5 Best Cloud Computing Stocks Heading into 2024

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Citigroup’s Tyler Radke reiterated a Buy rating and a $420 price target on Microsoft Corporation (NASDAQ:MSFT) on September 22.

Microsoft Corporation (NASDAQ:MSFT) was seen in the portfolios of 300 hedge funds in the second quarter. Their total stake value was $69.8 billion.

Yet another big tech giant, Microsoft Corporation (NASDAQ:MSFT) is a systems software company. Its Intelligent Cloud segment provides its cloud computing products and services such as Microsoft Azure.

ClearBridge Investments mentioned Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

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See also 10 Cloud Computing Stocks Under $5 and 12 Biggest Cloud Providers by Market Share.

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