10 Best Magic Formula Stocks for 2025

3. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Gotham Asset Management’s Q4 2024 Stake: $95.28 million

Microsoft Corporation (NASDAQ:MSFT) is a global technology powerhouse best known for its flagship software products, which include the Windows operating system, Microsoft 365 suite, and Edge browser. In addition, the company provides video games, gaming hardware, and cloud services, which account for the most revenue generated.

Moreover, on February 11, Microsoft Corporation (NASDAQ:MSFT) announced an extended agreement with Anduril, an American defense technology company, to launch the next phase of the United States Army’s Integrated Visual Augmentation System (IVAS) program.

On January 6, Citi kept its buy rating on MSFT shares with a target price of $497. The company’s announcement that it intends to invest over $80 billion in capital expenditures for AI data centers in fiscal 2025 was important, despite a large portion of the American AI opportunity already being at a high level. Citi claims that the $80 billion covers almost all of Microsoft’s data center expenses for the fiscal year 2025.