Goldman Sachs AI Stocks: Top 5 Stock Picks

1. Microsoft Corporation (NASDAQ:MSFT)

Goldman Sachs’ Q2 Stake Value: $13.2 billion

Number of Hedge Fund Holders: 300

Alex Haissl at Redburn Partners holds a Buy rating and a $440 price target on Microsoft Corporation (NASDAQ:MSFT) as of August 11.

Microsoft Corporation (NASDAQ:MSFT) had 300 hedge funds long its stock in the second quarter. Their total stake value was $69.8 billion.

Another big tech name on our list, Microsoft Corporation (NASDAQ:MSFT) is a company that has been heavily investing in OpenAI, the creator of ChatGPT, alongside developing its own Bing AI chatbot, among more.

Mairs & Power said the following about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“Regarding stock selection in the first half, Nvidia (NVDA) was a massive outperformer, up 189.54%. Amazon and Microsoft Corporation (NASDAQ:MSFT) were also positive contributors, up 55.19% and 42.66%, respectively. All three stocks benefited from a renewed interest in growth stocks by investors in the first half of the year.

Microsoft (MSFT) was another positive contributor to performance in the first half. The company continued to take share in cloud computing. Its strong relationships with customers, as well as knowledge of their businesses, differentiates its offering, which is also helped by leading investments in AI. We expect the company will continue to integrate AI tools into most of its productivity suite of software in the not-too-distant future. This should help with employee productivity and the labor constraints of most of its customers.”

See also 20 Best-Funded AI Startups in 2023 and 11 Most Advanced AI Companies.