20 Trending AI Stocks on Latest Analyst Ratings and News

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6. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. Latest reports indicate that OpenAI, the generative artificial intelligence startup backed by Microsoft,  has crossed the 1 million paid users barrier in the ChatGPT for business section. OpenAI launched ChatGPT in late 2022 to kickstart the AI boom. The tech giant has invested more than $10 billion in the AI startup already, and is potentially considering another large investment, along with Apple and NVIDIA, as the valuation of the startup touches close to $100 billion. OpenAI is considering higher-priced subscriptions to ChatGPT, perhaps $2,000 per month, as it launches new models like Strawberry and Orion.

DA Davidson analyst Gil Luria recently downgraded Microsoft Corporation (NASDAQ:MSFT) stock to Neutral from Buy with an unchanged price target of $475. In a research note, the analyst noted that competition had largely caught up with Microsoft on the AI front, which reduced the justification for the current premium valuation. The note further claimed that Microsoft’s lead had now diminished in both the cloud business and code generation business, which would make it hard for shares to continue to outperform.

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