10 Stocks Wall Street Is Calling Bullish Amid Market Turmoil

1. Microsoft Corporation (NASDAQ:MSFT) 

Microsoft Corporation is a developer and supporter of services, devices, software, and solutions. The company operates through The Intelligent Cloud, More Personal Computing, and Productivity and Business Processes segments.

Microsoft has disappointed investors in the last year or so, underperforming the broader market. The company continues to spend massively on AI infrastructure with no idea of a return on investment in sight.

Things could change soon though as analysts start noticing the recent price decline. D.A. Davidson recently upgraded the stock, boosting its price target from $425 to $450. Analysts believe the firm is the best positioned among the Mag6 stocks to deal with a consumer slowdown.

“While the extent of the consumer slowdown may still be unclear, we believe some slowdown is more likely than not. This would mean less risk for Microsoft’s earnings estimates than the rest of the mega caps, making it the most likely of the Mag6 to become defensive.”

Moreover, the company is also reconsidering its capex plans, shunning investments that it believes may be overkill in the backdrop of DeepSeek AI revelations.

“Evidence has emerged that Microsoft is now offloading less desirable capex to CoreWeave, Oracle and Softbank. We believe that Microsoft has decided to reduce capacity for OpenAI training in its data centers, as it recognizes their gains from pretraining have begun to hit a wall.”

Microsoft is second on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 317 hedge fund portfolios held MSFT at the end of the fourth quarter, which was 279 in the previous quarter. While we acknowledge the potential of MSFT as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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