We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other top tech stocks to buy according to billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Fisher Asset Management’s Equity Stake: $11.90 Billion
Microsoft Corporation (NASDAQ:MSFT) showcases strategic leadership across cloud computing, artificial intelligence, and next-generation technologies; in its most recent quarterly results, Microsoft reported a 12.27% year-over-year increase in revenue, reaching $69.63 billion, with earnings per share exceeding expectations at $3.23. This growth reflects the company’s robust cloud segment, which accounted for approximately 43% of total revenue in the fiscal year 2024. Microsoft’s dominance in cloud computing and enterprise software remains a cornerstone of its stability, particularly in the face of broader economic uncertainties and geopolitical risks, including global tariffs.
While Microsoft Corporation (NASDAQ:MSFT) has weathered recent market volatility better than its peers, especially among the “Magnificent 7” tech giants, it still faces new challenges. Following the announcement of global tariffs by former President Donald Trump, Microsoft’s stock declined by approximately 5.8%, which was a relatively modest drop compared to the double-digit losses suffered by Meta, Apple, Amazon, Nvidia, and Tesla. Analysts attribute Microsoft’s resilience to its focus on enterprise software and minimal exposure to physical goods, which significantly protects it from the direct impacts of trade tariffs. Its business model, centered on long-term contracts with corporate clients, adds further insulation from short-term economic shocks.
As Microsoft Corporation (NASDAQ:MSFT) marks its 50th anniversary with a high-profile event in Seattle, showcasing its latest AI advancements, the company is positioning itself for continued growth and innovation. While regulatory pressures and scientific disputes pose potential headwinds, the company’s track record of navigating complex environments, combined with its ongoing investment in cutting-edge technologies, suggests strong long-term prospects. For investors, the combination of financial resilience, strategic focus, and technological leadership makes Microsoft a compelling option, even as the broader tech landscape undergoes rapid transformation.
As of Q4 2024, Ken Fisher held more than 28 million shares of Microsoft Corporation (NASDAQ:MSFT) in his portfolio, valued at almost $12 billion and making it one of the top tech stocks to buy according to the billionaire.
Overall, MSFT ranks 3rd on our list of top tech stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of tech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
