Microsoft (NASDAQ: MSFT) has been identified by analysts as one of the best long-term stocks to own, backed by a renewed and assertive artificial intelligence strategy.
On June 4, TD Cowen reiterated its Buy rating on Microsoft and set a price target of $540, citing the company’s push into self-developed AI capabilities.
The bullish stance follows Microsoft’s announcement of seven new self-built AI models, each focused on fine-tuning and cost optimization across its technology stack.
The new models represent a meaningful shift in how the software giant approaches AI development, signaling a deliberate move away from dependence on frontier laboratories.
Microsoft has made significant advances in positioning itself across AI models, AI stack layers, and do-it-yourself application frameworks that serve enterprise customers.
As part of this evolving strategy, the company has already allocated a significant graphics processing unit capacity to its internal research and development teams.
That allocation marks a new phase in Microsoft’s AI portfolio ambitions, reflecting the scale of investment the company is committing to homegrown model development.
At the Build 2026 conference, Microsoft was prominently featured, using the platform to showcase the latest advancements across its broader AI infrastructure.
The company also reaffirmed plans to help businesses and developers deploy AI agents, while simultaneously building its own version of a platform referred to as OpenClaw.
Microsoft operates some of the world’s most widely used technology products, including the Azure cloud computing platform and the Microsoft 365 productivity software suite.
The combination of a strengthened AI pipeline, growing cloud infrastructure, and a clear internal research mandate continues to underpin analyst confidence in the stock’s long-term trajectory.
With a $540 price target now on the table from TD Cowen, institutional sentiment around Microsoft’s capacity to compete at the frontier of AI development remains firmly positive.
