained revenue growth potential [4]. Group 2: Cash Flow and Financial Strength - Microsoft generated over $33 billion in sales from its Productivity and Business Processes segment, with a 16% revenue increase last quarter [7]. - The company achieved a record free cash flow of $25.6 billion despite significant capital expenditures, allowing for continued dividends and share buybacks [8][9]. - Microsoft's free cash flow exceeds that of Alphabet and Amazon, positioning it favorably compared to competitors [9]. Group 3: AI Monetization Opportunities - Microsoft has over 430 million Microsoft 365 users, providing a substantial base for monetizing AI services like Copilot [10][11]. - The company is well-positioned to leverage AI capabilities within Azure, facilitating enterprise transitions to the cloud and enhancing contract sizes [12][13]. - AI is expected to drive strong revenue growth across Microsoft's segments for the foreseeable future [13].