5 Best Growth Stocks to Buy for the Next 5 Years

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

EPS Next 5 Year Ratio: 11.90%

Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 12 Best Growth Stocks to Buy for the Next 5 Years given 259 hedge funds owned shares of the software giant at the end of Q4.

Although Microsoft Corporation (NASDAQ:MSFT)’s EPS Next 5 Year Ratio of 11.90% might overstate its actual growth potential in the next half decade given its smaller EPS base considering its P/E ratio of 31.58, the company is a growth stock given its AI potential. While AI still mistakes now, it is improving and the increases in AI processing could benefit Microsoft Corporation (NASDAQ:MSFT)’s cloud business.

Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella said in January 2023, “And as customers select their cloud providers and invest in new workloads, we are well-positioned to capture that opportunity as a leader in AI. We have the most powerful AI supercomputing infrastructure in the cloud. It’s being used by customers and partners like OpenAI to train state-of-the-art models and services, including ChatGPT.”

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