15 AI Stocks Every Investor Should Be Watching

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On February 19, the company announced its first quantum computing chip, Majorana 1. Quantum computing can solve complex problems within seconds, potentially leading to breakthroughs in medicine, chemistry, and many other fields.

The challenge of quantum computers, however, is that the fundamental building block called a qubit, is incredibly fast, extremely difficult to control, and also prone to errors. Microsoft said that its Majorana 1 chip is less prone to those errors than rivals. Powered by the new Topological Core architecture, Microsoft expects the computing chip to realize quantum computers that can solve meaningful, industrial-scale problems in a matter of years.

According to the company, the power of quantum computing, combined with AI tools, would allow scientists and engineers to design new materials for various industries with unprecedented accuracy.

“Any company that makes anything could just design it perfectly the first time out. It would just give you the answer. The quantum computer teaches the AI the language of nature so the AI can just tell you the recipe for what you want to make.”

-Matthias Troyer, Microsoft Technical Fellow