Microsoft’s blazing stock comeback isn’t even close to being over, analyst says

Melius Research has reiterated a constructive view on Microsoft, framing the company as a relatively defensive way to gain exposure to the artificial intelligence theme. The call follows a sharp rebound in the shares, but the analyst argues the recovery still has room to run rather than being largely complete.

The logic rests on where investors appear to be positioning. As the AI trade matures, some market participants are gravitating toward larger, cash-generative businesses with diversified revenue streams and established enterprise relationships, rather than purely speculative names. Microsoft's combination of cloud infrastructure and software distribution makes it a candidate for that role, according to the research note.

For observers, the key question is whether this preference for perceived safety within AI persists. If it does, capital could continue rotating toward scaled platforms at the expense of smaller, higher-risk plays. Watch enterprise cloud spending trends and AI product adoption metrics, which underpin the thesis. The call is a view on relative positioning, not a guarantee, and sentiment around AI valuations remains capable of shifting quickly.