10 Best Major Stocks to Buy According to Hedge Funds

2. Microsoft Corporation (NASDAQ:MSFT)

No. of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a leading developer of computer software, operating systems, artificial intelligence, and cloud computing. The company’s strongest unit is its cloud business, which generates the most revenue.

On February 11, Microsoft Corporation (NASDAQ:MSFT) announced an expanded partnership with Anduril, an American defense technology company, to begin the next phase of the U.S. Army’s Integrated Visual Augmentation System (IVAS) program. This deal will allow Microsoft Azure to be Anduril’s go-to hyperscale cloud for all workloads related to IVAS and Anduril AI technologies.

RiverPark Advisors, an investment advisory firm, discussed Microsoft Corporation (NASDAQ:MSFT) in its “RiverPark Large Growth Fund” third quarter 2024 investor letter. The investment firm noted that MSFT is expected to accelerate growth in the second half of fiscal 2025 as more AI capacity comes online. RiverPark Advisors highlighted that the company’s cloud-based services are now generating the most revenue. Here is what RiverPark Advisors mentioned in the Q3 2024 investor letter.

“Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $200 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to return to shareholders and use for acquisitions.”