10 Good Stocks to Buy According to Hedge Funds

2. Microsoft Corporation (NASDAQ:MSFT)

No of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is a leading global technology company that develops and supports software, services, devices, and cloud solutions. With its cloud-first and AI-driven approach, the company continues to drive digital transformation across businesses and consumers worldwide.

Microsoft Corporation (NASDAQ:MSFT) has announced a strategic shift in its communications portfolio, with the planned shutdown of Skype on May 5, 2025. The decision, disclosed on February 28, 2025, aligns with the company’s broader focus on Microsoft Teams, reflecting its continued investment in enterprise collaboration solutions. The company has assured that the transition will not result in job cuts, emphasizing a seamless migration for users.

Microsoft Corporation (NASDAQ:MSFT) reported strong Q2 FY25 results, driven by continued growth in cloud and AI services. Revenue came in at $69.6 billion, up 12% YoY, while operating income rose 17% to $31.7 billion. Net income increased 10% to $24.1 billion, with diluted EPS reaching $3.23, also up 10% YoY. The company’s Cloud revenue surged 21% YoY to $40.9 billion, reflecting the company’s deep investment in AI and enterprise solutions. CEO Satya Nadella highlighted that Microsoft Corporation (NASDAQ:MSFT)’s AI business has surpassed an annual run rate of $13 billion, growing 175% YoY.