If I Could Only Buy Shares in One $1 Trillion Company Through the End of 2025, I’d Pick This Outstanding Growth Stock

It was a little over six years ago that Apple became the world’s first trillion-dollar company. Now, there are several others with market caps over $1 trillion and a handful of companies valued at over $3 trillion.

The stock market can do just about anything in the short term, so it’s impossible to know how a company will do in 2025. But Microsoft (NASDAQ: MSFT) has what it takes to chart a path toward steady growth, which can’t be said for all of the companies valued at over $1 trillion

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Here’s why Microsoft stands out as the best all-around buy of the ultra-megacap growth stocks.

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Image source: Getty Images.

What impresses me the most about Microsoft is its ability to strengthen the quality of its earnings while continuing to take risks and innovate. In recent years, it has undergone transformational growth while maintaining many of its software solutions that are multiple decades old.

The company has integrated artificial intelligence (AI) into its highly profitable Intelligent Cloud segment. It continues to expand its AI assistant tool, Copilot, across the Microsoft 365 software suite and other aspects of its business.

For example, GitHub Copilot has become the most widely adopted AI-powered developer tool. According to the company’s fourth-quarter fiscal 2024 earnings call, GitHub’s annual revenue run rate is now $2 billion.

On Oct. 21, Microsoft announced new autonomous agents that can be assigned specific tasks through Copilot Studio. Businesses can create agents for simple administrative tasks like processing sales orders. Agents can assist with sales lead generation, data management, customer service, and more. This new product announcement is just one of many examples of how Microsoft maintains its entrenched foothold across several end markets.

Too often, we see companies reach a certain size and get bogged down by inefficiencies. Their size works against them, and they lose that innovative spirit that made them successful in the first place.

Microsoft uses its size to its advantage while avoiding making it a weakness. It has been ramping up spending to accelerate growth, but not to the point of being wasteful. The company is still buying back a ton of stock and making sizable raises to its dividend every year.

The company has several levers to pull to create value for shareholders. It doesn’t rely entirely on new ideas or lean too heavily on its legacy products and services. It isn’t an all-or-nothing growth stock that doesn’t pay a dividend and dilutes shareholders.


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