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Fund Manager Says He’s Buying Microsoft (MSFT) Shares Despite ‘Terrible Chart’

Fund Manager Says He’s Buying Microsoft (MSFT) Shares Despite ‘Terrible Chart’

  • 18.03.2025 18:53
  • msn.com
  • Keywords: AI, Market Sentiment

Fund manager Jeff Sonnenfeld says Microsoft (MSFT) shares are undervalued despite a "terrible chart," calling it a buying opportunity due to its strong position in cloud computing and AI.

Microsoft NewsMSFTsentiment_satisfiedNVDAsentiment_satisfied

Estimated market influence

Microsoft Corporation

Microsoft Corporation

Positivesentiment_satisfied
Analyst rating: Strong buy

The article discusses Microsoft's position in the market despite negative chart trends. It mentions that Microsoft is a great company with durable competitive advantages and significant cash flows. The fund manager is buying shares despite a 'terrible chart', indicating confidence in the company's fundamentals.

NVIDIA

NVIDIA

Positivesentiment_satisfied
Analyst rating: Strong buy

Jim Lebenthal mentioned NVIDIA as another great company alongside Microsoft, suggesting a positive view of its stock price and potential.

Context

Analysis of Microsoft's Position in Market and Business Insights

Market Sentiment

  • CEO sentiment has declined due to tariff-related uncertainties and concerns over AI stock valuations.
  • 100 surveyed CEOs across sectors (60% Republican, 30% Democrat, 10% independent) overwhelmingly view President Trump's tariff moves as a disaster.

Microsoft's Position

  • Jim Lebenthal, Chief Equity Strategist at Cerity Partners, is buying Microsoft shares despite a "terrible chart," citing attractive pricing.
  • Microsoft ranks 3rd on the list of top trending stocks as AI hype fades.

Competitive Landscape and Business Impact

  • Azure: Leading in cloud computing with steady market share gains.
  • Office Suite: Near-monopoly in office software productivity market.
  • AI Investments: Plans to spend $80 billion by 2025 on AI data centers, positioning Microsoft for growth in enterprise IT ecosystems.

Strategic Considerations

  • The article suggests that while Microsoft is a strong investment, under-the-radar AI stocks may offer higher returns with shorter time frames.
  • These alternative AI stocks trade at less than 5 times their earnings, presenting attractive valuation opportunities.

Long-term Effects and Market Implications

  • Tariff policies and CEO sentiment shifts could impact market reactions and corporate strategies.
  • Microsoft's strategic investments in Azure and AI are expected to drive long-term growth and competitive advantage.