10 AI News and Ratings Too Important to Miss

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-driven cloud, productivity, and business solutions, enhancing efficiency and security while making significant AI investments.

On January 30, JPMorgan analyst Mark Murphy said that the firm has a positive outlook on Microsoft, maintaining an Overweight rating with a $465 price target. Despite concerns over near-term Azure growth, which is expected to fall below consensus, Microsoft’s FQ3 guidance for Azure growth is in line with predictions. The firm highlighted a significant boost in Commercial Bookings, driven by OpenAI’s large commitment, which should alleviate concerns about Microsoft’s relationship with OpenAI. The launch of DeepSeek R1 and Microsoft’s plans for CapEx moderation indicate long-term strategic investments. Overall, JPMorgan sees Microsoft as a structural share gainer, focusing on efficiency and investments in AI, security, and automation. Murphy noted:

“While MSFT continues to encounter some AI capacity constraints and scale motion speed bumps modestly restricting Azure growth, we see it planting the longer-term seeds for success across Security, Teams, Power Apps and now the forward-looking OpenAI / ChatGPT investments. In addition, limited headcount growth shows the commitment to efficiency and alignment of OpEx to the new environment. In summary, we continue to see Microsoft as a structural share gainer, while the fundamental trends of modernization and automation remain intact long-term.”