The US stock market has gotten off to a sluggish start to the year so far. However, that has not taken away from the potential that many are seeking in the industry for the rest of 2025. Among the most promising shares to buy is Microsoft (MSFT) which has been called an “AI leader” by Scotiabank amid a recently increased $470 price target.

The company has become one of the most diversified in the tech sector, and its ambitious plans have its data center infrastructure set to expand throughout this year. Although its capital expenditures are high, there is no doubt that its investments have been smart thus far. Moreover, they should begin to pay off very soon.

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Microsoft to Lead AI Sector? Scotiabank Champions Stock Amid Sluggish 2025

Earlier this year, Microsoft announced a groundbreaking $2.7 billion data center investment plan. The move brought optimism and concern from different sects of investors. Some believed in the potential of continued investment. However, others questioned the rampant spending that the firm has embraced throughout the last several years.

Now, the company has gotten yet another solid endorsement from analysts. Indeed, Microsoft (MSFT) has been called an AI leader by Scotiabank amid a recent $470 price target. Specifically, Patrick Colville, an analyst at the firm called the company the “leading horsemen of the AI revolution.

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The analysts note that 2025 is expected to be a major turning point for the company. Its business has ramped up A Invesitmres, and it will reap the rewards within its Azure and 365 Copilot services. Moreover, it had already established a connection with ChatGPT developer OpenAI. That will continue to serve the company’s interest in the sector and demand continues to grow.

Colville projected that Microsoft’s AI-driven revenue will make up as much as 60% of its incremental earnings over the next two fiscal years. Statements like that make the company a solid buy, especially at the current entry point. With the ongoing market downturn, MSFT has a 55% upside, according to CNN data.