Microsoft Corporation has been given a Buy rating by UBS due to its strong position in the market for operating systems and software for PCs and servers.

The company generates a significant portion of its revenue from the sale of operating systems and application development tools, with key products including Azure, SQL Server, and Windows.

Microsoft also earns a substantial amount of revenue from cloud-based software applications, which account for 25% of its net sales. This segment includes popular productivity tools such as Microsoft 365, Dynamics 365, and collaborative platforms like Microsoft Teams and Skype.

Furthermore, Microsoft is expanding its presence in the gaming sector, with video gaming hardware and software contributing 8.8% to its overall sales.

The United States is a crucial market for Microsoft, representing 50.9% of its net sales.

The company's diverse revenue streams, including enterprise services and hardware sales, position it well for continued growth in the competitive technology landscape.