It’s a Good Time to Buy GOOG and MSFT, Veteran Investor Says

In the ever-shifting landscape of tech investing, veteran investor David Harden of Summit Global Investments has issued a bold recommendation: now is the time to buy Alphabet (GOOG) and Microsoft (MSFT). His rationale, grounded in financial strength, strategic positioning, and geopolitical resilience, underscores a contrarian view in a market still wary of AI volatility.

Alphabet: Cash Flow, Cloud, and the AI Edge
Alphabet’s recent performance has been nothing short of robust. The company generated $25 billion in free cash flow in Q1 2025, a figure Harden calls “unassailable.” This financial firepower stems from double-digit year-over-year revenue growth, driven by its core search business—up 13%—and the rapid monetization of generative AI (GenAI) in search results. Wedgewood Partners noted that Alphabet’s GenAI initiatives are already yielding revenue comparable to traditional search, a testament to its ability to innovate without disrupting its core engine.

Yet Alphabet faces headwinds. A second antitrust ruling labeling it a “monopolist” could strain its stock, as legal battles often weigh on investor sentiment. Still, Harden argues that its U.S.-centric revenue mix—less exposed to trade tariffs than peers—and a reasonable valuation make it a safer bet.

Microsoft: Stability in a Volatile Market
Microsoft, meanwhile, offers a blend of stability and growth. Its Q4 2024 revenue hit $69.63 billion, a 12.27% year-over-year rise, with Azure’s cloud segment contributing 43% of total revenue. This dominance in enterprise tech has drawn the attention of billionaire David Tepper, whose Appaloosa Management holds $408.86 million in Microsoft shares.

Harden calls Microsoft “safer than Nvidia” because of its entrenched position in corporate IT and its pivot to AI-driven tools like Teams and Azure. Even the planned shutdown of Skype by May 2025—a move to consolidate communication tools—reflects strategic focus over short-term disruption.

The Geopolitical Angle and Risks
Harden’s bullish stance isn’t just about financials. He highlights Europe’s growing scrutiny of U.S. cloud providers, driven by tariff tensions and data sovereignty concerns. While this could pressure Microsoft and Alphabet, their deep enterprise ties and localized cloud strategies—like OVHCloud’s push for European dominance—offer a buffer.

Yet risks linger. Alphabet’s antitrust battles and Microsoft’s reliance on Azure’s continued growth remain vulnerabilities. Harden advises patience with rivals like Nvidia, where volatility could outpace rewards in the near term.

Conclusion: A Balanced Play for Growth
Harden’s recommendations are backed by solid data. Alphabet’s $25 billion cash flow and Microsoft’s 12.27% revenue growth reflect sustainable engines. Their valuations—Alphabet at 24x forward earnings and Microsoft at 28x—remain reasonable compared to high-flying AI stocks trading at 50x or more.

While geopolitical headwinds and regulatory risks loom, both companies have shown resilience. In early 2025, their stocks rose in pre-market trading, outperforming broader tech indices. Meanwhile, the unnamed AI stock mentioned in the analysis—trading at less than 5x earnings—hints at potential alternatives, but Harden’s focus on “industrial” tech giants aligns with long-term value.

For investors seeking steady growth amid uncertainty, GOOG and MSFT offer a compelling mix of cash flow, AI integration, and enterprise dominance. As Harden notes, “In volatile markets, stability isn’t just a refuge—it’s a growth engine.”

In sum, the veteran’s call to buy now hinges on a simple truth: these giants are not just surviving—they’re redefining the tech landscape.