Citigroup’s Top 5 AI Stocks to Buy

Page 5 of 5

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Investors in Q1 2023: 289

Microsoft Corporation (NASDAQ:MSFT) kickstarted the generative AI frenzy by announcing a $10 billion investment in OpenAI, the parent company behind ChatGPT Chatbot. With the investment, the company has integrated the chatbot into its Bing search engine as it looks to leverage the power of machine learning to enhance web searching and browsing.

 There has been talk that if Microsoft gets it right with artificial intelligence, it could, for once, be a worthy competitor to google on the internet search market. By enabling a new kind of search and enhancing experience, Microsoft hopes to strengthen its edge on search.

 In addition, Microsoft has teamed up with AMD to create powerful chips that will power artificial intelligence innovations and tools. The two are to work together on a processor for AI workloads to address the growing need in the market.

In March 2023, Microsoft Corporation’s (NASDAQ: MSFT) shares were purchased by 289 out of the 943 hedge funds analyzed by Insider Monkey for their investments.

Michael Larson’s  Bill & Melinda Gates Foundation Trust is Microsoft Corporation (NASDAQ:MSFT)’s biggest shareholder through a $11.32 billion stake. Microsoft has a consensus rating of ‘Strong Buy.’ The average price target for Microsoft is $350.29, with the highest analyst price target at $420 and the lowest forecast at $232. The average price target suggests a 5.36% increase from the current price of $332.47.

Here is what ClearBridge Investments had to say about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“2023 has so far marked a return to mega cap leadership, with Apple, Microsoft Corporation (NASDAQ:MSFT), Alphabet, Amazon.com and Nvidia accounting for approximately two thirds of the benchmark return. At 41.3%, the five largest stocks in the market represent the highest concentration in the 26-year history of the Russell 1000 Growth Index. Among these names, we maintain overweights to Nvidia (+246 bps) and Amazon (+117 bps), underweights to Microsoft (-353 bps) and Apple.

The Strategy’s IT holdings also drove performance in the second quarter, led by the continued rerating of graphics chipmaker Nvidia as a key beneficiary of the generative AI boom. AI-connected holdings Microsoft and Amazon also delivered strong gains.”

Follow Microsoft Corp (NASDAQ:MSFT)

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on George Soros’ Top 10 Stock Picks and Billionaire Ken Fisher’s Top 10 Stock Picks.

Page 5 of 5