10 AI Stocks Making Headlines This Week

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On March 26, TD Cowen analysts noted that Microsoft has abandoned data center projects set to use 2 gigawatts of electricity in the U.S. and Europe in the last six months. This is because of an oversupply relative to its current demand forecast.

Analysts led by Michael Elias said in a note that these withdrawals from new capacity leasing have been largely driven by the company’s decision not to support additional training workloads from OpenAI. The firm’s supply checks also reveal that Microsoft’s pullback has led to Alphabet’s Google and Meta stepping in to backfill the capacity in international markets and the U.S., respectively. In response, Microsoft noted that “strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions”.