‘Keep This Winner,’ Says Top Investor About Microsoft Stock

If the first few months of 2025 could be characterized by widespread turmoil and uncertainty within the tech sector, the past few weeks have given way to a more optimistic vibe. Like other tech companies that started the year on a downward trend, Microsoft (NASDAQ:MSFT)’s share price has been floating upwards once more.

Indeed, worries about trade-related turbulence provided a series of shocks to the market, none greater than the post-April 2 Liberation Day drop for stocks large and small. However, in the subsequent weeks both the U.S. and China seem to be backing away from the abyss, while the first bilateral treaty of the Trump administration between the U.S. and the United Kingdom was announced earlier this month.

While these developments have contributed to a rosier outlook overall, Microsoft helped itself by delivering a strong FY 2025 Q3 earnings report at the end of April. Revenues grew to $70.1 billion for the quarter, up 13% year-over-year, while operating income of $32.0 billion represented an increase of 16% year-over-year.

Microsoft’s share price has risen some 16% since the earnings report, and the company is now up almost 10% year-to-date.

For top investor Julian Lin, the positive earnings report was further evidence that Microsoft is one to stick with during good times and bad.

“In a world of uncertainty, investors may be looking for reliability. MSFT has proven time and time again that it has a resilient growth engine while balancing growth and profitability,” explains the 5-star investor, who is among the very top 1% of TipRanks’ stock pros.

Lin spotlights Azure’s “impressive” revenue growth of 33%, a strong indication that software and cloud computing are sheltered from much of the tariff trepidations.

Though Microsoft trades at more expensive multiples than its peers, Lin believes that its scale, profitability, and reliability justify this premium.

“While not the cheapest tech stock, I see a clear path for 13% to 15% forward returns for many years to come,” adds Lin.

In other words, even after the recent uptick, Lin does not deem it too late to jump on board.

“The stock’s recent rally may have reduced its multiple expansion potential, but I still see a clear case for solid double-digit returns ahead,” concludes Lin, who rates MSFT a Buy. (To watch Lin’s track record, click here)

Wall Street heartily concurs. With 30 Buy and 5 Hold ratings, MSFT boasts a Strong Buy consensus rating. Its 12-month average price target of $509.41 has an upside in the low double digits. (See MSFT stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.