MicroStrategy Incorporated (MSTR): Capitalizing on AI Growth and Perpetual Preferred Stock Strategy

We recently compiled a list of the 8 Unstoppable Artificial Intelligence (AI) Stocks to Invest In. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against the other AI stocks.

AI continues to accelerate rapidly, moving from emerging technologies to influencing how businesses operate. From developing AI agents to communicating with technology, AI technologies appear to be well-placed to transform the working environments. In 2025, AI is expected to revolutionize technology, significantly impacting businesses and data centers. In the current year, AI-powered Agents might transform industries, sectors, and everyday tasks.

The agents are expected to execute tasks autonomously, refine the workflows, and enable individuals to remain focused on higher-value activities.

AI and its Impact on Interest Rates

Kenneth Rogoff, a Harvard economist, explained the significant impact of AI on the global economy, primarily related to interest rates. He spoke to CNBC-TV18 at WEF in Davos and highlighted how artificial intelligence has been fueling shifts in productivity, labor markets, and inflation, which influence the decisions of central banks. As per the economist, AI continues to act as one of the factors responsible for higher interest rates, reiterating its increasing impact on financial markets and economic policy. With the advancement of AI technologies, apart from reshaping productivity, they also alter the dynamics of economic growth.

The integration of AI across sectors is expected to result in significant shifts in labor markets and broader investment strategies, which contribute to inflationary pressures.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Trends Likely to Shape AI in 2025

As per SAP, advanced AI agents capable of planning, reasoning, using tools, collaborating with humans and other agents, and reflecting on progress till the objective is achieved are on the horizon. Future AI agents, or multi-agent systems (MAS), will be able to collaborate to understand the business user, get all the context, and then structure the problem to interact with domain-specific expert AI agents. Over the five-year horizon, AI agents are expected to simplify significant portions of workflows. This includes aspects that were resistant to automation, like exceptions in customer service and specific programming activities such as coding or debugging software.

While 2024 revolved around introducing AI use cases, SAP believes that 2025 is expected to see the industry’s adoption of AI specifically for businesses. AI is expected to mature to the point where it can handle critical business issues including managing multi-national complexities. Also, AI’s next frontier focuses on seamlessly unifying people, data, and processes with a focus on enhancing business outcomes. The year 2025 might see increased adoption of AI throughout the workforce as people know the benefits of humans plus AI.

Our Methodology

To list the 8 Unstoppable Artificial Intelligence (AI) Stocks to Invest In, we used a screener and sifted through several online rankings. We shortlisted the AI stocks that have gained more than 25% over the past 6 months and in which analysts expect an upside of at least 20%. Finally, the stocks were arranged in ascending order of their average upside potential, as of 24 January. We also mentioned the hedge fund sentiments around each stock, as of Q3 2025.

At Insider Monkey we are obsessed with 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).

Is MicroStrategy Incorporated (MSTR) the Most Promising Growth Stock According to Wall Street Analysts?

A software engineer wearing a headset, collaborating with a remote team on a project.

MicroStrategy Incorporated (NASDAQ:MSTR)

Percentage Return Over 6 Months: ~109%

Average Upside Potential: ~55.5%

Number of Hedge Fund Holders: 25

MicroStrategy Incorporated (NASDAQ:MSTR) offers AI-powered enterprise analytics software and services. Benchmark analysts maintained a “Buy” rating on the company’s shares, offering a price target of $650.00. MicroStrategy Incorporated (NASDAQ:MSTR) continues to focus on its financing strategy by entering the perpetual preferred stock market. It has a goal to raise $2 billion via one or more offerings of perpetual preferred stock. As per Benchmark analysts, the company’s approach to tapping the perpetual preferred market reflects the shareholder value generated via the treasury operations.

Furthermore, MicroStrategy Incorporated (NASDAQ:MSTR) is poised to benefit from the growth of the AI industry because of its focus on business intelligence, analytics, and the integration of AI-powered solutions in its offerings. With companies implementing AI solutions and requiring robust data platforms to store and analyze their datasets, MicroStrategy Incorporated (NASDAQ:MSTR)’s analytics platform and enterprise-grade solutions will address the demand of companies planning to scale their AI initiatives. Furthermore, the integration of AI can help the company improve predictive analytics, allowing companies to make data-driven decisions.

The incorporation of AI into its platform enables MicroStrategy Incorporated (NASDAQ:MSTR) to deliver personalized and automated insights. For example, AI can streamline reporting, spot patterns in data, and provide suggestions. This makes the platform appealing to its customers.

Overall MSTR ranks 2nd on our list of the unstoppable AI stocks to invest in. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.