Microsoft’s Stability and Diversification Make It a Reliable Choice for Investors During Volatile Markets

Based on the analysis provided in the text, the author suggests investing in Microsoft due to its stability and diversified business segments beyond AI. Although Microsoft’s stock may not experience explosive growth during AI rallies, the company’s consistent revenue, profits, and cash flow make it a reliable choice for investors during volatile markets. Additionally, Microsoft’s leadership in cloud services with Azure presents a strong foundation for AI model building and running through AWS integration. Conversely, the author advises avoiding C3.ai due to its heavy reliance on a single customer, Baker Hughes, and significant financial losses, making profitability uncertain. The author notes that C3.ai’s stock has already given back most of its 12-month gains. The analysis highlights the importance of careful consideration when selecting AI stocks, as not all companies in the space are equally promising.