Microsoft & The AI Race

The largest company in the world.

Author

Donovan Jackson
May 31, 2025

Who will be #1?

When I hear people discuss which companies have potential in the future to be the largest in the world, the common answers are Tesla, Nvidia, and occasionally you might hear Apple. My question is, why not Microsoft? They are already the leader of AI in some metrics, and they are quietly expanding their AI MOAT. As of today, May 31st 2025, Microsoft is the largest company in the world, and they have a pretty good chance to not only keep but expand this lead throughout the upcoming years.

Microsoft’s AI Strategy

I believe Microsoft is best suited for easy AI integration, due to their products and services like Office 365, Microsoft Teams, Windows, GitHub Co-Pilot and Azure, which is currently the second largest cloud platform behind Amazon AWS. They have the opportunity to actually deploy AI where people already work and create, and not just chase AI headlines like many other companies. Not to mention they are closely tied with Open AI, which in my opinion, has potential to be one of the greatest companies in American history.

MOATs

Many of Microsoft’s systems are already embedded in almost every fortune 500 company. This makes it extremely easy for them to offer new products to customers, due to their already wide market share, and reputation among the industry. Their most recent earnings report shows this, as investors were completely offsides and realized that Microsoft was doing a lot more than previously thought. The stock jumped over 10% during the next trading day (intraday), which was the second largest daily gain in the stock’s history.

The Charts

Microsoft is currently closest (% wise) among the Mag 7 to former all-time highs, after being “dead money” for over a year.

This is a 20+ year cup and handle relative to the Technology sector. A break-out here could officially solidify Microsoft’s leadership in tech. Pretty ironic if you ask me, as many people already consider Microsoft to be a tech leader. (It is)

This is a 20+ year base relative to its peers in the software industry. This ratio found resistance at the exact same levels it did back in 2002 (For the people who don’t believe in polarity among ratio charts). I think eventually, Microsoft breaks-out versus software stocks.

If we see Microsoft start to release their own AI hardware and consumer devices, Apple could be in for some trouble.

Conclusion

As crazy as it sounds, Microsoft is a “sleeper” company, when thinking about the future largest company in the world. I believe they are well suited to not only remain the largest, but also expand their lead in the years to come. You often hear how Nvidia is selling the “picks and shovels” when comparing AI to the Gold Rush. While this is true, Microsoft is selling the land and the maps. Meaning, they are offering the platforms, services and channels that everyone uses to build, run, and ultimately benefit from AI. What do you think? The spot for the future largest company in the world will be a very interesting battle, and I can’t wait to see what happens. Feel free to reach out and let me know your thoughts. Thank you for reading, and blessings to all!