5 Tech Stocks with Biggest Upside

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Microsoft Corporation (NASDAQ:MSFT) is easily the most commonly talked about tech stock with upside potential. Most of the credible analysts believe Microsoft Corporation (NASDAQ:MSFT) still has a lot of room to run due to its AI-related ventures. Microsoft Corporation (NASDAQ:MSFT) is expected to gain market share in search, its enterprise footprint is increasing and its Cloud computing segment is also showing growth. Microsoft Corporation (NASDAQ:MSFT)’s huge investments in AI will bear fruit in the months and years to come.

Hedge funds also agree with the overall market sentiment on Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among the 910 hedge funds tracked by Insider Monkey.

Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 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). During the period, shares contributed to performance as the company reported fiscal third quarter results above expectations driven by outperformance in More Personal Computing and Office Commercial. Additionally. management provided in-line Azure guidance, easing investor concerns of a potential slowdown in Azure growth estimates. Moreover, management provided encouraging commentary around Al, noting strong long-term opportunities as they integrate various Al offerings into their products and services.”

You can also take a peek at 15 Most Profitable Cutting Edge Technologies That Will Make You Rich and Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index.