10 AI Stocks on the Move

Page 9 of 9

1.    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 April 14, UBS lowered the firm’s price target on the stock to $480 from $510 and kept a “Buy” rating on the shares. The firm’s price target revision comes after Microsoft’s formal acknowledgement that it is slowing or pausing some data center projects. The firm’s evaluation reveals that Microsoft’s adjustments are most likely not AI demand-related, and that the pausing activity isn’t a materially negative AI demand signal. The analyst further told investors in a research note that any capacity changes related to OpenAI can be absorbed by Oracle and others.

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

Page 9 of 9