11 Trending AI Stocks on Latest News and Ratings

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) offers AI-driven solutions through its Intelligent Cloud segment, including Azure cloud services, Nuance’s AI technologies, and GitHub. It also integrates AI across its productivity tools, such as Microsoft 365 Copilot, and Dynamics 365 for business applications.

On December 7, Axios reported that the U.S. has approved exporting advanced AI chips to a Microsoft (NASDAQ:MSFT) facility in the UAE, part of Microsoft’s collaboration with Emirati AI firm G42. This partnership aims to counter China’s influence in the UAE’s tech sector and expand U.S. AI technology globally. However, concerns have been raised about potential Chinese access to the technology, given G42’s past ties to Chinese firms.

G42, chaired by UAE national security adviser Sheikh Tahnoon bin Zayed al-Nahyan, has worked to ease U.S. concerns by removing Huawei hardware and divesting from Chinese investments, though some assets remain linked to Sheikh Tahnoon’s parent company. Restrictions on the export license prohibit the use of the chips by individuals or entities from nations under U.S. arms embargoes, including China, the report stated.

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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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