Kevin O’Leary’s Stock Portfolio: 15 Stock Picks for 2025

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3. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a global technology behemoth best known for its flagship software products, which include the Windows operating system, Microsoft 365 suite, and Edge browser. It provides operating systems, business software, software development tools, video games, gaming hardware, and cloud services.

Following Microsoft president Brad Smith’s blog post on January 6 detailing the company’s vision for advancing artificial intelligence, Citi maintained a Buy rating on MSFT shares with a $497 price target. Although much of the American AI opportunity was high-level, the company’s announcement that it plans to spend approximately $80 billion in capital expenditures for AI data centers in fiscal 2025 was particularly noteworthy. According to Citi, the $80 billion represents nearly all of Microsoft’s fiscal 2025 data center expenditures.

In the first quarter of fiscal 2025, Microsoft Corporation (NASDAQ:MSFT) reported $65.6 billion in revenue, a 16% increase over the same period the previous year. Additionally, the company’s operating income rose to $30.6 billion. Its revenue from server products and cloud services increased by 23%, driven primarily by a 33% increase in Azure and other cloud services.

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