Bill Ackman is making another major Big Tech bet. The billionaire investor revealed on Friday that his Pershing Square Capital Management fund has built a new position in Microsoft (MSFT), while also making the stock a core holding in his newly launched PSUS fund. Ackman described Microsoft’s recent pullback as a “highly compelling” buying opportunity for long-term investors.
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Forget margin or options. Here's how the pros trade AMZNFollowing Ackman’s comments, Microsoft shares inched higher in early trading on Friday.
The move comes as Microsoft stock has faced pressure this year amid concerns that the company could be losing some of its early AI lead to newer rivals such as Anthropic. Investors have also become more focused on Microsoft’s massive AI spending plans and questions around Azure’s long-term growth. Notably, MSFT stock has declined 15% year to date.
Ackman Thinks Wall Street Is Missing Microsoft’s AI Advantage
Ackman argued that investors are underestimating the strength of Microsoft 365. He said the software remains deeply integrated across large businesses through security, identity, compliance, and enterprise data systems. According to Ackman, these advantages make Microsoft far harder to disrupt than standalone AI software companies.
The billionaire investor also defended Microsoft’s planned $190 billion spending budget for 2026, which has recently raised concerns among some investors. Ackman said the spending should be seen as a long-term bet on growing AI and cloud demand. He compared it to earlier heavy spending periods at Amazon (AMZN) and Alphabet (GOOGL).
Ackman also said Pershing Square sees the same long-term value in Microsoft that earlier attracted the firm to Meta Platforms (META), Alphabet, and Amazon when investors were more cautious on those stocks.
What Is the Price Target for Microsoft Stock?
Overall, MSFT stock earns a Strong Buy consensus rating on TipRanks. The average MSFT stock price target of $559.98 implies 36.77% upside potential from current levels.
