AI News You Should Not Have Missed

6. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. It is hard to find established technology companies that offer a reliable path to AI growth. Microsoft, however, is an exception. The firm recently released results for the fourth fiscal quarter of 2024, topping market expectations on revenue by 15% year-on-year growth and operating income that came close to $28 billion. For those looking at ROI on AI, the numbers for Azure painted a healthy pattern, with AI workloads contributing to 30% year-on-year growth in the segment. The services and GitHub Copilot showed strong performance as well. Although the long-term outlook remains rosy, AI capex is likely to weigh on investor sentiment in the near term.

Microsoft Corporation (NASDAQ:MSFT) is one of the favorite AI stocks on Wall Street. DA Davidson recently maintained a Buy rating on the shares with a price target of $475, noting that the commentary from management suggested that demand for AI services remained strong as Azure continues to gain market share, and Azure demand levels were likely to remain similar throughout the upcoming fiscal year.