Jim Cramer’s 5 Best AI Stocks

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Jim Cramer regularly talks about Microsoft Corporation (NASDAQ:MSFT) and how AI could boost the stock in the long term. Cramer said in a program that we should put Microsoft Corporation (NASDAQ:MSFT) on front, right and center due to AI since the company has got a “real AI product.” Cramer praised Microsoft Corporation (NASDAQ:MSFT)’s copilot application announced in September. Microsoft Copilot is an AI virtual assistant.

Microsoft Corporation (NASDAQ:MSFT) is also heavily invested in OpenAI, the creator of ChatGPT. Analysts believe Microsoft Corporation (NASDAQ:MSFT) could start enjoying fruits of its huge AI investments soon. OpenAI is also reportedly close to a stock sale deal that would value OpenAI at $90 billion.

Microsoft Corporation (NASDAQ:MSFT) is the most popular stock among the 910 elite hedge funds tracked by Insider Monkey. As of the end of the second quarter of 2023, 300 hedge funds reported owning stakes in Microsoft Corporation (NASDAQ:MSFT).

ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

You can also take a peek at 15 Most Innovative Companies in Canada and 15 Best Casino Stocks To Buy Heading Into 2024.

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