10 AI News and Ratings You Should Not Miss

Page 9 of 9

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) offers AI-driven cloud, productivity, and business solutions, enhancing operations, security, and AI development.

After its earnings were reported on January 29, KeyBanc remained Overweight on Microsoft with a $575 price target, despite challenges posed by DeepSeek. Microsoft has adapted by incorporating DeepSeek into Azure and Copilot while showing flexibility in capital expenditure after FY25. Although AI-related capital expenditures are expected to remain significant, the company is balancing the disruptive potential of AI with caution regarding heavy infrastructure investments.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9