We recently published a list of 12 AI News and Ratings Investors Are Watching Right Now. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other AI news and ratings investors are watching right now.
Redefining Innovation with Next-Generation AI
At CNBC’s ‘Money Movers’, Jack Hidary, CEO of Sandbox AQ, emphasized the shift towards B2B-focused AI, positioning it as the next major evolution in artificial intelligence. While language models like those from OpenAI have excelled in consumer applications, Hidary highlighted the untapped potential of quantitative AI (QAI) in driving innovation across industries like pharmaceuticals, automotive, and energy. QAI uses fundamental equations to generate new data, which enables advancements in drug development, materials for energy storage, and aerospace.
Hidary pointed out that large quantitative models are set to transform product development by creating significant economic value, unlike large language models, which primarily reduce operational costs. He predicts that 2025 and beyond will see a growing focus on AI’s role in addressing critical challenges in B2B sectors, from building better batteries to accelerating medical breakthroughs. This evolution underscores a future where AI goes beyond text-based applications, becoming a cornerstone for innovation across various industries.
READ ALSO: 10 AI News Dominating Wall Street Today and 11 Important AI News and Ratings for Investors.
The Role of Generative AI in Transforming Sales Strategies
As per a Mckinsey report, An unconstrained future: How generative AI could reshape B2B sales, GenAI is transforming B2B sales by improving efficiency, fostering growth, and reshaping sales operations. While the core role of sellers including building trust, creating value, and minimizing friction remains unchanged, generative AI enables productivity gains through automation, personalized insights, and strategic guidance.
Companies adopting these tools report improved customer experiences, faster sales processes, and new growth opportunities. Looking ahead, AI integration is expected to redefine sales models, emphasizing customer outcomes, long-term success, and collaboration between human and AI-driven agents. To adapt, businesses must embrace agile strategies, invest in AI-driven capabilities, and align their sales approaches with evolving customer expectations.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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).
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Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) integrates AI into its cloud offerings, productivity software, and business solutions to boost automation, security, and user experience. The company’s AI efforts include advanced cloud services, AI-powered business applications, and cutting-edge language processing and computing capabilities.
Loop Capital analyst Yun Kim raised Microsoft’s price target from $500 to $550, maintaining a Buy rating. The firm attributes the adjustment to updated estimates for select software companies and noted that consensus projections for Microsoft are understated due to substantial capital expenditures tied to its GenAI initiatives. Despite these investments, Loop believes Microsoft’s strong position in the market justifies a significantly higher valuation premium compared to its large-cap software peers, reflecting confidence in its long-term growth potential.
Overall, MSFT ranks 2nd on our list of AI news and ratings investors are watching right now. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.