--- title: "‘Not If, but When,’ Says Top Investor About Microsoft Stock" type: "News" locale: "en" url: "https://longbridge.com/en/news/299065198.md" description: "Top investor JR Research rates Microsoft (MSFT) as a Buy, citing strong fundamentals and Azure's $100 billion annualized revenue run rate. Despite recent stock recovery to ~$500, JR highlights potential compute capacity expansion to 38 GW by 2032, signaling confidence in long-term AI demand. With Copilot adoption stabilizing and valuation below historical averages, the analyst views the risk-reward as favorable for investors looking to double down before further re-rating." datetime: "2026-09-15T14:23:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299065198.md) - [en](https://longbridge.com/en/news/299065198.md) - [zh-HK](https://longbridge.com/zh-HK/news/299065198.md) generator: "portal-rs" --- # ‘Not If, but When,’ Says Top Investor About Microsoft Stock **Microsoft (NASDAQ:MSFT)** stock has made an impressive recovery from its early summer lows and is now trading around $500, putting it fairly close to its previous record highs. After facing negative sentiment regarding its AI positioning, the rebound reflects renewed confidence in the company’s cloud and AI prospects. Azure growth has been a major part of that recovery, while Microsoft’s broader software platform gives it multiple ways to benefit as businesses adopt AI agents and other advanced workloads. The bigger question now is whether Microsoft is prepared to spend aggressively enough to meet future demand. According to investor JR Research, who ranks among the top 2% of investors on TipRanks, the answer appears to be yes. JR believes the company’s latest signals point to a much more bullish view of long-term compute requirements than investors might have expected. JR points to a recent Bloomberg report that suggests Microsoft could roughly triple its total compute capacity, from about 12 gigawatts today to as much as 38 GW by 2032. That figure includes both Microsoft-owned and leased facilities, so it should not be interpreted as a direct forecast for capital expenditure. Still, JR sees it as an important indication that Microsoft expects demand for computing power to remain strong for years. The shift is notable because Microsoft had previously appeared more cautious about adding capacity, particularly amid concerns that the AI infrastructure boom could eventually create excess supply. JR believes that stance is changing as monetization opportunities become clearer and capacity constraints remain an issue. Copilot is one reason for that confidence. Usage appears to be stabilizing, giving Microsoft a stronger foundation for expanding consumption and pricing over time. That makes a larger infrastructure commitment easier to justify because the company has more visibility into how the additional capacity can generate revenue. Azure is also becoming harder for investors to overlook. Microsoft has disclosed that the cloud business has surpassed a $100 billion annualized revenue run rate, up from roughly $75 billion a year earlier. JR sees the decision to highlight Azure separately as a sign that Microsoft is ready to put its cloud growth opportunity more firmly in the spotlight. There are still risks to the investment case, however. A much larger compute buildout could weigh on free cash flow margins and keep pressure on Microsoft’s valuation until management provides more detail on the pace and economics of that spending. The company also remains heavily exposed to OpenAI, although its platform now supports around 11,000 models, giving it broader exposure across the AI ecosystem. Even after the rally, JR believes the fundamental picture remains attractive. Microsoft trades at a little over 25 times forward earnings, below its roughly 30x average over the past five years. “The overall risk-reward remains favorable across its fundamentals, margins, visibility, and copilot adoption,” the 5-star analyst summed up. “It positions the stock well in the next pullback for investors who are looking to double down before the re-rating advances further.” Accordingly, JR rates the stock a Buy. (To watch JR Research’s track record, click here) That is also the overwhelming opinion on Wall Street. The stock claims a Strong Buy consensus rating, based on 33 Buys vs. 1 Hold. Going by the $571.41 average price target, shares will be changing hands for a 14.5% premium a year from now. 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