Morgan Stanley Reaffirms Microsoft’s AI Leadership Amid Steady IT Budget Growth
Morgan Stanley's Keith Weiss, a top-ranked analyst, underscores Microsoft's dominant position in the AI race following the firm's Q3 CIO survey. The tech giant, instrumental in integrating OpenAI's technology into mainstream applications, continues to shape the AI landscape. Enterprise IT budgets are projected to grow at 3.6% in 2025, with software leading sector growth at 3.8%. Early 2026 estimates suggest a slight acceleration to 3.8%, still below the decade-long average of 4.1%.
Microsoft remains the prime beneficiary of generative AI spending and cloud migration, according to Weiss. The survey highlights sustained confidence in software's expansion, with 2026 growth pegged at 3.9%. This environment creates fertile ground for tech leaders, though broader budget growth remains tempered compared to historical norms.
