Microsoft's Investment Success and Future Goals

Microsoft Corporation (NASDAQ:MSFT) represents 27.27% of Bill Gates’s stock portfolio and is among his top 15 stock picks.

On October 29, 2025, Microsoft Corporation (NASDAQ:MSFT) announced its first-quarter results for fiscal year 2026. This quarter included both the promises and costs of AI-enabled cloud expansion.

Microsoft Corporation’s capital expenditures reached a record level of over $35 billion during the quarter, exceeding Wall Street estimates. The company is investing in AI infrastructure to alleviate capacity issues that have constrained the growth of Azure. This investment has started to pay off, as Azure exceeded expectations with an annual revenue growth of 40%. Meanwhile, total revenue increased by 18% to $77.77 billion, and earnings per share rose to $3.72, surpassing both estimates.

This success in the third quarter continued with the company announcing on November 3 that it would make a total investment of $15 billion in the United Arab Emirates. Having already invested $7.3 billion between 2023 and the end of 2025, Microsoft Corporation (NASDAQ:MSFT) indicated it would make an additional investment of $7.9 billion in this context. Furthermore, it received approval to export Nvidia chips from the United States, which will assist in expanding AI data centers in the United Arab Emirates.

Microsoft Corporation (NASDAQ:MSFT) focuses on developing and supporting software, services, devices, and cloud-based solutions on a global scale.

While acknowledging Microsoft’s potential as an investment, we believe that some AI stocks offer higher return potential and carry less risk. If you are looking for a highly undervalued AI stock that could significantly benefit from Trump-era tariffs and repatriation trends, you can check out our free report on the best short-term AI stocks.