1 Artificial Intelligence (AI) Stock That Could Make You a Millionaire

There's no denying that the advent of artificial intelligence is changing the world dramatically. From real-time creation of digital images, to conversational interactions, to autonomous robots, to fraud detection, and so much more, artificial intelligence (AI) is now doing everything that was unimaginable just a few years ago. The rise of AI will alsoNvidia,Palantir respond in singingSymboticCompanies such as the U.S. Department of Defense have been thrust into the spotlight for helping to usher in a new era of supercomputing.

But there's another AI stock worth looking at that's hiding in plain sight. That company is software giantMicrosoft (NASDAQ resonance code: MSFT)It can make you a millionaire easily. It can make you a millionaire easily.

Microsoft Has (Quietly) Dabbled in Artificial Intelligence

You know this company easily. Not only is Microsoft the largest company in the world by market capitalization, but its Windows operating system is installed on more than two-thirds of the world's computers. Microsoft's influence in the PC market is so great that it is also a major player in the personal productivity software market. The company is also a major cloud computing technology company, and its Xbox video game console is a well-recognized brand in the gaming industry.

But what about artificial intelligence? Actually, yes.

In a major hint of its commitment to the future of the AI industry, Microsoft acquired OpenAI, the parent company of AI devices and ChatGPT, for billions of dollars back in 2023. At the same time, Microsoft further integrated ChatGPT into its Bing search engine platform, and since then the technology has evolved into a full-fledged AI assistant that Microsoft calls Copilot. For those willing to pay a monthly fee, Copilot can be integrated with Microsoft's Office suite of office software to make programs like Word and Excel even more powerful.

However, Microsoft's exploration in the field of artificial intelligence does not stop there.

Take, for example, Azure, its cloud management platform. While Azure is capable of handling a wide range of cloud computing tasks, there is a version of the software built specifically for artificial intelligence applications. This special tool can be used to create enterprise-specific AI chat apps or to develop customer-specific Copilot solutions for paying customers such as beer company Heineken, printer maker Lexmark, and telecom giantAmerican Telephone and Telegraph Company(AT&T), etc.

Still, the tech giant is investing in new AI micro-growth projects. Just this week, it earmarked $2.9 billion to expand its mega cloud computing and AI business in Japan. A large portion of the money will be used to train up to 3 million people to build and use AI solutions.

Growth Prospects for the Artificial Intelligence Market

The future of the artificial intelligence industry is not entirely clear. It's also not entirely clear what Microsoft will do with AI in the future.

However, it is clear that MicrosoftAlready.Prepare for whatever lies ahead.

To be sure, Microsoft's future is looking bright. According to market research firm Precedence Research, the AI software market alone will grow at a rate of 23% per year by 2032, when it will be worth more than $1 trillion per year.

However, this outlook may actually underestimate Microsoft's ultimate potential in the AI space. Precedent further suggests that over the same period, the global virtual assistant market would have grown at a compound annual growth rate of 26%. Microsoft, which is already at the heart of most of the world's computers, is almost certainly winning a larger share of the growth in this business. As Wedbush Securities analyst Daniel Ives said of the recently launched Copilot platform, "We strongly believe that this is Microsoft's 'iPhone moment,' and that AI is going to change Redmond's business in the coming years. We strongly believe that this is Microsoft's 'iPhone moment' and that artificial intelligence will change the trajectory of cloud growth in Redmond over the next few years.

It's an exciting comparison. 2007 was the year the iPhone debuted. AppleThe main reason the stock has done so well since then; the popular smartphone now accounts for about half of the company's revenue.

A balanced, low-risk approach to AI investing

No, it's not "pure AI". Productivity and business software still account for about a third of Microsoft's current revenue, with cloud computing a little higher. personal computing solutions like Windows, Gaming, and Bing are almost as big as the rest of the business (if they're integrated with each other). While some of these other businesses have AI elements, others do not.

Connecting the dots - AI may take a little while longer to make its proverbial impact on the software giant's profit and loss line.

As much as possible, it's not inconceivable that AI will end up driving the majority of a company's revenue within a few years. That includes revenue from businesses that aren't necessarily related to AI, but are also driven by it. The diversity of all of Microsoft's other proven profit centers makes Microsoft stock easier to hold while you wait. That's something most other hot AI stocks can't match.

More importantly for interested investors, AI could accelerate the software giant's growth, which is otherwise hampered by Microsoft's massive mold. This largely unexpected growth is a key reason why it's expected to become a millionaire stock.

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James Brumley owns shares of AT&T. The Motley Fool owns shares of recommended stocks of Apple, Microsoft, Nvidia, and Palantir Technologies. the Motley Fool recommends the following options: Microsoft January 2026 $395 Call Options Long and Microsoft January 2026 $405 Call Options Short. the Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy.

1 Just Artificial Intelligence (AI) Stocks Could Make You a Millionaire was originally published by The Motley Fool.