12 Stocks Most Held by Hedge Funds

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2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Investors: 279

Microsoft Corporation (NASDAQ:MSFT) is a leading technology company headquartered in Washington. The company has grown to become one of the world’s most influential and innovative technology companies, offering a wide range of software, services, and devices. The company’s core products include the Windows operating system, Microsoft Office, Azure Cloud services, and the Xbox gaming platform.

Microsoft Corporation (NASDAQ:MSFT) is at the forefront of the AI revolution, leveraging its extensive cloud infrastructure and strategic partnerships to drive innovation across various industries. The company’s AI business is on track to surpass an annual revenue run rate of $10 billion in the next quarter, making it the fastest business in the company’s history to reach this milestone. Key initiatives include the expansion of Azure AI, which offers a broad selection of AI accelerators and models, and the integration of AI into Microsoft 365, GitHub, and Dynamics 365. Additionally, the company is building an end-to-end app platform to help customers create their own AI-driven applications.

On December 13, Mizuho increased its price target for Microsoft Corporation (NASDAQ:MSFT) to $510 from $480 and maintained an Outperform rating on the stock. This adjustment is part of Mizuho’s 2025 outlook for the software industry, where the firm highlighted key trends including digital transformation, generative artificial intelligence, data and analytics, contact center cloud migrations, DevOps, and next-generation security are benefiting software vendors.

To meet the growing demand for cloud services, Microsoft Corporation (NASDAQ:MSFT) is making significant investments in its Azure platform, including the expansion of data centers and the development of next-generation AI infrastructure. The company has announced new cloud and AI infrastructure investments in Brazil, Italy, Mexico, and Sweden, and is committed to building out its fleet to optimize for AI workloads. Microsoft Corporation (NASDAQ:MSFT) is also prioritizing security across all its products and services.

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