10 AI News You Should Definitely Take a Look At

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides a range of AI-powered solutions, such as cloud services, productivity tools, and business applications, to enhance operations and security, while making significant investments in AI development.

On January 22, Jefferies analyst Brent Thill maintained a Buy rating on Microsoft with a price target of $500. He believes the company’s expectations for 10% year-over-year growth in Q2 are achievable, even with tougher comparisons to last year. Despite the stock being down since Q1, Thill sees growth potential, especially with Azure, M365 Copilot, and strong capital spending. He remains positive on Microsoft’s long-term prospects and AI developments and the price target of $550 represents about 36 times the company’s expected earnings in FY26.

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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