10 Latest AI News and Ratings on Investors’ Radar

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) offers AI-powered cloud and business solutions, boosting efficiency, security, and AI innovation.

On January 30, Morgan Stanley lowered its price target for Microsoft from $540 to $530 but maintained an Overweight rating. The firm highlighted investor concerns related to FX headwinds, margin pressures, and losses from OpenAI and Cruise. It also raises doubts about AI revenue contributions in FY25 due to uncertainties around Azure’s growth and the adoption of M365 Copilot. Additionally, concerns persist about Microsoft’s competitive position due to its changing relationship with OpenAI and the impact of DeepSeek on the AI landscape.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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