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Microsoft’s AI Monetization Moment: Goldman Sachs Forecasts a Mag 7 Comeback
CNBC Technology April 6, 2026
Despite being the worst-performing 'Magnificent Seven' stock this year, Microsoft is poised for a turnaround as AI moves from a capital expense to a revenue driver. Goldman Sachs predicts that the deep integration of AI into the Microsoft 365 suite will finally reflect in the company's bottom line, rewarding patient investors.
Key Intelligence
- •Did you hear that Microsoft is actually the laggard of the Mag 7 this year? Goldman Sachs says that’s about to change as AI integration hits its stride.
- •Apparently, the market is shifting its focus from how much Microsoft is spending on AI to how much it's actually earning from it.
- •Analysts believe the 'killer app' for AI isn't a standalone tool, but the Copilot features being baked directly into the Excel and Word workflows we use every day.
- •Microsoft’s massive enterprise distribution network gives it a 'moat' that newer AI startups simply cannot replicate overnight.
- •Expect a shift in the narrative: we are moving from the 'infrastructure phase' of AI to the 'software monetization phase.'
- •Goldman points to the Microsoft 365 ecosystem as the primary catalyst for high-margin growth that the market hasn't fully priced in yet.