18 Trending AI Stocks on Latest Analyst Ratings and News

6. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. Investors have expressed concerns about the high capex of the tech giant on AI infrastructure over the past few months. Multiple factors have contributed to this. For example, the company recently failed to meet expectations on cloud growth and gross margins. With revenues from AI failing to fill the gap, there was lots of chatter about the near-term consequences of the high capex. In addition, as chipmakers enter into annual cycles of updates – these chips form the bulk of capex spending on AI – there is a fear that the chip architecture developed by tech giants might become obsolete as newer chip versions are launched, thereby rendering their investments useless within a few years.

However, Wall Street remains as bullish on Microsoft Corporation (NASDAQ:MSFT) as ever. Evercore has an Outperform rating on the shares with a price target of $500. In a recent investor note, analyst Kirk Materne said that Microsoft remains well positioned to deliver durable top-and-bottom-line growth and investors should use any pronounced weakness as a buying opportunity for the long-term.