Microsoft Stock And 2 AI Picks Backed By Cloud And Software Demand

Artificial intelligence is moving from buzzword to real-world infrastructure, touching everything from chips and cloud to software and large language models such as ChatGPT. While inflation trends, rate decisions and mixed global growth signals keep markets on edge, AI spending remains a key focus for many investors who are looking for long term themes rather than short term noise. The AI Stocks screener zeroes in on companies directly involved in this transformation, from semiconductors to software platforms. In this article, you will see 3 notable stocks from that screener and what makes each one stand out in the current backdrop.

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Microsoft (MSFT)

Overview: Microsoft is a global technology company that sells productivity software like Microsoft 365 and Teams, runs the Azure cloud platform that powers many AI workloads, and offers Windows, devices, gaming, and LinkedIn to consumers and enterprises worldwide.

Operations: Microsoft generates most of its US$318.3b revenue from Productivity and Business Processes (US$135.3b) and Intelligent Cloud (US$128.4b), with the remainder from More Personal Computing (US$54.6b). Its sales are broadly split between the United States (US$162.8b) and other countries (US$155.4b).

Market Cap: US$2.6t

Microsoft sits at the center of AI infrastructure and software, with Azure, Copilot and Microsoft 365 tying together large AI data centers, subscription software and long term enterprise contracts. The stock still trades on a P/E and DCF view that some analysts see as leaving room for upside. At the same time, intense AI related capital spending, regulatory scrutiny over cloud and productivity software, and ongoing lawsuits mean this is not a one way story. For investors, the combination of high margins, strong cash generation, seasoned leadership and deep AI partnerships, alongside these real risks, makes Microsoft a company that some market participants may choose to watch closely, particularly as sentiment continues to swing around AI spending and regulation headlines.

Microsoft's AI engine spans Azure, Copilot and Microsoft 365, but the real question is whether current expectations match the full story on quality, valuation and risk. For the full context, see the 5 key rewards and 1 important warning sign.

Figma (FIG)

Overview: Figma is a San Francisco based software company that offers a browser based platform for teams to design, prototype and ship digital products together in real time. Its products span core tools like Figma Design, FigJam whiteboarding and newer AI assisted products such as Figma Make and Figma Weave.

Operations: Figma generates US$1.2b in revenue from Internet Software & Services, with sales split between International customers (US$621.9m) and the United States (US$539.1m).

Market Cap: US$8.9b

Figma provides exposure to a widely used design platform that sits inside the daily workflow of product and marketing teams, with around 95% of Fortune 500 companies using Figma Design and new AI features now integrated into products like Make, Buzz and Sites. Revenue growth of 41.4% and raised guidance indicate strong demand, yet the company is still loss making, carries higher funding risk and has seen very high executive pay while unprofitable, which can concern some investors. Broker coverage appears split between enthusiasm for AI monetization and questions about how quickly these tools will pay off. As a result, the key opportunity and the key risk relate to how the business balances growth against its unproven path to profitability.

Figma’s 41.4% revenue growth and deep workflow adoption suggest something bigger may be building beneath the current losses. The real twist is what the analyst forecasts for Figma reveal about how this story could evolve next.

Infleqtion (INFQ)

Overview: Infleqtion is a quantum technology company that builds neutral atom based systems for computing, sensing, timing and networking, supplying hardware and software that support defense, space, energy, finance and other sectors that need secure communications, precise timing and high performance computing.

Operations: Infleqtion generates US$33.6m in revenue from Computer Services, with most sales coming from the United States and smaller contributions from the United Kingdom, Australia, Japan and other regions.

Market Cap: US$2.8b

Infleqtion gives investors exposure to quantum computing, sensing and timing at a moment when governments are putting fresh money behind neutral atom platforms, as seen in recent U.S. funding awards and executive orders that name quantum security and space systems as priorities. The company is still small and loss making, with about US$32.5m of 2025 revenue and a sizeable operating loss, and the stock has been volatile with significant insider selling, so the risk profile is high. At the same time, its role in programs across NASA, the U.S. Navy and U.K. defense, plus partnerships around AI workflows, means Infleqtion is closely tied to areas where budgets and attention are growing. The open question is how this mix of opportunity and funding risk ultimately plays out for shareholders.

Infleqtion sits where quantum, defense and AI workflows intersect, yet the real hinge is how its funding risk and government backed contracts fit together. The analysis report for Infleqtion hints at one factor that could change how investors frame that trade off.

The three AI stocks covered here are just a starting point, with the full Artificial Intelligence/ AI Stocks screener surfacing more than 200 additional companies that each carry their own compelling AI angle, from chips and cloud to software and large language models. Use Simply Wall St to identify and analyze the specific catalysts, funding profiles and business narratives that matter to you, so you can focus on the opportunities you find most compelling within this fast moving theme.

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Seeking Fresh Alternatives For Your Next Move?

Markets can change quickly and many notable breakout stories do not stay under the radar for long, so review these fresh stock ideas before the crowd and consider your next steps.

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• Concentrate on potential early stage compounders by running through the focused 19 high quality undiscovered gems while these stories remain less widely followed.

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

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