After a challenging 2022 that saw macroeconomic headwinds trigger a dramatic sell-off, many stocks have enjoyed significant growth this year. The turnaround is primarily owed to a boom in artificial intelligence (AI) that has made Wall Street bullish about tech stocks again.

Microsoft (MSFT -0.73%) emerged as one of the most exciting AI companies in 2023 thanks to a lucrative partnership with the firm behind ChatGPT and endless opportunities to monetize its AI venture. Meanwhile, a recent acquisition in its video games division could offer consistent boosts to revenue over the long term. 

As the world's second-most valuable company with a market capitalization of $2.5 trillion, Microsoft has a long history of rewarding patient investors. Consistent growth and a promising outlook make Microsoft's stock an attractive option. So, here's why if I could only buy one stock right now, Microsoft would be it.

It arguably has the most earnings potential in AI

Competition has grown fierce in AI this year, with companies in all corners of tech pivoting their businesses to the high-growth industry. The technology's potential is seemingly endless, with possible applications in everything from cloud computing to consumer tech, healthcare, manufacturing, education, and more. 

Behemoths of the tech world such as Alphabet and Amazon have growing ventures in AI and will likely enjoy boosted earnings over the long term as the market develops. However, Microsoft arguably has the most earnings potential from the sector out of any of these companies for multiple reasons. 

For one, Microsoft got a head start in the market thanks to its 49% stake in ChatGPT developer OpenAI. The company holds exclusive licenses on several of the start-up's AI models, including the one responsible for ChatGPT. The partnership has allowed Microsoft to be one of the first companies to bring AI features to its various products, snapping up market share ahead of its peers. 

Additionally, Microsoft is the biggest name in productivity, with brands like Word, Excel, Outlook, and more used by millions of businesses and consumers daily. In fact, its Microsoft 365 subscription service grants access to all of these services and hit revenue growth of 13% year over year in the company's fiscal 2023 (ended in June).

Microsoft is cashing in on its productivity dominance by introducing AI features across its product lineup, including an AI assistant that will soon launch as a $30 monthly add-on to a 365 subscription. 

Lastly, Microsoft has massive earnings opportunities with its 22% market share in cloud computing. Azure is the second-largest cloud platform after only Amazon Web Services. With the power of ChatGPT and OpenAI's technology, it could increase its position in the industry by attracting more customers to its AI tools. 

Amazon is leading the cloud market, with Alphabet home to several popular productivity services. However, neither has the dominant positions in both industries that Microsoft does, not to mention a powerful stake in a company like OpenAI. Microsoft has massive potential in AI, making it one of the best ways to invest in the budding industry. 

It's expanding into other areas of tech

In addition to a bright future in AI, Microsoft has strengthened its long-term outlook with its recent acquisition of game developer Activision Blizzard for a record $69 billion. Microsoft announced its purchase early last year but was only able to finalize the deal this month. The acquisition was held up over antitrust concerns. However, the U.K., the last regulator necessary for the deal to complete, finally gave its approval in mid-October. 

Buying Activision unleashes countless growth opportunities for Microsoft's Xbox brand. The game developer is home to a lucrative game library that includes one of the most profitable franchises in history, Call of Duty. Last year's installment to the series, Call of Duty: Modern Warfare II, hit $1 billion in sales in its first 10 days.

Microsoft has said Call of Duty will not become exclusive to its consoles. However, adding the franchise to its Xbox Game Pass subscription service could significantly boost earnings in the form of new members and console sales. The series' popularity will strengthen Microsoft's fight in the console wars with Sony's PlayStation 5.

Millions of Call of Duty fans will find it challenging to choose a PlayStation and pay for the games separately when an Xbox console and Game Pass will allow them to pay a small monthly fee for access to all old and new games in the series. Along with the many other popular titles in Activision's game catalog, Microsoft could have a lucrative future in video games. 

Microsoft's forward price-to-earnings ratio of 30 may not be a massive bargain. But matched with its solid long-term outlook, the company's stock is a screaming buy right now.