12 Best Dow Stocks to Buy Right Now

2. Microsoft Corporation (NASDAQ:MSFT)

No. of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech giant. The company has unmatched achievements within the enterprise ecosystem, driven by integrated solutions designed specifically for business needs. Microsoft’s Intelligent Cloud segment, Azure, has become the company’s leading growth driver.

In FY2024, Microsoft Corporation (NASDAQ:MSFT) generated $211 billion in revenue, mainly driven by Azure as it accounted for 43% of the total sales. At 22%, Azure holds the second-largest share of the global cloud market after AWS. Azure’s hybrid cloud features effectively merge on-premises and cloud-based systems, making it highly efficient for enterprise customers. The segment’s 67% gross margin in 2024 reflects its scalability and profitability across the company’s cloud services, playing a vital role in MSFT’s overall business growth.

In Q1 FY2025, Microsoft Corporation’s revenue was reported at $65.6 billion, up 16% from a year ago. Operating income was recorded at around $30.6 billion, up by 14% year-over-year. The company’s cloud segment experienced a 33% increase in Azure and other cloud services. The company ended Q1 with more than $20.8 billion in cash and cash equivalents. The growing AI infrastructure in the U.S. will allow Microsoft to expand its cloud operations and integrate with new clients.