10 Best Internet of Things (IoT) Stocks to Buy

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT), a leading tech giant, is a pioneer in IoT solutions, providing customers with a full range of offerings, from IoT SaaS and PaaS to essential hardware components. The company’s extensive experience managing Windows devices remotely has been instrumental in building the powerful Azure IoT platform.

Microsoft Corporation (NASDAQ:MSFT) reported strong Q4 2024 results. Revenue increased 16% to $245.1 billion, driven by growth in all segments, particularly Azure and other cloud services. Net income rose 22% to $88.1 billion. Meanwhile, Microsoft Corporation (NASDAQ:MSFT)’s cloud revenue reached $36.8 billion, up 21% year-over-year.

With the company’s strong financial performance, analysts are optimistic about its future. The stock has received an average “Moderate Buy” rating with a price target of $494.72.

Here’s what Mar Vista Investment Partners, LLC said about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) continues to occupy a strong position, poised to capture market share as businesses, both large and small, navigate the transition to a digital-first landscape and embrace generative AI-driven solutions. The company’s commanding presence in the enterprise arena, combined with its comprehensive product portfolio encompassing Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), establishes it as a crucial provider of IT solutions for companies of all scales. Microsoft is effectively executing its strategy in a sizable market by offering a roadmap for digital transformation and adoption of innovative, AI-driven solutions, such as ChatGPT, while enhancing productivity and reducing costs. Consequently, we anticipate that Microsoft’s solutions should exhibit resilience even in a more challenging macroeconomic environment, supporting low-double-digit growth in intrinsic value within our investment horizon.”