Microsoft remains top pick at Morgan Stanley on AI, cloud, security strength
Jean-Luc Ichard
Microsoft (NASDAQ:MSFT) is still investment firm Morgan Stanley's top pick in the software space due to the fact it is "uniquely aligned" to several key themes, including artificial intelligence, cloud computing and cybersecurity. 
Analyst Keith Weiss, who has an overweight rating and $415 price target on Microsoft (MSFT), said the company is in the "pole position" as the generative AI race kicks off and looks well aligned to continue capturing wallet share, according to the firm's recent CIO survey. 
"Overall, Microsoft continues to screen well with favorable alignment to key secular AI themes and: Scope to monetize Generative AI across its broad portfolio; Leverage to consumption pricing (via its Azure Cloud business) enabling investors to see any pick-up in demand earlier," Weiss wrote in a note to clients. 
Weiss added that Microsoft (MSFT) has exposure to the categories that are seen as the most important to Chief Information Officers, such as security, machine learning and cloud computing, all of which are helping the Satya Nadella-led company "maintain its position as the #1 share gainer of IT wallet on a 1-year and 3-year view."
Microsoft (MSFT) shares were up 0.4% in pre-market trading on Wednesday.

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