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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Leo Sun, The Motley FoolSun, September 28, 2025 at 3:00 PM GMT+2 5 min readMicrosoft crushed the S&P 500 over the past decade.Its growth was driven by its “mobile first, cloud first” mantra.Its stock isn’t cheap, but it still has a lot of upside potential.10 stocks we like better than Microsoft ›When Satya Nadella succeeded Steve Ballmer as Microsoft's (NASDAQ: MSFT) CEO on Feb. 4, 2014, many investors dismissed the tech giant as a slow-growth stalwart with limited upside potential. But if you had invested $10,000 in Microsoft on Nadella's first day on the job, your investment would be worth $140,000 today and paying out nearly $1,000 in annual dividends.That same investment in an S&P 500 index fund would only be worth about $38,000 today. Let's see why Microsoft crushed the market -- and if it's still a good stock to buy.Image source: Getty Images.Under Ballmer, Microsoft struggled to keep pace with Amazon (NASDAQ: AMZN), Alphabet's Google (NASDAQ: GOOG) (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL) in the mobile and cloud markets. Its Windows and Office products still relied on periodic desktop upgrades, and its Windows Phones couldn't keep up with iPhones and Androids.But after Nadella took over, Microsoft adopted an ambitious "mobile first, cloud first" strategy. It transformed its Office desktop software into cloud-based services, expanded its Azure cloud infrastructure platform, and integrated those upgrades into Windows. It also scrapped its Windows Phone program, launched iOS and Android versions of its top productivity apps, rolled out more Surface devices, and expanded its Xbox business with new products and bold acquisitions.Microsoft launched more AI services to process all the data that flowed through that sprawling ecosystem. It also started to accumulate a big stake in OpenAI -- the creator of ChatGPT and other generative AI applications -- in 2019. It then integrated OpenAI's tools into its Bing search engine, Azure's cloud platform, and its Copilot AI services.Microsoft's aggressive investments in the mobile, cloud, and AI markets initially squeezed its margins. But from fiscal 2015 to fiscal 2025 (which ended this June), its revenue grew at a compound annual growth rate (CAGR) of 12%, its gross margin expanded from 64.7% to 68.8%, and its earnings per share (EPS) increased at a CAGR of 5%. It maintained that momentum even as the pandemic, inflation, rising interest rates, and geopolitical conflicts rattled the global economy.Most of Microsoft's recent growth was driven by its cloud-based services. Azure is now the world's second-largest cloud infrastructure platform after Amazon Web Services (AWS), and its Office suite -- which was rebranded as Microsoft 365 in 2020 -- holds a near-duopoly in the productivity software market with Google Workspace.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,710.50 -3.00 (-0.04%)Dow Futures46,596.00 -16.00 (-0.03%)Nasdaq Futures24,819.75 -18.00 (-0.07%)Russell 2000 Futures2,449.50 -1.30 (-0.05%)VIX16.12 +0.83 (+5.43%)Gold3,866.10 +10.90 (+0.28%)PortfolioSign in to access your portfolioSign inTop gainersWOLF Wolfspeed, Inc. 22.10 +20.89 (+1,726.45%)MRUS Merus N.V. 93.67 +24.78 (+35.97%)GRAL GRAIL, Inc. 58.77 +8.91 (+17.87%)SNDK Sandisk Corporation 113.50 +16.38 (+16.87%)ETSY Etsy, Inc. 74.34 +10.16 (+15.83%)Top losersMENS Jyong Biotech Ltd. 50.00 -9.74 (-16.30%)CART Maplebear Inc. 37.92 -4.40 (-10.40%)FORD Forward Industries, Inc. 26.51 -2.72 (-9.31%)PGY Pagaya Technologies Ltd. 31.76 -2.88 (-8.31%)UPST Upstart Holdings, Inc. 52.74 -4.60 (-8.02%)Most activeTLRY Tilray Brands, Inc. 1.8500 +0.7000 (+60.87%)SNAP Snap Inc. 8.40 +0.13 (+1.57%)NVDA NVIDIA Corporation 181.85 +3.66 (+2.05%)OPEN Opendoor Technologies Inc. 8.20 -0.61 (-6.92%)INTC Intel Corporation 34.48 -1.02 (-2.87%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersWOLF Wolfspeed, Inc. 22.10 +20.89 (+1,726.45%)TLRY Tilray Brands, Inc. 1.8500 +0.7000 (+60.87%)HOOD Robinhood Markets, Inc. 136.72 +14.94 (+12.27%)PYPL PayPal Holdings, Inc. 69.68 +2.38 (+3.54%)ETSY Etsy, Inc. 74.34 +10.16 (+15.83%)Top economic events