5 Best AI Stocks for 2024

Page 5 of 5

1. Microsoft Corp (NASDAQ:MSFT)

Number of Hedge Fund Investors: 306

Microsoft Corp (NASDAQ:MSFT) is a ubiquitous name in the Wall Street these days, popular among both money managers and analysts. It is the most popular stock among the 910 hedge funds tracked by Insider Monkey.

Bank of America analysts led by Alkesh Shah recently added Microsoft Corp (NASDAQ:MSFT) to their top AI picks for 2024 list. While the analyst said now is not the right time to be a “blind bull” on tech stocks given the massive rally already experienced by these companies, he sees a significant upside for some companies in the space. The analyst is bullish on Microsoft Corp (NASDAQ:MSFT) as he sees “incremental” growth in Azure and Office due to AI.

In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT):

Microsoft Corporation (NASDAQ:MSFT) is the largest holding in our portfolio. Given its partnership with OpenAI and leading position in the cloud, Microsoft is well-positioned to profit from the boom in AI. However, due to Microsoft’s tremendous scale and diversification, the company is not dependent upon AI for its success. Microsoft’s diverse portfolio of software and cloud offerings ensures the company will thrive even if the next hot thing, like AI, fizzles out. In this way, Microsoft is emblematic of our broader investing approach. We seek to benefit from powerful trends, but we do so with an eye toward managing risk and limiting downside in case the future turns out to be less rosy than hoped for.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 11 Most Promising AI Stocks According to Hedge Funds and the 10 AI Stocks Billionaires Are Crazy About.

Page 5 of 5