10 AI News and Ratings Investors Should Take a Look At

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and substantial AI investments

After Microsoft (NASDAQ:MSFT) reported earnings on January 29, DA Davidson maintained a Neutral rating on Microsoft with a $425 price target and noted a lack of acceleration in Azure growth and an increase in capital expenditures. While AI demand remains strong, core Azure services (excluding AI) are slowing, which is leading management to retract previous expectations of a recovery in the second half of the year. Investors are looking for clarity on when AI-driven revenue will compensate for the decline in traditional Azure services.