9 Trending AI Stocks on Latest News and Ratings

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) uses AI across its cloud services, productivity tools, and business solutions to enhance automation, security, and user experience. Its AI initiatives include intelligent cloud services, AI-driven applications for business operations, and advanced capabilities in language processing and cloud computing.

Omidia, a technology consultancy estimates that Microsoft purchased 485,000 of Nvidia’s Hopper GPUs in 2024, as reported by Financial Times. The company significantly outpaced rivals like Meta, which bought 224,000, and Chinese companies ByteDance and Tencent, each acquiring around 230,000 units. The demand for Nvidia chips surged as Big Tech invested billions in AI infrastructure to stay competitive.

Microsoft’s investment in Nvidia chips more than tripled from 2023, driven by its AI services and Azure cloud platform, which supports OpenAI and other clients, the report stated. Despite Nvidia’s dominance, the rise of custom AI chips and concerns about slower growth and U.S.-China trade restrictions have tempered its stock performance. Omdia estimates that 43% of server spending in 2024 went to Nvidia, reflecting peak demand. You can also read our report: Nvidia’s (NVDA) Dependence On Microsoft (MSFT) Is A Non-Issue With Its Tech Dominance.