12 Best Stocks to Buy in 2025 for Beginners

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1. Microsoft Corporation (NASDAQ:MSFT)

10-year Revenue CAGR: 10.76%

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments. Analysts at Morgan Stanley believe that the company is in a “pole position” to benefit from the increasing demand for GenAI-powered applications, such as AI agents, which are autonomous programs wired to perform tasks without being told what to do. According to Markets and Markets, the market for AI agents is anticipated to reach $47 billion by 2030, and Microsoft Corporation (NASDAQ:MSFT) is likely to capitalize on these positive industry trends.

In addition, the company is preparing to spend around $80 billion on data centers, particularly for deploying, training, and operating cloud-based AI applications. Microsoft Corporation’s (NASDAQ:MSFT) partnership with OpenAI marks a significant milestone in its push into AI. Around 70% of the Fortune 500 use Microsoft 365 Copilot. Thus, it is in a favorable position to lead productivity software and is poised for long-term growth.

At the end of fiscal Q3 2024, 279 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT), with a total value of more than $91 billion. Among these hedge funds, the Bill & Melinda Gates Foundation Trust is the company’s leading stakeholder as of fiscal Q3 2024.

Overall, MSFT ranks first among the 12 best stocks to buy in 2025 for beginners. While we acknowledge the potential of these best stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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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