10 Buzzing AI Stocks According to Goldman Sachs

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The CTO of the company, Kevin Scott, spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, remarking that it was super important for the business world to bring down the cost of compute associated with AI development. Scott underlined how one of the things that had supported all of the previous platform revolutions – personal computing, internet, smartphone, and cloud – had been the ability to move from silicon to networks to the low-level software layers that empowered the layers running on top of them to get exponentially cheaper over time. He noted that this was happening with AI, as evidenced by GPT-4 getting 12 times cheaper per token to do inference in May than at launch time.

Scott, who was an intern at Microsoft Corporation (NASDAQ:MSFT) before rising all the way to the top, noted that AI infrastructure had catalyzed a lot of similarities to big tech revolutions of the past. He detailed that because AI was a platform revolution, it was not narrow, where some company had a secret stash of infrastructure that only they had, but instead there was a huge community of people being inspired in a bunch of different ways by what the AI infrastructure was going to allow them to do. Scott said that trillion-dollar companies that are brand new were getting created due to these developments.