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Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?

Zacks Investment Research·
Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?

Microsoft strengthened its AI position by expanding collaboration with Nvidia, launching the Surface Laptop Ultra powered by Nvidia's RTX Spark chip starting at $2,599 and a developer workstation at $5,999. While Microsoft's long-term growth outlook remains strong with 17% revenue growth expected through FY27, earnings estimate revisions have been flat and the stock trades at a premium 27X forward earnings, earning a Zacks Rank #3 (Hold) rating.

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