We recently compiled a list of the 14 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against the other AI stocks that are on Wall Street’s Radar.
Latest reports from tech news platform TechCrunch indicate that MatX, a chip-design startup focused on supporting large language models, has raised $80 million in a funding round. This follows the $25 million seed round it held less than a year ago. The latest round, led by Spark Capital, values the company at a pre-money valuation in the mid-$200 million range and a post-money valuation in the low $300 million range, per TechCrunch. MatX was co-founded two years ago by former Google TPU team members Mike Gunter and Reiner Pope, who aim to address the global shortage of AI-specific chips.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The company’s chips are optimized for AI workloads of 7 billion to 20 billion parameters or more, providing high performance at lower costs. MatX highlights its advanced interconnect technology, which enhances scalability for large clusters. The co-founders claim their processors are designed to outperform NVIDIA GPUs, with a goal of achieving tenfold efficiency in training LLMs and delivering results. The AI hardware sector has seen growing investor interest amid increasing demand for chips tailored for generative AI.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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 275% since May 2014, beating its benchmark by 150 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: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. d-Matrix, an AI startup backed by Microsoft, recently announced the shipment of its first AI chip. Per reports, published by The American Bazaar, the chip aims to revolutionize how artificial intelligence handles user interactions. The startup has raised more than $160 million so far, with the venture capital arm of Microsoft also taking part in this funding. The startup specializes in AI inference hardware and focuses on optimizing the process of managing user requests on trained AI systems, such as chatbots and video generators.
Overall MSFT ranks 2nd on our list of the stocks on Wall Street’s radar. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
