5 Best Software Infrastructure Stocks to Buy

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) is the second biggest player in the Cloud market. Thousands of companies use Microsoft Cloud solutions for their daily business needs. Microsoft Azure infrastructure services help businesses scale their IT solutions and adopt Cloud seamlessly. As of the end of the first quarter, Microsoft Corporation (NASDAQ:MSFT)’s market share in the Cloud markets stands at 23%, much higher than Alphabet Inc. (NASDAQ:GOOG). Most importantly, Microsoft Azure grew faster than Amazon Web Services in the first quarter.

More and more hedge funds keep adding Microsoft Corporation (NASDAQ:MSFT) in their portfolios. Insider Monkey’s database shows that 289 hedge funds had stakes in Microsoft Corporation (NASDAQ:MSFT) at the end of March, up from 259 funds in the fourth quarter of 2022.

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.”

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