Few, if any, topics have consumed the business world over the past couple of years quite like artificial intelligence (AI). It has transformed many businesses and their trajectories, as well as brought in investors eager to take advantage of what's called the biggest technology revolution since the internet.
That said, you don't want to let the promise of AI cause you to invest in just any AI stock out of pure speculation or chasing the hype. If you're searching for an AI stock that is a great buy right now, look no further than Microsoft (MSFT +0.21%).
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Although Microsoft may not be a pure-play AI company in the way some emerging companies are, its business has much more to gain from AI advancements than most others. This is particularly true when it comes to its software ecosystem. It has Office tools (Excel, Teams, PowerPoint, Word, etc.), Windows, and its cloud platform, Azure.
Microsoft already has a stronghold on enterprise productivity and collaboration software that many companies depend on for their daily operations. Being able to seamlessly integrate AI into these tools can increase their appeal and strengthen Microsoft's position in the enterprise software world.
NASDAQ: MSFT
Key Data Points
In its latest quarter, Microsoft's "Productivity and Business Processes" segment generated $33.1 billion in revenue (43% of total revenue), which was up 16% year over year. For perspective, that's more than PayPal's total revenue over the past four quarters. It's big business.
Microsoft's business has proven that even without AI being the main selling point, it can be successful and thrive long-term. That's the type of AI company investors should focus on to ensure they're set for the long haul, not just while AI hype is strong.
