10 AI Stocks On Wall Street’s Radar

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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 March 13, DA Davidson upgraded the stock to “Buy” from Neutral with a price target of $450, up from $425. According to the firm, Microsoft has moved to a more rational capex strategy and is “the best positioned Mag6 for a slowing consumer.”

“Our September downgrade was partially predicated on the poor ROI of Microsoft escalating the AI infrastructure buildout wars.”

However, the company now anticipated a flat sequential capex over the next couple of quarters with slower growth going into FY26. The firm has also pointed to Microsoft’s shift in AI infrastructure investment. The company is offloading certain capex burdens to partners like CoreWeave, Oracle, and SoftBank.

“The recent disclosure by Coreweave that Microsoft was a 62% customer indicates Microsoft is using Coreweave as overflow for workloads it is either not ready for or is not interested in.”

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. 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 30 Best Stocks to Buy Now According to Billionaires.

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