Microsoft stock currently trades at a price-to-earnings (P/E) ratio of 35.4, which is a 7.5% premium to its 10-year average of 32.9. It's also a premium to the tech-heavy Nasdaq-100 index, which includes Microsoft's big-tech peers and currently has a P/E ratio of 32.5.

Nvidia has significantly outperformed Microsoft stock over the past couple of years. The post Better artificial intelligence (AI) stock for 2025: Nvidia vs. Microsoft appeared first on The Motley Fool Australia.

On January 20, 2025, within hours of taking the oath of office for the second time, President Donald Trump issued an executive order that revoked an executive order from the prior administration regarding the use of artificial intelligence (AI).

At over 50 times earnings, this is a pricey stock to own but that multiple comes down to 29 when looking at estimates for next year's profits. And in the longer run, the company may be an even better buy if demand for its AI-agents takes off.