5 Best AI Stocks for 2022

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 250

Software giant Microsoft Corporation (NASDAQ:MSFT) is one of the best AI stocks for 2022, as the Washington-based company continues to grow its AI and cloud computing platform, Azure.

Morgan Stanley analyst Keith Weiss is bullish on Microsoft Corporation (NASDAQ:MSFT), trusting that the company’s strong database data platform solutions will be a major source of upside in 2022. On December 14, Weiss gave an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) and set a price target of $364 for the stock.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading stakeholder in Microsoft Corporation (NASDAQ:MSFT) holding 25 million shares worth more than $7.2 billion. 

At the end of the third quarter of 2021, 250 hedge funds in the database of Insider Monkey held stakes worth $65.8 billion in Microsoft Corporation (NASDAQ:MSFT), up from 238 in the preceding quarter worth $62.4 billion.

Here is what Baron Opportunity Fund has to say about Microsoft Corporation in its Q3 2021 investor letter:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”

You can also take a peek at the Top 10 Stock Picks of Mario Gabelli and 10 Stocks On Investors’ Radar After Posting Their Financial Results.

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