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 February 24, Mark Moerdler from Bernstein maintained a Buy rating on the stock with a price target of $511.00. The rating has been updated after news spread over the weekend that Microsoft has canceled some leases for US data center capacity.
TD Cowen analysts led by Michael Elias broke the news, citing channel checks, to reveal that the company has voided leases in the US totaling “a couple of hundred megawatts” of capacity. Following the news, Moelder from Bernstein said that this could indicate lower demand, particularly after lackluster quarterly results from major cloud companies
“Microsoft needed to meet demand and had a great deal of difficulty finding capacity. Management may, therefore, have rented, even at a meaningful premium, data centers and GPU capacity and negotiated more deals for additional future capacity than they needed”.
-Moelder.
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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
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