10 Buzzing AI Stocks on Latest News and Analyst Ratings

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1. Microsoft Corp (NASDAQ:MSFT)

Number of Hedge Fund Investors: 279

Microsoft Corp (NASDAQ:MSFT) is trending after the company announced a dividend hike and a $60 billion stock buyback program. Mizuho Securities recently reaffirmed its Outperform rating on the stock with a $480 price target, with analyst Gregg Moskowitz noting that the buyback amount matches what was announced three years ago, and no change is expected in the repurchase pace.

Moskowitz highlighted Microsoft Corp (NASDAQ:MSFT) long-term growth potential, emphasizing the significant opportunities from generative AI adoption and the company’s ability to monetize it.

Mar Vista Focus strategy stated the following regarding 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.”

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.

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