12 Best Fundamental Stocks to Buy Now

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holdings: 279

10-Year Revenue Growth Rate: 10.76%

10-Year Net Income Growth Rate: 15.53%

Microsoft Corporation (NASDAQ:MSFT) is a global technology leader providing software, hardware, and cloud-based solutions to individuals and businesses worldwide. The company has been transitioning from a traditional software company and has become a comprehensive technology provider driving innovation and digital transformation across multiple industries.

Microsoft Corporation (NASDAQ:MSFT) is investing heavily in its cloud computing platform, Azure. The company is seeing significant demand for its Azure services, particularly in the area of AI. Microsoft Corporation (NASDAQ:MSFT) is expanding its Azure capacity, with new data centers being built in various regions around the world, including Brazil, Italy, Mexico, and Sweden. This expansion will enable the company to better serve its customers and meet the growing demand for cloud computing services. Additionally, Microsoft Corporation (NASDAQ:MSFT) is innovating across the full stack to optimize its fleet for AI workloads by offering the broadest selection of AI accelerators, including its first-party accelerator, Maia 100, as well as the latest GPUs from AMD and NVIDIA.

Another key area of focus for Microsoft Corporation (NASDAQ:MSFT) is the development of its AI-powered products and services. The company is advancing its Productivity and Business Processes segment, which includes Office 365, LinkedIn, and Dynamics 365. Recently, Microsoft Corporation (NASDAQ:MSFT) integrated 365 Copilot, an AI-powered assistant, into productivity tools such as Word, Excel, and Outlook, which has significantly boosted user engagement and business value. Furthermore, Microsoft Corporation (NASDAQ:MSFT) is extending its presence in the enterprise market with Dynamics 365 while also introducing industry-specific AI solutions, such as DAX Copilot for healthcare. These advancements are helping Microsoft Corporation (NASDAQ:MSFT) strengthen its market position and solidify its leadership in business applications.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) to grow, 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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