5 Stocks That Will Benefit From AI

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Our hedge fund data shows 289 funds long Microsoft Corporation (NASDAQ:MSFT) in the first quarter. Their total stake value was $57.9 billion.

A Buy rating and a $433 price target were held on Microsoft Corporation (NASDAQ:MSFT) shares on August 2 by Ivan Feinseth at Tigress Financial.

Microsoft Corporation (NASDAQ:MSFT) is also set to benefit from AI’s popularity because of its efforts to bring Bing AI to its users alongside other AI products and services.

Here’s what L1 Capital said about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a clear and substantial beneficiary of AI – not only through its investment in OpenAI/ChatGPT but through the incorporation of AI into core Microsoft products and services, and increasingly through Azure (Microsoft’s cloud computing business) providing ‘AI-as-a-service’. At this stage we don’t know what the long-term financial benefits of AI will be to Microsoft, but we have confidence that it will be meaningful, that barriers to competition are increasing and that Microsoft is worth more today than it was 12 months ago. That said, Microsoft’s share price has increased 33% (in U.S. dollars) over the past year, and we no longer consider the company to be undervalued in our central base case. We have started to trim our investment in Microsoft, although it remains one of the Fund’s largest positions.”

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