
Microsoft Corporation (NASDAQ: MSFT) is one of the Magnificent Seven stocks that continues to outperform the NASDAQ in 2025. As of Aug. 27, MSFT stock is up 18.6% in 2025, outpacing the tech index, which has an 11.9% gain.
Microsoft is at the forefront of many of the fastest-growing sectors within the tech space. The company has avenues for generating revenue from cloud computing and artificial intelligence (AI) to cybersecurity and gaming. More importantly, the company can turn that revenue into retained profit in the form of free cash flow (FCF).