10 Best Innovative Stocks to Invest in According to Hedge Funds

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a technology giant that is spending generously on artificial intelligence and data. As the company ventures into new technologies and AI, it does represent a breakthrough stock that can influence the future.

Microsoft Corporation (NASDAQ:MSFT) is part of the list because of its strategic investments, positioning it as a leader in AI. On October 31, Brent Bracelin, Piper Sandler equity research analyst of cloud software and analytics, appeared in an interview on Yahoo Finance to analyze the performance of MSFT. Bracelin suggests that the company’s AI business will cross $10 billion in revenue in only two and a half years, becoming its fastest-growing product yet. He adds that its AI business “has legs” to become the next $100 billion business for MSFT. While he agrees that MSFT is pouring a lot into AI, he highlights that more than half of it is dedicated to building land investments. The land investments will eventually “be filled with capacity” driving incremental revenue and profit for the company.

On the AI front, the company closed deals with startups and technology companies to run their workloads on Microsoft Azure, its cloud platform. On October 10, the company revealed several breakthrough AI capabilities in healthcare that offer medical imaging, clinical records management, and genomics. Previously on October 3, Microsoft Corporation (NASDAQ:MSFT) closed a partnership with Rezolve AI to develop innovative AI-backed online retail solutions.

Microsoft Corporation (NASDAQ:MSFT) is a long-standing company with immensely strong fundamentals. This coupled with its investments in AI and data make it one of the best innovative stocks to buy according to hedge finds.