5 Stocks Jumping On The Generative AI Wagon

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation’s (NASDAQ:MSFT) foray into the generative AI area started with a $3 billion investment in OpenAI, the company behind ChatGPT. The company has added the integration of the Bing chatbot in Windows 11 to its generative AI contributions as well.

In total, 289 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) in the first quarter. Their total stake value was $57.9 billion.

On June 15, Gregg Moskowitz at Mizuho maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) shares.

L1 Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its first-quarter 2023 investor letter:

“We commented in the December 2022 Quarterly Report “sentiment towards many high-quality technology and ecommerce related businesses like Amazon and Alphabet is negative. Capital flows and an over-emphasis on short-term challenges is driving share prices well below fair value, providing compelling investment opportunities for longer term investors”. In that report we outlined in detail why Amazon’s share price has been oversold and offered compelling value.

During the March 2023 quarter the share price of many large capitalisation technology companies increased significantly. The Fund has investments in Alphabet, Amazon and Microsoft Corporation (NASDAQ:MSFT) and their share prices increased 17%, 23% and 20% (in U.S. dollars), respectively. While we continue to see value in these privileged, high-quality businesses, share prices are no longer trading at materially oversold levels and we have selectively started to trim some of the Fund’s exposure. Microsoft was trimmed due to share price performance and position size.”

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See also How to Play The AI Boom And NASDAQ Rally and 11 Best AI ETFs to Invest In 2023.

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