Microsoft (MSFT) Named Top Large-Cap Software Pick by Morgan Stanley

Core Insights - Microsoft Corporation (NASDAQ:MSFT) is recognized as a leading AI stock, with Morgan Stanley maintaining it as a top pick in large-cap software due to strong demand and operating margin growth prospects [1][2] Group 1: Demand and Growth Prospects - Morgan Stanley's analyst Keith Weiss expressed confidence in Microsoft's robust demand, predicting durable mid-teens top-line growth and increased ROI contributing to operating margin expansion [2] - Azure AI's gross margins are currently around 20%, with expectations to rise to 30% by FY29 and potentially exceed 40%, indicating significant upside potential [2] Group 2: Investment Returns and Efficiency - The firm highlighted attractive returns on AI investments, noting that Azure AI margins are already positive and there is a strong focus on driving continued efficiency [3] - Microsoft develops a diverse range of software, cloud services, devices, and business solutions for individual and enterprise customers globally [3]