5 Best Machine Learning Stocks To Invest In

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corporation (NASDAQ:MSFT) is an industry leader in artificial intelligence software. The company offers Microsoft Azure, a cloud-computing platform that is heavily used by machine learning developers and data scientists across the world. Microsoft Corporation (NASDAQ:MSFT) has the pricing power and brand recognition to maintain Azure’s dominant position in the machine learning industry and as the industry booms, Microsoft Corporation (NASDAQ:MSFT) is expected to be among the key beneficiaries and is, therefore, one of the best machine learning stocks to buy now.

Wall Street is bullish on Microsoft Corporation (NASDAQ:MSFT) and the stock has a consensus Strong Buy rating. On September 29, Raymond James analyst Andrew Marok resumed coverage of Microsoft Corporation (NASDAQ:MSFT) with a buy-side Outperform rating and a $300 price target. Over the past three months, Microsoft Corporation (NASDAQ:MSFT) has received 27 Buy ratings and 3 Hold ratings and has an average price target of $325, which implies an upside of 39% from current levels.

At the end of Q2 2022, 258 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) and held stakes worth $56 billion in the company. Of those, Fisher Asset Management was the most prominent investor in the company and held stakes worth $7.36 billion. The investment covers 5.21% of Ken Fisher’s 13F portfolio.

Here is what Baron Funds had to say about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2022 investor letter:

“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.

As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”

You can also take a look at 13 Best Cybersecurity Stocks To Buy and 12 Best AI Stocks To Buy.

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