Microsoft stock and two notable AI software names

Our AI stock screen focuses on companies directly involved in building ChatGPT and artificial intelligence, from semiconductors and chips to software, LLM, cloud, and broader digital transformation. As investors focus on AI-related gains in China, changes in global energy costs, and trends in interest rates, this theme provides a focused way to track the publicly traded companies at the center of this technology shift. In this article, we introduce three stocks from our screener and provide a clear explanation of what each company is doing in the AI ​​space and why it stands out in today’s market climate.

Microsoft (MSFT)

overview: Microsoft is a global technology company that provides Windows and Office software, Microsoft 365 and Teams collaboration tools, Azure cloud and AI services, LinkedIn, Xbox games, and a wide range of enterprise solutions used by businesses and consumers around the world.

operation: Microsoft generates approximately US$135.3 billion from productivity and business processes, US$128.4 billion from Intelligent Cloud, and US$54.6 billion from More Personal Computing, with revenue split between US$162.8 billion and the rest of the world at US$155.4 billion.

Market capitalization: 2.8 ton dollars

Investors focused on AI may want to consider Microsoft. That’s because Microsoft combines a large, well-funded cloud and software business, supported by partnerships with major enterprise customers such as OpenAI and the NHS, with a massive buildout of AI infrastructure and products like Copilot. Some valuations view the company’s stock as trading well below certain fair value estimates, and metrics such as earnings growth, a profit margin of about 39%, and strong analyst confidence indicate that the company’s core business is seen as strong, even as capital spending and data center power trading have come under scrutiny. Meanwhile, there is significant regulatory pressure on cloud and pricing in the US and EU, with signs of insider selling and questions about long-term AI spending. This combination of strong fundamentals and ongoing risk is an important factor for investors researching Microsoft.

Microsoft’s AI infrastructure, roughly 39% profit margins, and strong analyst conviction suggest that many investors may only have half the story figured out. The real problem is that 5 major rewards and 1 key warning sign are quietly revealing where it could collapse or accelerate next.

Strategy (MSTR)

overview: Strategy Inc is a Bitcoin finance and software company that provides investors with exposure to Bitcoin through publicly traded securities, while also selling AI-powered enterprise analytics tools that help organizations turn data into decision-friendly insights. In addition to our Bitcoin holdings, we also offer platforms such as Strategy One and Strategy Mosaic that span multiple data sources to create a consistent layer of intelligence for large enterprises.

operation: Strategy generates approximately US$490.5 million from its software business, with US$278 million primarily from the United States, US$169 million from Europe, the Middle East and Africa, and US$43.4 million from other regions.

Market capitalization: $28.9 billion

This strategy stands out in our AI stock screener because it blends a traditional software business with a highly unusual balance sheet built around Bitcoin. This turns the stock into a kind of leveraged bet on cryptocurrencies and AI-powered analytics. The company is currently unprofitable and highly dependent on external funding and shareholder dilution. Recent scrutiny of STRC preferred stock, dividend coverage, and class action risk shows how quickly sentiment can change. At the same time, the expectations for strong revenue growth, a low P/B ratio compared to software peers, and a long-tenured and largely independent board create a very different picture. The tension between these fundamentals, Bitcoin financial models, and funding risks is what Strategy investors are really trying to understand.

Strategy’s Bitcoin-heavy balance sheet and AI software revenues make for an unusual combination, and many investors may still be pricing the cryptocurrency as a simple proxy. See our 2 major rewards and 1 important warning sign to see how this story might change if sentiment, funding status, or software traction change.

Figma (FIG)

overview: Figma is a San Francisco-based software company that provides a browser-based platform for teams to design, prototype, and ship digital products together, covering interface design, whiteboarding, slides, websites, and content management in one connected system. Tools like Figma Design, FigJam, Slides, and Sites and AI features like Make and Weave are built to help designers, developers, and marketers work on the same files in real time.

operation: Figma generates approximately US$1.2 billion from its Internet software and services, including approximately US$621.9 million from international customers and US$539.1 million from the United States.

Market capitalization: $9.8 billion

Figma is at the heart of how many large companies design and ship digital products, and its design platform is widely used across Fortune 500 workflows and is now expanding into marketing, content, and AI-assisted production. Revenue has increased 41.4% over the past year, and recent touts of AI tools, usage-based AI credits, and Config ’26’s “Intelligent Canvas” have focused attention on how much more revenue the platform can generate from existing customers, even though the company is not yet profitable, posted a net loss of USD 142.4 million in Q1 2026 and is dependent on external borrowings. While some analysts argue that Figma is integral to the company’s design and the price target has been lowered, a key consideration is whether the current combination of high growth, rich profits, and AI monetization risk is fully factored into the stock price.

Figma’s 41.4% revenue growth, high profit margins, and new AI tools show that the product story may be decoupled from sentiment. See how Figma’s analysts are reconfiguring the risk-reward tradeoff ahead of their next move.

These three AI stocks are just a starting point. The full screener revealed a further 648 companies related to semiconductor, cloud, LLM, and broader ChatGPT construction, each with its own potential narrative and risk profile. To identify and analyze the highest-conviction AI opportunities that align with the catalysts discussed in this article, you can use our Artificial Intelligence/AI Stock Screener.

Take control of your investment journey

If Figma or one of these companies has caught your attention, register for free on Simply Wall St and add your company to your watchlist to monitor stock price relative to fair value and track any new developments. Once migrated, manage your holdings with a portfolio command center that filters out the noise and delivers only the most important and actionable updates. Our community allows you to filter the best ideas from thousands of investor perspectives throughout your journey. Discover hidden catalysts and risks early to accelerate decision-making and stay ahead of the market.

Looking for a fresh alternative before you leave?

New themes can quickly gain momentum. The most attractive entry points often appear quietly and then move on. Consider these fresh stock ideas that may be under the radar right now, and consider whether you want exposure early in the story.

• Before more investors start demanding the same dividends, run through eight dividend fortresses and aim for a reliable source of income while offering high yields.
• By filtering through 19 high-quality undiscovered gemstones, we discovered potential formulators early and identified companies that remain off the regular watch list.
• Get ahead of future infrastructure refresh cycles by checking out 35 power grid technology and infrastructure stocks to assess which companies are currently exposed to power grid projects.

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email us at editorial-team@simplywallst.com.