10 AI News You Probably Missed

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) prioritizes AI through its advanced cloud offerings, AI-enabled business applications, and language processing and computing technologies.

Cantor Fitzgerald initiated coverage of Microsoft (NASDAQ:MSFT) with an Overweight rating and a $509 price target. The analyst highlighted Microsoft’s leading position across various markets, emphasizing its Intelligent Cloud division, which is projected to grow from 35% of revenue in FY23 to 41% by FY26, driven primarily by Azure’s expansion from 58% to 76% within the division. The firm noted that Azure benefits from rapid AI-related revenue growth, supported by its broad infrastructure, platform offerings, and bundled services like Teams and security.

Analyst Thomas Blakey further noted:

“Checks on Copilot were mixed; positive on GitHub Copilots but lesser so on M365. That said, even less-than-stellar checks generally concluded they would cont. to trial with confidence products would improve. We believe the debate re: capex and ultimate ROI favors Microsoft not only related to potentially lower compute and infrastructure costs LT, but core AI is likely more inference-related, in our view, driving more recurring and sustainably growing topline sources if/when capex is normalized.”

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

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