5 Best Cybersecurity Stocks Hedge Funds Are Buying

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Tyler Radke at Citigroup holds a Buy rating and a $420 price target on Microsoft Corporation (NASDAQ:MSFT) as of September 22.

At the end of the second quarter, 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT). Their total stake value was $69.8 billion.

Microsoft Corporation (NASDAQ:MSFT) is a big tech giant in the information technology industry. It offers a range of cloud security solutions such as Microsoft Defender, Microsoft Intune, and Microsoft Sentinel, among more.

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.”

See also 12 Most Advanced Countries in Cybersecurity and 12 Best Cybersecurity Stocks to Buy Now.