35 AI Superstars According to Goldman Sachs

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. Morgan Stanley analyst Keith Weiss recently penned an investor note on the firm, maintaining an Overweight rating on the stock with a price target of $508. In the note, the analyst highlighted that investor patience appeared to be wearing thin with the tech giant regarding generative AI revenue, and questions were being asked around the return on investment in GPU spending and the environmental impacts of rising data center demand. Weiss underlined that as a perceived leader in the GenAI opportunity, investors looked to Microsoft for indications on the proper time horizons for seeing revenues start to flow.

Weiss also discussed the return of investment on capex spending by Microsoft Corporation (NASDAQ:MSFT), which has risen 75% year-over-year to $55.7 billion, including capital leases. In fiscal 2025, that is expected to rise another 41% to reach $78.4 billion. Per the analyst, the spending question needed to be split into two, with one focused on the gross margin potential of GenAI related solutions, and the other on future model training costs.