Top 10 AI News Everyone is Talking About

2. Microsoft Corp (NASDAQ:MSFT)

Number of Hedge Fund Investors: 279

James Cakmak, Clockwise Capital CIO, said in a latest program on CNBC that DeepSeek is “incrementally positive” for Microsoft (NASDAQ:MSFT) and he’s bullish on the stock in the long term:

“We’re there in both those names (MSFT and AAPL), but we are underweight relative to the index by a sizable margin, by less than half. You know, we are downward-biased on both of them over the very short term, but over the longer term, I think this deep-seek news is actually incrementally positive for both names. So, on any pullbacks, we take advantage.”

RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q3 2024 investor letter:

“Microsoft Corporation (NASDAQ:MSFT): MSFT was a top detractor in the third quarter following a fiscal fourth quarter earnings report that featured inline operating metrics but mixed guidance. Positively, the company reported strong revenue (+15%) and earnings growth (+10%), powered by Azure (+30%), and operating margins of 43%. Guidance however calls for lower than expected fiscal first quarter Azure revenue as infrastructure constraints limit growth, and higher capital expenditures throughout the company’s fiscal 2025 to alleviate these constraints. The company expects growth to reaccelerate in the back half of fiscal 2025 as more AI capacity comes online.

Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $200 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to return to shareholders and use for acquisitions.”