Is Microsoft Corporation (MSFT) the Most Profitable Software Stock to Buy Right Now?

Is Microsoft Corporation (MSFT) the Most Profitable Software Stock to Buy Right Now? Rameen Kasana Thu, July 2, 2026 at 1:28 PM GMT+2 2 min read MSFT Microsoft Corporation (NASDAQ: MSFT ) is among the most profitable software stocks to buy right now . As of June 30, Microsoft Corporation (NASDAQ:MSFT) stock has declined by approximately 19% in June.

As highlighted by The Business Times on June 29, the company's shares are entering their worst month since the dot-com era. This is due to investors' concerns about the company's position in the AI-driven landscape. "Microsoft is getting hit on two sides with worries about both AI spending and AI disruption," stated Jack Ablin, the Chief Investment Strategist at Cresset Wealth Advisors.

"While it looks like a pretty good deal with the valuation so low, I'm getting the sense that investors are shooting first and asking questions later. " What's even more alarming is the company's capex projections, as Microsoft Corporation (NASDAQ:MSFT) forecasts US$190 billion in capex through the end of December. This is higher than the Street's estimates.

The company's strong profit margin of 39. 34% positions it as one of the most profitable software stocks to buy right now. Deutsche Bank Reiterates Buy on Microsoft (MSFT)—AI Driving Double-Digit Efficiency Gains 2nix Studio / Shutterstock.

com Earlier, on June 25, Stifel trimmed the company's price target to $400, noting that Street FY27 gross margin estimates are on the high end. The firm noted the company's mid-to-upper single-digit guidance for operating expense growth "given ongoing R&D investments. " Microsoft Corporation (NASDAQ:MSFT) is a Washington-based company operating through Productivity and Business Processes, Intelligent Cloud, and Personal Computing segments.

Founded in 1975, the company provides software, services, devices, and solutions worldwide. While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

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