15 AI News Investors Should Not Miss

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is an American multinational technology company engaged in the development and selling of software, services, and hardware. It is one of Wall Street’s favorite AI stocks, known for investing heavily in new AI initiatives, its significant investment in OpenAI, and its expanding cloud computing infrastructure.

Microsoft Corporation (NASDAQ:MSFT) reported its fiscal first-quarter earnings after the bell on October 30, 2024. The company beat top and bottom lines on the back of its cloud business and Office software, with AI leading to gains in its Azure cloud platform. Revenue was $65.6 billion, an increase of 16% and beating analysts’ expectations of $64.57 billion, while net income rose 11% to $24.7 billion. The company’s cloud service sales came at $38.9 billion versus expectations of $38.1 billion. Meanwhile, its Intelligent Cloud segment, including its Azure business, raked in $24.1 billion in the quarter, up 20% year over year. However, guidance for the current quarter projects revenue between $68.1 billion and $69.1 billion, suggesting 10.6% growth but falling short of analyst expectations of $69.83 billion. This is largely due to delays from outside suppliers in delivering data center infrastructure, hampering its ability to meet demand.

“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process. We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”

– Satya Nadella, chairman and chief executive officer of Microsoft.

Overall, MSFT ranks first among the 15 AI News Investors Should Not Miss. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some 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.

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