Microsoft’s recent gains on optimism about its AI capabilities have prompted investors to question whether the stock’s premium valuation remains justified. While some view the company’s cloud and AI unit as a long-term growth driver, others warn lofty multiples could limit further upside.

In light of potential tech pullbacks, analysts suggested reallocating a portion of portfolios into energy and consumer staples names. These ‘boring’ sectors are expected to provide more stable dividend yields and lower beta compared to high-growth tech shares.