With the tech sector seeing companies compete amid the ongoing AI boom, several are set up for long-term success. Despite the 175% surge from Nvidia (NVDA) in 2024, there could be one company set to outperform them in the coming year. Indeed, Microsoft (MSFT) is a stock that could be on pace to hit a $500 price in 2025
There is no shortage of reasons to be optimistic about Microsoft’s potential in the coming years. Although competition has been growing, it is situated to dominate the growing demand for AI and cloud-based computing products. But can it break through to set a new all-time high over the next 12 months?
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Microsoft Looks to Continue Winning Trend, Hit All-Time Mark in 2025
Microsoft has long been a premiere tech stock. One of the key competitors in the software development space, it has become a fixture throughout Wall Street as a solid buy option. That has only increased this year as it made notable strides in some of the most popular sectors with investors.
The stock has been viewed in high regard for decades. For context, if someone had invested $1,000 in Microsoft’s IPO, they would have $4.38 million today. These facets ensure it stands as one of the world’s top companies. With some impressive things on the horizon, does this open the door for Microsoft (MSFT) to hit a $500 price in 2025?
The biggest development for the company has been its Azure business. Cloud based computing has become increasingly popular, and the Microsoft-led option has become an industry leader. Its rise to prevalence has been a massive reason behind continuing its 222% revenue increase over the last ten years.
Azure, AI Development Look to Fuel Quest to $500 High
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Microsoft’s cloud endeavor has grown 18% annually, with profits increasing from $37.99 billion in 2023 to $8.44 billion this year. As it looks to the next year, Microsoft Office, Dyanmics 365, and its LinkedIn products will be key to focus on. Right now, they make up one third of its entire venue.
The company has dominated the office software market, and that doesn’t look to be changing. Additionally, its investments into OpenAI, Azure, GitHub, and SQL represent nearly half of its revenue. With Azure consisting of 30%, it is clearly the most important facet of the stock if it looks to keep growing next year.
The prospect looks good, as most experts project a $490 price point by the end of the year. If it can tonintu to fend off completion from Nvidia and Amazon (AMZ), the $500 price becomes well within reach. Such a surge would have MSFT enjoying an all-time high, beating gout its $466 landmark price set this year.