Is Bill Gates #1 Stock a Buy or Sell?

Bill Gates is perhaps one of the most famous businessmen to ever walk the earth. The Microsoft The ( NASDAQ:MSFT ) co-founder has consistently been the world’s richest person for most of the past two decades, though his net worth has recently lagged behind other CEOs who have held onto their stocks and seen their values ​​rise.

Microsoft stock remains Bill Gates’ most prominent holding, although the former CEO of the software and cloud giant has diversified his portfolio into other growth stocks of late. Through the Bill & Melinda Gates Foundation as well as Cascade Investment, he has built a notable portfolio of a number of stocks we’ve covered in the past.

But given that most of Bill Gates’ current net worth can be derived from his Microsoft holdings, I think it’s a good idea to jump into this stock. We can think all we want about how rich Gates would have been if he’d let it all ride, but his drive for diversification is one I don’t think should be pigeonholed. Let’s focus on Microsoft and where this stock could be headed from here.

Key points about this article:

• Microsoft is the largest company in the world by market capitalization, making Bill Gates (the company’s co-founder) a very rich man.
• Let’s look at the long-term outlook for Microsoft and where this stock could be headed from here.
• If you’re looking for action with huge potential, be sure to grab our free copy brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

Microsoft is betting big on AI

Microsoft continues to invest heavily in the AI ​​revolution and seems to be among the companies that want to build a moat around this business. In addition to the software and cloud services company’s cash-cow lines of business, there are a number of other higher growth opportunities the company has pursued in recent years, including its multibillion-dollar agreement to acquire a stake big in AI leader OpenAI. .

Among the latest news in the world of big investments in artificial intelligence is the one recently announced by Microsoft. EUR 4.3 billion ($4.75 billion) investment. to expand its cloud and AI data centers in Italy over the next two years. This move will be the largest initiative in the country and will further expand Microsoft’s influence across the globe.

The company expects to train more than one million Italian workers in the next few years. This move has garnered support from government officials and appears to be a move for the company to further increase its global foothold and continue to dominate European markets in the long run as well.

Investors continue to love MSFT stock

As a leading global technology company, Microsoft specializes in productivity applications, cloud services and personal computing products. CEO Satya Nadella has done it consistently ASSIGNED the company’s strong financial performance on its competitive platforms.

In the company’s fourth quarter resultsMicrosoft posted revenue of $64.7 billion, up 15% year over year. In particular, the company’s cloud services division generated the lion’s share of this revenue ($36.8 billion), which was up 21% year over year. As Microsoft continues to invest heavily in AI, analysts expect the company’s Azure OpenAI service to gain 60% more customers. If that’s the case, there’s a lot to like about how Microsoft is positioned for growth within its core software business as well.

Analysts seem to agree Mizuho recently maintaining a positive outlook on MSFT stock with a price target of $480. With Microsoft announcing yet another $60 billion share buyback and an 11% dividend increase, there’s a lot to like about the risk-reward with this global tech giant right now.

Microsoft remains a growth stock to own for the long term

Microsoft’s multi-billion dollar acquisitions include Activision Blizzard for $69 billion in 2023GitHub in 2018 and LinkedIn in 2016. Now, with major investments in artificial intelligence dominating the headlines, Microsoft is clearly in a position to dominate any business in which it intends to become a dominant player. This is part of the allure of this mega-cap company.

In my view, Microsoft remains a top tech stock that commands a significant market premium, for good reason. This stock isn’t cheap, but few on the market are now. However, in the long term, I believe the company’s valuation will definitely become more suitable for value-conscious investors.

This is a stock I think is worth holding on to for those who already own it, and to hold over time for those who might be concerned about falling multiples. That said, I don’t see Microsoft’s growth slowing down anytime soon. If ever there was a safe harbor in the tech space, Microsoft is about as close to that ideal as it gets. This is a major reason why this stock is trading at the premium it is.

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