Top 10 AI Stocks on Investors’ Radar

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1. 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 March 20, Tigress Financial analyst Ivan Feinseth reiterated their “Buy” rating on the stock and raised the price target to $595 from $550. Feinseth is optimistic about Microsoft’s strategic position in the market, with its ongoing development and integration of AI technologies anticipated to boost significant growth across its business lines.

Furthermore, the company’s leadership in AI is highlighted through the incorporation of ChatGPT into its products, positioning it at the forefront of digital transformation. Microsoft is also financially strong, as evident from its strong balance sheet and cash flow. This allows it to support its growth initiatives and strategic acquisitions, which further boosts shareholder returns via dividends and share repurchases. The analyst asserted that their raised target represents a potential return with dividends of over 25% from current levels.

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 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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