• Pershing Square has disclosed a new position in Microsoft, signaling a fresh bullish stance.
  • Ackman highlights Microsoft's leadership in cloud and AI as key drivers for long-term growth.
  • Shares rose 1.2% following the disclosure, reflecting investor optimism.

Billionaire investor Bill Ackman revealed a new stake in Microsoft Corp. on Friday, betting that the software giant’s dominance in cloud computing and artificial intelligence will deliver outsized returns. Pershing Square Capital Management disclosed the position in a regulatory filing, according to people familiar with the matter.

“Microsoft offers a compelling valuation relative to its long-term growth trajectory in Azure and AI-enabled productivity tools like Copilot,” Ackman said in a statement. The filing comes amid a broader rally in tech stocks, with Microsoft shares gaining 1.2% in early trading.

The move marks a notable shift for Ackman, who has previously focused on consumer and financial stocks. Microsoft, with a market capitalization of over $3 trillion, is the world’s second-largest company by value. Its Azure cloud platform competes with Amazon Web Services and Google Cloud, while its Copilot AI assistant is embedded across its Office 365 suite.

Ackman’s bet aligns with growing investor enthusiasm for AI-related plays. Microsoft has invested heavily in OpenAI and integrated the technology into its products, positioning itself as a key beneficiary of enterprise AI adoption. “The durability of Microsoft’s revenue streams from enterprise software and cloud services is unmatched,” Ackman added.

The disclosure comes ahead of Pershing Square’s quarterly 13F filing, which will detail the size of the position. Ackman declined to comment on the exact number of shares purchased.

Analysts have noted that Microsoft’s valuation, at roughly 30 times forward earnings, is elevated but justified by its growth prospects. “Ackman’s entry could boost retail investor sentiment,” said a technology analyst. “It’s a high-profile endorsement of Microsoft’s AI strategy.”

Shares of Microsoft have risen 12% year-to-date, outpacing the broader market. The stock closed at $524.60 on Thursday.