Mag7 and Beyond: Top 10 AI News Updates and Ratings

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On March 31, Brent Thill from Jefferies maintained a “Buy” rating on the stock and lowered the price target from $550 to $500.00. The firm lowered price targets across its US software coverage due to recent multiple compression and signs of softening macro factors. The analyst told investors in a research note that it believes “we may have another ‘mullet’ year in software” with a first half chop followed by a second half flow.

Microsoft is one of Jefferies’ favorite large caps. The firm views multiple drivers for the stock to reboot. These include the likelihood of growth in Azure and M365 Commercial Cloud to stabilize/ inflect as AI revenue becomes more significant. Microsoft is gaining ground in Azure against competitors, and Microsoft 365 is also gaining steady adoption, which is likely to become “more material” in Fiscal 2026. Thill is also optimistic that with growing AI revenues and moderating capital expenditure growth, its cash flow estimates are bound to improve.