A Student's Stock of The Week: Microsoft

Disclaimer: This is a general opinion and should not be classed as personal or professional financial advice.

Today's stock is making it's debut in this weekly series, Microsoft. Originally, I was going to opt for Apple again this week but a couple of updates have changed this.

The first reason being that Microsoft shares have dropped 2.31% today, making now a good time to buy. The news on Microsoft has generally been positive, despite the drop in share price. Microsoft beat Wall Street expectations for Q4 and put up an 18% year-on-year growth, which betters Apple's 10%, who were my initial choice.

In my last piece, I mentioned how some companies rushed into the AI game and Apple's patience was a reason today invest. Today, I am using Microsoft's use of AI as a reason to invest. Microsoft now produces 35% of its new product code using AI, contributing to cost savings achieved over the past two years while enhancing efficiency.

There is a downside of Microsoft's AI connection to be noted though. Microsoft spent a record amount on AI infrastructure in Q1FY2026, which has led to some investor worries. Despite this, experts still have faith in a strong to 2026. Dan Ives at Wedbush names Microsoft as one of his top AI picks for the year. The general consensus among experts is that Microsoft will be one of the key companies in shaping how the AI bubble develops in 2026. Whether good or bad.

Shares are currently trading at $472.39 per share.