5 Best American Stocks To Buy In 2024

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) ranks 1st on our list of the best American stocks to buy in 2024. On February 29, Goldman Sachs reaffirmed a Buy rating for Microsoft Corporation (NASDAQ:MSFT), praising its strategic investments in generative artificial intelligence. Microsoft is seen as a leader in the Gen-AI tech stack, poised for significant revenue growth without compromising profitability. The potential for Azure and Gen-AI services to become a $200 billion business, along with positive adoption rates of Copilot, contributes to Microsoft being viewed as a compelling investment opportunity in the tech industry.

According to Insider Monkey’s fourth quarter database, 302 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 306 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 38.2 million shares worth $14.3 billion. 

Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices. Gaming, and Search). During the quarter, the company reported strong fiscal first quarter results, where revenues and earnings beat analyst estimates, driven in large part to growing Al demand. Regarding Intelligent Cloud segment, management noted Azure optimizations were similar to the previous quarter, but new Al and traditional workloads are helping drive greater consumption growth, which resulted in their first reacceleration since March 2022. We believe the strong Azure performance suggests diminishing cost optimization headwinds and growing strength in Al service consumption.”

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