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Two companies that stand to benefit are Microsoft (NASDAQ: MSFT) and CrowdStrike (NASDAQ: CRWD). They approach AI from different directions, but both are already seeing growing demand for their products. With $5,000 to invest, I’d consider splitting my money equally between these two outstanding software, though you may not realize it. Microsoft makes some of the most popular software programs, such as Word, Excel, PowerPoint, and Outlook. All of them are available in the company’s popular Microsoft 365 suite.
In addition, its Azure cloud platform supplies the infrastructure needed to develop and run AI applications. Azure AI Foundry provides tools for developers to build those applications, while GitHub Copilot helps them write code.
The strategy is paying off. In Microsoft’s fiscal first quarter of 2027, which ended Sept. 30, Azure and other cloud services revenue increased 48% year over year to $33.16 billion.
Microsoft has also incorporated Copilot in its 365 software suite of office tools. During the quarter, Microsoft reported that daily Copilot users increased nearly 50% sequentially and more than fivefold year over year. The number of <a s particularly encouraging because it demonstrates that businesses are willing to pay for AI capabilities within software they already use.
Microsoft reported $677 billion in commercial remaining performance obligations, representing contracted revenue that hasn’t yet been recognized. That figure increased 73% year over year, although commitments from OpenAI contributed substantially to the growth.
If there’s a downside to Microsoft stock now, however, it’s in spending. Microsoft is dropping billions of dollars every quarter to satisfy AI demand. Capital expenditures reached $45.2 billion in the quarter, and management expects spending to increase to $50 billion in Q2.
