10 Best Augmented Reality Stocks To Buy Now

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a tech giant poised to continue advancing its augmented reality offerings and integrating them with its AI technologies. Notably, the company’s HoloLens 2 has significant applications in academia and various professional industries. Microsoft Corporation (NASDAQ:MSFT)’s rapidly expanding cloud business also provides it with a substantial advantage in scaling the metaverse network. With the recent completion of its acquisition of video game giant Activision Blizzard, Microsoft Corporation (NASDAQ:MSFT) may also aggressively expand into the social metaverse space.

Microsoft Corporation (NASDAQ:MSFT)’s revenue grew 15% year-over-year in the fiscal fourth quarter, while net income rose to $22.04 billion, up from $20.08 billion, or $2.69 per share, in the same quarter last year. For the fiscal first quarter, Microsoft Corporation (NASDAQ:MSFT) expects revenue between $63.8 billion and $64.8 billion, indicating a 13.8% growth at the midpoint. Notably, revenue from Azure and other cloud services increased by 29% during the quarter.

Ahead of Microsoft Corporation’s (NASDAQ:MSFT) Q4 earnings report, UBS analysts had identified three key discussion points: Azure’s potential upside from AI and core demand, capital expenditure trends, and the growth trajectory of Office 365. The analysts reiterated a Buy rating and set a $520 price target for MSFT, highlighting the company’s significant involvement in AI as a major driver of future growth.

“CoreWeave’s revs and backlog growth trajectory is outstanding and with Microsoft as a major customer, we view this as a positive for AI infrastructure demand. We’re definitely in a tight IT budget backdrop, but the Azure demand signals are bullish.”

Additionally, Piper Sandler raised its price target for Microsoft Corporation (NASDAQ:MSFT) to $485 from $465, maintaining an Overweight rating. This adjustment reflects optimism about Microsoft’s cloud revenue growth prospects, with the firm’s analysis suggesting that the company’s cloud revenue could potentially double to over $200 billion by the end of fiscal year 2026.

ClearBridge Sustainability Leaders Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:

“The Strategy trailed the Russell 3000 Index benchmark largely due to our diversified positioning, although we maintain a considerable portfolio allocation to large cap AI-related companies. These positions were indeed among our top contributors in the quarter, such as Microsoft Corporation (NASDAQ:MSFT). The company is finding more ways to deploy AI for sustainability objectives such as its ability to better measure, predict and optimize complex systems, which can help its partner communities reduce wildfire risk.”