The below are from morningstar. It is impressive that $MSFT is able to triple their revenue, while slightly improving their gross margin, and almost doubling their net profit margin, note this is margin and not actual $$$, which is 6x. These are pretty impressive numbers.
Now coming to valuation, it is pretty much in the same range as in the last 10 years. If you look at these numbers, nothing here shows the company valuation is driven by AI boom. One can question, how long $MSFT can sustain capex at $80 ~$100 B ranch, just looking at these profitability numbers, it seems they can.
So, the question is $MSFT with its massive investments moving from asset-light model (software company) to asset heavy model cloud+AI company, how will that impact margins, profitability. In the last 5 years, $MSFT has doubled its assets, yet their margins held up…
As long as their margins’ hold, growth continues, $MSFT valuation is within its historical levels. If one were to predict AI bubble probably $MSFT valuation has to go even higher.
https://www.morningstar.com/stocks/xnas/msft/key-metrics
https://www.morningstar.com/stocks/xnas/msft/valuation