12 Most Buzzing Stocks to Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Volume:  53.8 Million

Average Volume (3-Month): 21.3 Million

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) generated solid results in the fiscal second quarter of 2025. For the quarter ended December 31, 2024, MSFT generated $69.6 billion in revenue, up by 12%, and $24.1 billion in net income, up by 10%. The company attributes its revenue growth to its cloud and AI business. In an impressive feat, the company saw a 175% increase in revenue from its AI business reaching $13 billion. Similarly, its cloud business generated $40.9 billion in revenue, up by 21% year-over-year.

The stock went higher after reporting solid financial results in the fiscal second quarter of 2025. On January 31, Sachin Mittal, an analyst at DBS, maintained a buy rating on the stock, retaining a price target of $531. Mittal maintained a buy rating on MSFT due to its strong financial results, especially in its cloud and AI business. In addition to that, the analyst expects Microsoft (NASDAQ:MSFT) to expand its leadership position in the productivity software market and witness significant growth opportunities from its investments in AI.

Microsoft Corporation (NASDAQ:MSFT) plans to continue investing in its cloud and AI business, pushing innovations across its tech stack in an attempt to capture the massive opportunity ahead. Analysts are also bullish on the stock and their median price target of $500 points to an upside of 20.5%.

While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that certain 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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