Microsoft Corporation (NASDAQ: MSFT ) is one of them The best technology stocks to buy for the long term. On March 5, Jefferies reiterated a Buy rating on Microsoft Corporation (NASDAQ: MSFT ) with a $675 price target. The company reaffirmed its bullish sentiment after meeting with Microsoft’s head of investor relations.
The company said in a research note that the company’s Azure and Microsoft 365 provide key factors in strengthening its enterprise AI spending. Microsoft 365 alone serves more than 450 million paying users, reflecting a strong enterprise distribution network. In addition, Jefferies also identified three main areas of strength for the company including the company’s focus on expanding the entire addressable market of Microsoft 365 using AI, the AI margin at a comparable growth stage beyond the cloud margin, and reliable infrastructure monetization regardless of specific AI agents or models.
Pixabay/Public Domain
Jefferies also noted that the company trades at around 21 times fiscal 2027 earnings per share. It is 23.5 times lower than the 10-year average, thus making it an attractive investment. The company further clarified that Microsoft should not be trading at a 10-year low of around 15 times future earnings given the expanded platform capabilities over the course of the decade.
Microsoft Corporation (NASDAQ: MSFT ) is an American technology company specializing in AI-powered cloud, productivity and business solutions. The company develops and markets software, services, and hardware.
While we accept the potential of MSFT as an investment, we believe that some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read more: The 40 most popular stocks among hedge funds heading into 2026 and 10 unstoppable stocks that can double your money.
Disclosure: None. Follow the inside port on Google News.
