5 Best Blue Chip Stocks To Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) is the best blue chip stock to buy according to hedge funds. Insider Monkey’s database of 943 hedge funds updated for Q1 filings shows that 289 hedge funds had stakes in Microsoft Corporation (NASDAQ:MSFT), up from 259 hedge funds in the previous quarter. Hedge funds upped their bets on Microsoft Corporation (NASDAQ:MSFT) as it makes waves almost on a daily basis with its AI advances.

Bernstein analyst Mark Moerdler recently said that Microsoft Corporation (NASDAQ:MSFT) has a clear advantage in the AI space due to the sheer size of its customer base, which comes from Office, Windows, and other products. Moerdler praised Microsoft Corporation (NASDAQ:MSFT) Copilot feature which he believes Microsoft is integrating in all of its key products. He has an Outperform rating on Microsoft Corporation (NASDAQ:MSFT).

Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 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). While the company reported decent fiscal second quarter results, their investment in OpenAl’s ChatGPT captured the attention of investors. contributing to positive performance. Throughout the quarter. Microsoft surprised investors with continual rollouts of new Al capabilities across the company’s portfolio (e.g., Bing, GitHub. Teams, Office 365). Furthermore, the company announced Microsoft 365 Copilot, which leverages GPT-4, a large language model, combined with the Microsoft Graph of data to provide Al virtual assistance. We believe Microsoft’s investment in OpenAl provides a first-mover advantage in the Al transformer model space. Despite challenges in the early days of Al-powered applications, the pace of Al innovation is faster than any other enterprise technology previously observed, in our view.”

You can also take a peek at 20 Fastest-Growing Cities in the Southeast and 25 Best US Cities for People With Allergies.