Wall Street faced a flurry of earnings reports as companies updated their financials in a critical few weeks. Now, the best bets are starting to come into focus, with near- and long-term strategies beginning to form. Subsequently, Microsoft (MSFT) is perfectly positioned as one key business eyes $200 billion in revenue, as its stock could very well surge.

The company has been at the forefront of the AI and cloud computing races that have emerged in recent years. It invested $13 billion in OpenAI, a move that set it up to become a major player in the emerging technology. Yet, that may not be the business poised to pay the biggest dividends for the company in the long run.

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Microsoft Stock Looks to Surge as One Key Business Has $200B Potential

Entering the year, Wall Street had its eyes fixed on the tech sector. For the last several years, it has enjoyed increased demand, which saw Nvidia (NVDA) surge more than 170% in 2024. Among the host of companies that had the potential to make a splash, Microsoft was atop of many expert lists.

There was good reason for the optimism. In recent years, the company has diversified into key sectors with growing interest. Moreover, its growing capital expenditures could be set to pay off in a big way. Indeed, Microsoft (MSFT) has one business that could offer $200 billion in revenue as the stock becomes an interesting investment option.

Also Read: Microsoft (MSFT) Stock in “Pole Position” Morgan Stanley Says

In a recent investor letter, RiverPark Advisors noted Microsoft’s revenue and earnings growth that took place in Q4 of 2024. Moreover, they discussed that growth is driven by the company’s Azure business and, specifically, its operating margins. Additionally, they spoke to the company’s hope to “reaccelerate growth” in 2025, according to a Yahoo report.

RiverPark advisors claim that Azure has “the potential to grow to over $200 billion in annual revenue over the next decade.” Moreover, being held by 279 hedge funds, that potential is driving significant Microsoft investments. With double-digit revenue gains and earnings per share growth expected, the company could be unmatched in its trajectory over the next five years.