Microsoft’s (msft) Growth Story is Still Its Cloud Business, Not AI

Microsoft Corporation (NASDAQ:MSFT) is one of the 12 Best Dow Stocks to Invest In Right Now. On July 1, Jefferies highlighted Microsoft Corporation (NASDAQ:MSFT) and Amazon as two of the biggest beneficiaries of continued growth in cloud computing Based on a survey

Microsoft Corporation (NASDAQ:MSFT) is one of the 12 Best Dow Stocks to Invest In Right Now.

On July 1, Jefferies highlighted Microsoft Corporation (NASDAQ:MSFT) and Amazon as two of the biggest beneficiaries of continued growth in cloud computing

Based on a survey of 40 U.S. Chief Information Officers, the firm now expects cloud spending to grow 10.1% in 2026, slightly faster than its previous forecast. Nearly 95% of respondents said they expect to increase their cloud budgets next year.

Among them, 53% expect single-digit growth, while 43% forecast double-digit growth. Only 3% expect their cloud spending to decrease. Jefferies analysts stated in a note to clients: “Cloud spend will modestly accelerate to 10.1% in ’26 vs. 9.6% in ’25 based on survey data, vs. our previous cloud survey, which implied a slight deceleration. ~95% of respondents expect their cloud budgets to grow y/y in ’26. 53% expect their cloud budgets to grow by single digits, while 43% anticipate a double-digit increase.

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