12 Best Fortune 500 Stocks To Buy According to Hedge Funds

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives. The company does business worldwide and has offices in more than 100 countries.

Microsoft Corporation (NASDAQ:MSFT) had an impressive Q2 2025, reporting EPS of $3.23 and beating market expectations of $3.11. Revenue for the quarter came in at $69.6 billion, up 12.3% YoY and above market estimates. This strong performance was driven by a 21% increase in cloud revenue, although challenges remain in Azure’s growth. The tech giant’s Q2 Cloud revenue grew 21% YoY to $40.9 billion, surpassing $40 billion for the first time. Microsoft’s AI business has also now surpassed an annual revenue run rate of $13 billion, up 175% YoY. The company also returned $9.7 billion to shareholders in the form of dividends and share repurchases in Q2 of 2025.

Microsoft Corporation (NASDAQ:MSFT) unveiled a significant breakthrough in the field of quantum computing this month with Majorana 1. It is the world’s first quantum chip powered by a new Topological Core architecture that Microsoft expects will realize quantum computers capable of solving meaningful, industrial-scale problems in years, not decades.

Bretton Capital Management stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) has become the go-to provider of computing services for many emerging AI companies, and its franchise is much more diversified than Alphabet’s, making it a net beneficiary of the AI arms race. Demand for its cloud computing services continued to grow, and the rest of its business (Orce, Windows, Xbox, GitHub, LinkedIn) are also thriving, sending earnings per share up 22% while the stock returned 13%.”