4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Millennium Management’s Equity Stake: $1.09 Billion
In February 2025, Microsoft Corporation (NASDAQ:MSFT) announced a major breakthrough in quantum computing with the development of a topological qubit, a milestone that could significantly impact artificial intelligence, medicine, and cryptography. While some experts remain skeptical, this innovation intensifies global competition in quantum research. Meanwhile, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella has emphasized the transformative role of AI in reshaping knowledge work. In a recent interview, he likened AI’s impact to past technological advancements, such as the introduction of spreadsheets and email, which revolutionized workplace processes. Nadella predicts that AI agents will take over repetitive tasks like email triage, allowing humans to focus on higher-level cognitive work. However, he envisions a future where AI still requires oversight, with knowledge workers evolving into supervisors managing intelligent agents rather than performing routine tasks themselves.
Microsoft Corporation (NASDAQ:MSFT)’s push into AI-driven automation and quantum computing positions it at the forefront of technological innovation, potentially giving it a competitive edge over rivals in enterprise solutions and cloud computing. As AI continues to integrate into workplace processes, reducing inefficiencies and creating new productivity models, the stock could see long-term growth driven by increased demand for its AI-powered tools and infrastructure.
The company’s financial performance supported this outlook, as it reported $69.63 billion in revenue for Q4 2024, surpassing market expectations of $68.81 billion and marking a 12.27% year-over-year increase. Additionally, earnings per share reached $3.23, exceeding analyst projections by 3.5%.
As of Q4 2024, Millennium Management held over 2.5 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at just over $1.09 billion. Institutional investment in the company continued to grow, with 317 hedge funds tracked by Insider Monkey holding nearly $21 billion in shares collectively, as of Q4 2024, up from 279 funds in the previous quarter. This increasing interest highlights strong investor confidence in Microsoft’s long-term growth and dominance in the technology sector.
Mairs & Power Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.
A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”
