30 Best Stocks To Invest In According to Billionaires

2. Microsoft Corporation (NASDAQ:MSFT)

No. of Billionaire Investors: 39

Total Value of Billionaire Holdings: $53.36 Billion

Microsoft Corporation (NASDAQ:MSFT) is a technology company and the largest software producer in the world by revenue. The company’s early and aggressive investments in AI place it well in transformative technology. Moreover, Microsoft’s AI integration throughout its product portfolio, from Azure cloud services to productivity tools such as M365 Copilot, results in creating several avenues for revenue growth.

In Q2 FY2025, Microsoft Corporation (NASDAQ:MSFT) posted $69.6 billion in revenue, up by 12% from a year ago. The company’s gross margin increased 13% and 12% in constant currency while operating income increased 17% and 16% in constant currency. As the company continued to improve its earnings, the EPS also gained 10% growth, reaching $3.23 per share. These strong results were attributed to the strong demand for MSFT’s cloud and AI offerings.

Mairs & Power, an investment advisor, released the Q4 2024 investor letter. Here is what the fund said:

“Unlike the dot-com companies that operated at the turn of the century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investment process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.

A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”