10 Must-Watch AI Stocks Dominating Headlines

1.    Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On February 5^th, Daiwa Securities adjusted their price target on the stock to $533 from $520, keeping its “Buy” rating. The firm believes Microsoft’s earnings report in January was underwhelming. Even though the company beat top-line and bottom-line estimates, cloud revenues were disappointing. The company also forecast disappointing growth in its cloud computing business with investors worrying about big spending, vague artificial intelligence revenue, and cheaper AI models from China. Its Azure unit reported revenue growth of 31% in the quarter, which missed Visible Alpha estimates of 31.8%. Meanwhile, capital expenditures were $22.6 billion, above analysts’ consensus estimate of $20.95 billion.

“We believe the underwhelming earnings release will ultimately present a solid entry opportunity in view of a longer-term horizon, partly since negative catalysts seem to have played out for now.”

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some 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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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