5 Stocks That Will Always Grow

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Office. Operating system. Cloud computing. Xbox. And now AI. Microsoft Corporation (NASDAQ:MSFT) is literally everywhere and it’s evident how MSFT shares will keep growing in the years to come. Microsoft Corporation (NASDAQ:MSFT) is the second biggest player in the Cloud market, second only to Amazon, and continuously gaining. A 2021 study showed Microsoft Corporation (NASDAQ:MSFT) having a whopping 85% market share of the office productivity market. Microsoft Corporation (NASDAQ:MSFT) is bundling software and has become a one-stop shop for all things work productivity through Teams, Office, Skype, LinkedIn and other tools and platforms. Microsoft Corporation (NASDAQ:MSFT) is also expected to gain final approvals to buy Activision. And in the AI race Microsoft Corporation (NASDAQ:MSFT) is the frontrunner due to its huge investments in OpenAI. Microsoft Corporation (NASDAQ:MSFT) Bing search product is also expected to gain market share in the future.

Mairs & Power Growth Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“Regarding stock selection in the first half, Nvidia (NVDA) was a massive outperformer, up 189.54%. Amazon and Microsoft Corporation (NASDAQ:MSFT) were also positive contributors, up 55.19% and 42.66%, respectively. All three stocks benefited from a renewed interest in growth stocks by investors in the first half of the year.

Microsoft (MSFT) was another positive contributor to performance in the first half. The company continued to take share in cloud computing. Its strong relationships with customers, as well as knowledge of their businesses, differentiates its offering, which is also helped by leading investments in AI. We expect the company will continue to integrate AI tools into most of its productivity suite of software in the not-too-distant future. This should help with employee productivity and the labor constraints of most of its customers.”

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