10 Best Stocks to Buy for the Next 3 Months

2. Microsoft Corporation (NASDAQ:MSFT)

No. of Hedge Fund Holders: 317

Upside Potential: 29.39%

Microsoft Corporation (NASDAQ:MSFT) is a pioneer in the technology sector. A global giant offering a wide range of software, services, and devices, with operations divided into three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment focuses on workplace and communication tools, including Microsoft 365, Teams, LinkedIn, and Dynamics 365. The Intelligent Cloud segment provides cloud-based services and server products, notably Azure, Visual Studio, and platforms such as GitHub. The More Personal Computing segment encompasses Windows operating systems, Surface devices, and gaming hardware brands such as Xbox, Game Pass, as well as managing search and news advertising through Bing, Microsoft News, and Edge.

Microsoft Corporation’s (NASDAQ:MSFT) earnings report for Q2 of 2025 revealed revenue of $69.63 billion, up 12.27%, clearing analysts’ estimates by $823.09 million and an EPS of $3.23. The AI segment contributed $13 billion to revenue, while revenue from cloud services was $40.9 billion, up 21%. The company’s Chairman and Chief Executive Officer, Satya Nadella, commented on the company’s cloud services’ performance, stating:

“Enterprises are beginning to move from proof-of-concepts to enterprise-wide deployments to unlock the full ROI of AI. And our AI business has now surpassed an annual revenue run rate of $13 billion up 175% year-over-year.”

Last year, Mr. Satya Nadella made a trip to Malaysia, as US tech firms continue to reduce their dependence on China as a regional partner due to a shift in US Government policies. Mr. Nadella announced that Microsoft Corporation (NASDAQ:MSFT) plans to launch its first cloud region in Malaysia with three data centers by mid-2025. More recently, the company also announced scaling back operations of Skype and transitioning existing users to Microsoft Teams instead. With an upside potential of nearly 30%, MSFT is one of the best stocks to buy.