1 Magnificent Stock Down 25% to Buy Like There's No Tomorrow

By Keithen Drury – Mar 21, 2026 at 1:30PM ESTKey PointsMicrosoft's cloud computing platform is seeing incredible growth.Shares of the tech giant haven't been this cheap since early 2023. There is perhaps no better value in the market than Microsoft (MSFT 1.92%) right now. It has been several years since anyone has been able to say that, and the last time Microsoft's stock was this cheap, it delivered huge gains for shareholders in a short time frame. I think Microsoft is a stock investors should be loading up on like there's no tomorrow. Here's why. Image source: Getty Images. Microsoft's stock rarely gets this cheap Microsoft does a lot as a business. It has a gaming division with consumer hardware, business productivity software, cloud computing, and a huge investment in OpenAI, the makers of ChatGPT. This makes Microsoft a complex business to value, but with the rise of artificial intelligence (AI), Microsoft is positioned incredibly well to profit from its proliferation. The biggest exposure Microsoft has to this trend is through its cloud computing business, Azure. Azure has become a top option to build and run AI models because Microsoft is staying neutral and not pushing one model or another on the user. Developers can pick from countless generative AI models to utilize, giving them the freedom to tailor their end product freely. ExpandNASDAQ: MSFTMicrosoftToday's Change(-1.92%) $-7.48Current Price$381.54Key Data PointsMarket Cap$2.8TDay's Range$380.12 - $386.7952wk Range$344.79 - $555.45Volume1.7MAvg Vol34MGross Margin68.59%Dividend Yield0.91% This strategy has paid off, and Azure is Microsoft's fastest-growing segment, with revenue increasing 39% year over year during its last quarter. Overall, Microsoft is doing incredibly well, with revenue rising 17% as a company. That normally results in a premium valuation, but that's not the case. Microsoft's stock has fallen from grace and now sits at levels rarely seen this past decade. I prefer to value Microsoft's stock using its operating price-to-earnings ratio because it ignores one-time expenses and investment gains on its OpenAI investment. From this standpoint, Microsoft's stock has rarely been this cheap. MSFT Operating PE Ratio data by YCharts At the start of 2023, the last time it was this cheap, it was a clear buying opportunity. Microsoft's stock gained over 50% that year, and the same could happen this year if Microsoft's stock finds favor with the market. Because nothing has changed with Microsoft's core investment thesis, I'm confident that today's sale price is a gift for investors, and anyone looking for a top AI stock to buy right now should look no further. Microsoft will be a central part of AI deployment in the world, and there are no signs of it slowing down. This should give investors all the confidence in the world that they need to buy the stock now.Read NextMar 20, 2026 •By Rick OrfordMicrosoft Stock Is Cheap, and Could Be a Generational OpportunityMar 20, 2026 •By Keithen DruryBetter Buy Now: Alphabet vs. MicrosoftMar 19, 2026 •By Daniel SparksMicrosoft Stock Has Been Absolutely Slammed This Year.

Is It Finally Time to Buy?Mar 19, 2026 •By John BallardThe Best Stocks to Buy With $1,000 Right NowMar 18, 2026 •By Manali Pradhan, CFAWall Street Is Wrong About This AI Cloud Stock for 2026Mar 18, 2026 •By Motley Fool YouTubeMicrosoft: A Deep Dive Into the Tech Giant's FutureAbout the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedMicrosoftNASDAQ: MSFT$381.54(-1.92%)-$7.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.