Morgan Stanley analysts, led by Keith Weiss, recently ranked (NASDAQ: MSFT) as their "top pick" among large-cap software companies, citing growth prospects in generative artificial intelligence (AI) and a sensible valuation. The analyst team also raised its 12-month price target on Microsoft to $415 per share, implying a 25% upside from its current share price. That price target also implies a valuation of nearly $3.1 trillion by mid-2024 at the latest.

Here's what investors should know about this AI growth stock.

Microsoft accounted for 16.4% of software-as-a-service revenue last year, taking nearly twice as much market share as its closest competitor, and Microsoft Azure currently serves 95% of the Fortune 500 in some capacity. In short, the tech giant offers a broad range of software products and cloud services that collectively form the IT backbone for many modern businesses.

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Source Fool.com