Microsoft Corporation (MSFT): A Bull Case Theory

5 days ago 6

Ricardo Pillai

Thu, December 4, 2025 astatine 11:21 AM CST 3 min read

We came across a bullish thesis connected Microsoft Corporation connected Nikhs’s Substack. In this article, we volition summarize the bulls’ thesis connected MSFT. Microsoft Corporation's stock was trading astatine $486.74 arsenic of December 1st. MSFT’s trailing and guardant P/E were 34.99 and 31.45 respectively according to Yahoo Finance.

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Microsoft’s Q1 FY26 results confirmed the “Great Re-Integration,” wherever enterprises are abandoning fragmented “best-of-breed” architectures and paying a premium for a single, integrated spouse to power the risks of “jagged intelligence.” With bookings up 112% and a $392 cardinal backlog, Microsoft’s integrated AI stack has go the default endeavor platform. Its strategy is not to triumph purely connected infrastructure oregon models but to predominate the “Cockpit”—the security, identity, and compliance furniture that enterprises trust connected to safely deploy AI.

This “Control Premium” has go Microsoft’s deepest moat, creating lawsuit lock-in beyond show oregon outgo advantages. The institution is backing this translation with an bonzer $35 cardinal quarterly CapEx—entirely self-financed done $45 cardinal successful operating currency flow—positioning it arsenic 1 of lone a fewer firms capable to prolong this scale. Despite dense investment, Microsoft maintained 49% operating margins and guided unchangeable profitability, signaling pricing powerfulness and unmatched efficiency.

Enterprises are committing semipermanent contracts to unafraid AI capacity, validating that hazard absorption present outweighs modular flexibility. Competitors specified arsenic Google and AWS remain relevant done TPU economics and developer neutrality, yet Microsoft wins the boardroom by selling control. The parallel to its 1998 “Server & Tools” playbook is clear: the institution again leads by simplifying complexity done integration.

AI’s unpredictability demands trusted orchestration, and Microsoft’s unified power stack provides it. The Q1 results beryllium integration is not a mentation but a measurable lawsuit decision, making Microsoft’s “Control Premium” the defining moat of the AI epoch and signaling a structural displacement successful endeavor computing.

Previously we covered a bullish thesis connected Microsoft Corporation (MSFT) by Ray Myers successful May 2025, which highlighted the company’s dominance successful endeavor software, gaming, and unreality computing done Azure. The company’s banal terms has appreciated astir by 7.41% since our coverage. This is due to the fact that the thesis has played out. Nikhs shares a akin presumption but emphasizes Microsoft’s “Control Premium” and integrated AI-driven endeavor strategy.