Mega-cap stocks are those with a market capitalization of $200 billion or more. Most of these stocks are associated with large, well-established companies with strong track records. They generally rank among the leading players in their respective industries. Due to their sheer size, mega-cap stocks are often considered safer bets during uncertain macroeconomic times. Using TipRanks’ Stock Comparison Tool, we placed Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) against each other to find the best mega-cap tech stock, according to Wall Street analysts.
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Microsoft (NASDAQ:MSFT) Stock
Microsoft stock has risen 21% year-to-date. The software and cloud computing company impressed investors with upbeat results for the fourth quarter of Fiscal 2025. The company generated 18% revenue growth in Q4 FY25, driven by the strength in its Azure cloud computing business and artificial intelligence (AI) services.
In fact, sales from Azure and other cloud services surpassed $75 billion in Fiscal 2025, reflecting a 34% year-over-year growth. The integration of AI across MSFT offerings is also driving higher revenue from its productivity software.
Looking ahead, Microsoft is well-positioned for continued growth, thanks to solid demand for Azure and its AI offerings amid the ongoing AI boom.
Is Microsoft a Buy, Hold, or Sell?
Recently, Truist Securities analyst Terry Tillman increased the price target for Microsoft stock to $675 from $650 and reiterated a Buy rating. Tillman stated that he is confident about the company sustaining strong momentum, backed by cloud and AI secular growth drivers. The analyst expects MSFT to benefit from a “growth-enhancing halo effect” across a range of its individual infrastructure, data, and app businesses.
Tillman expects Microsoft to see continued solid cloud growth at scale and growing AI demand to drive at least low-teens double-digit revenue, profit, and cash flow growth over an extended period, while consistently returning cash via dividends and repurchases.
Overall, Wall Street has a Strong Buy consensus rating on Microsoft stock based on 33 Buys and one Hold recommendation. The average MSFT stock price target of $624.08 indicates 22.5% upside potential.
AAPL (NASDAQ:AAPL) Stock
Apple stock has recovered well over the past month, but is still down 7% year-to-date. Concerns about the company lagging behind other tech giants in the AI race, lackluster iPhone sales amid intense competition in the smartphone market, tariff woes, and the U.S.-China trade war impacted investor sentiment.
However, Apple’s market-beating results for the third quarter of Fiscal 2025 addressed investors’ concerns and revived hopes about better times ahead. Notably, Apple reported overall revenue growth of 10% in Q3 FY25, marking the largest quarterly revenue growth since December 2021. Moreover, iPhone revenue grew 13% in the June quarter.
All eyes are now on Apple’s fall event on September 9, which could be a potential catalyst for the stock. The company is expected to unveil new iPhones, watches, and other products, showcasing its efforts to integrate AI into its devices.
Is AAPL Stock a Buy or Sell?
Recently, Morgan Stanley analyst Erik Woodring reiterated a Buy rating on Apple stock with a price target of $240. The analyst believes that Apple could be “turning the corner,” given stronger-than-expected iPhone builds in China and the possibility of estimates being revised higher. He also noted elongated replacement cycles, pent-up iPhone demand, structural gross margin tailwinds, and easing tariff and regulatory headwinds.
Notably, Morgan Stanley’s Greater China Technology Hardware team raised its September quarter iPhone build forecast by 8% to 54 million units, citing better-than-anticipated iPhone sell-through in the June quarter and low channel inventory that resulted in a larger channel fill opportunity. Woodring highlighted that the revision was primarily for the iPhone 16 (2 million units) and Pro Max (2 million units) models.
Woodring thinks that the build increase raises the possibility of upside in the December quarter. The analyst stated that he is becoming increasingly bullish on Apple and believes the stock is just one potential AI partnership away from breaking out.
Currently, the consensus rating for Apple stock is a Moderate Buy based on 16 Buys, 11 Holds, and one Sell recommendation. At $239.60, the average AAPL stock price target indicates 3% upside potential.
Amazon (NASDAQ:AMZN) Stock
Amazon reported upbeat results for the second quarter of 2025. However, investors were unimpressed with the subdued Q3 operating income guidance of the e-commerce and cloud computing giant.
Investors are mainly concerned about the payoff from the company’s massive AI investments and the performance of its cloud computing unit, Amazon Web Services (AWS), which is facing intense competition from Microsoft’s (MSFT) Azure and Alphabet’s (GOOGL) Google Cloud. While Amazon’s AWS continues to dominate the cloud infrastructure market, its June quarter revenue growth of about 18% lagged the 39% and 32% growth reported by Microsoft Azure and Google Cloud, respectively.
On the positive side, Amazon’s advertising business delivered better-than-expected growth of 23% in Q2 2025 and is being seen as a major growth catalyst for the company.
What Is the Target Price for Amazon Stock?
Morgan Stanley analyst Brian Nowak, who has a Buy rating on Amazon stock with a price target of $300, believes that AWS could see its growth accelerate above 20% in 2026 as capacity expansion begins to align with rising demand. His expectation is based on an analysis of capital expenditures and expected data center square footage.
Nowak stated that AWS’s forward growth and competitive positioning in this early generative AI era continues to be a key investor debate and driver of AMZN’s multiple. The analyst noted a strong backlog, thanks to demand from companies scaling generative AI workloads and broader adoption of cloud computing.
Nowak also pointed to a shift in capital spending trends. He noted that while Azure outpaced AWS in 2023 to 24 capex by $5 billion to $6 billion per quarter, AWS is now catching up. He expects AWS and other hyperscalers to grow their respective capex by about $33 billion in 2025. Further, Nowak expects elevated spending to continue into 2026. Nowak sees the possibility of further upward revisions to AWS investments, given that overall capex intensity at AWS continues to lag Azure.
With 45 Buys and one Hold recommendation, Wall Street has a Strong Buy consensus rating on Amazon stock. The average AMZN stock price target of $263.74 indicates about 14% upside potential from current levels. AMZN stock has risen 6% year-to-date.
Conclusion
Wall Street is highly bullish on Microsoft and Amazon, but cautiously optimistic on Apple stock. Analysts see higher upside potential in Microsoft stock than in the other two mega-cap tech stocks. Wall Street expects Microsoft’s Azure cloud business and productivity tools offerings to gain from robust AI tailwinds.