Business · Yahoo Finance
The Best Artificial Intelligence (AI) Growth Stock on the Nasdaq That Morningstar Tells Is Still Undervalued
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Artificial intelligence (AI) stocks were hot in recent years, but that began to change in 2026.
Key facts
- It was generating $1 billion per quarter at the end of 2024, and now that's up to $2 billion per month
- Microsoft's fiscal Q2 revenue rose 17% year over year to $81.3 billion as its cloud division sales grew 29% to $32.9 billion
- Microsoft shares sank over 10% this year through April 21, and hit a 52-week low of $356.28 on March 30
- Artificial intelligence (AI) stocks were hot in recent years, but that began to change in 2026
Summary
The shift in sentiment was caused by several concerns, including massive capital expenditures by the likes of Microsoft ( MSFT +2.11% ). Indeed, Morningstar's view that Microsoft is undervalued rings true. Microsoft shares sank over 10% this year through April 21, and hit a 52-week low of $356.28 on March 30. Concerns over that enormous capex jump are understandable, especially since ChatGPT creator OpenAI accounts for 45% of Microsoft's remaining performance obligations (RPO).