Tariff Hits and More: 10 AI Stocks in the Spotlight

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 April 1, RBC Capital Markets analyst Rishi Jaluria added the stock to his “Top Picks” list. Jaluria has an Outperform rating and a $500 price target on the stock. According to him, the market is underestimating Microsoft’s generative AI innovations and that the recent stock underperformance is a good buying opportunity. Azure is also anticipated to grow based on AI trends and capacity expansions. From fiscal 2025 to 2026, the company is expected to maintain a CAGR of 10-15%. It is also likely that Microsoft will tap into new markets such as hyper-automation.