Is Microsoft an Undervalued AI Stock Right Now?

Microsoft (NASDAQ: MSFT) is one of the most valuable companies in the world when measured by market capitalization.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

*Stock prices used were the afternoon prices of Jan. 2, 2025. The video was published on Jan. 4, 2025.

Should you invest $1,000 in Microsoft right now?

Before you buy stock in Microsoft, consider this:

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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.