Coatue’s 35 Most Important AI Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. In the fiscal quarter ending December 2024, the company reported total revenue of $69.6 billion, a 12% increase year-over-year, and a net income of $24.1 billion, up 10% from the previous year. A substantial contributor to this growth is Microsoft’s AI segment, which has achieved an annual revenue run rate of $13 billion, reflecting a 175% year-over-year increase. This surge is largely driven by the integration of AI services into Microsoft’s Azure cloud platform, where AI services contributed 13 percentage points to Azure’s 31% revenue growth in the same quarter. To support and expand its AI capabilities, Microsoft has significantly increased its capital expenditures, reaching $22.6 billion in the December quarter, primarily allocated to AI and data center infrastructure. The company plans to invest a total of $80 billion in AI infrastructure during the current fiscal year.