Hedge Funds are Buying and Selling These 10 AI Stocks

1. Microsoft Corp (NASDAQ:MSFT)

Total Number of Hedge Fund Investors as of the End of Q2: 279

Total Number of Hedge Fund Investors as of the End of Q1: 293

Billionaire investor Philippe Laffont’s Coatue Management’s stake in Microsoft Corp (NASDAQ:MSFT) inched up by 0.6% to about $1.7 billion during the second quarter. Rajiv Jain’s GQG Partners decreased its stake by 22% while Michael Platt and William Reeves’ BlueCrest Capital Mgmt. increased their hold on Microsoft Corp (NASDAQ:MSFT) by over 1,000%. Billionaire Dalio’s Bridgewater increased its take in MSFT to 1.09 million shares from 580K.

Polen Focus Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:

“The top absolute contributors were Alphabet, Microsoft Corporation (NASDAQ:MSFT), and Amazon. Microsoft was another top absolute contributor in the quarter, speaking to a growing appreciation for all the ways the company has an opportunity to monetize GenAI, be it in its Office suite or Azure cloud business. In the latter case, it contributed 7% to Azure’s revenue growth in the most recent quarter. We believe Microsoft remains a highly advantaged business with many secular tailwinds driving durable growth for the foreseeable future, even at its immense scale.”

While we acknowledge the potential of Microsoft Corp (NASDAQ:MSFT), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.

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