MSFT is by far the best AI stock to own right now

- Microsoft trades at 25x earnings, making it one of the cheapest AI stocks. - Microsoft maintains a more conservative capex plan than its competitors, mitigating risks of overbuilding. - Microsoft has very diversified revenue sources compared to competitors like Google or Meta, which make the overwhelming majority of their profit from ads. - In addition to Microsoft's 27% equity stake in OpenAI, Microsoft negotiated an uncapped 20% REVENUE share through 2032. This applies to everything OpenAI sells. Subscriptions, Enterprise API usage, ads, etc. This means that even as OpenAI remains unprofitable, burning cash, and diluting shareholders via new funding rounds, Microsoft is still profiting off of a rev share agreement that can't be diluted. - With OpenAI growing revenues 3x YoY and no signs of stopping(ads will be a huge boost), the value of this revenue sharing agreement could be well in excess of $100 Billion, and the equity stake over $200 Billion. - OpenAI 's API must be run through Microsoft Azure, and OpenAI has also committed to a lot of Azure spending, locking in Azure revenue growth for years. The strategic value of this cannot be understated; API revenues will skyrocket as more applications implement OpenAI models and roll out these AI features to users. Price target: $575