Top 10 Stocks to Buy According to Marshall Wace LLP

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders as of Q4: 317

Marshall Wace LLP’s Equity Stake: $2.50 Billion 

Microsoft Corporation (NASDAQ:MSFT) reported strong Q4 financial results, with revenue rising 12.27% year-over-year to $69.63 billion and earnings per share surpassing expectations at $3.23. The tech giant continues to demonstrate resilience and profitability, driven by its dominance in cloud computing and artificial intelligence. However, Microsoft now faces increased regulatory scrutiny over its market influence, particularly regarding its investment in OpenAI and its cloud licensing policies. U.S. regulators are assessing whether these practices foster innovation or stifle competition, a probe that could reshape the competitive landscape and open doors for rivals. While antitrust cases typically unfold over time, they introduce uncertainty that may impact Microsoft’s growth trajectory and legal costs.

Beyond financial performance and regulatory concerns, Microsoft Corporation (NASDAQ:MSFT) recently announced a major breakthrough in quantum computing with the development of a topological qubit, a technology with potential applications in AI, medicine, and cryptography. This advancement reinforces the company’s leadership in next-generation computing and long-term growth prospects. However, physicist Henry Legg of the University of St Andrews has challenged Microsoft’s claim, arguing that its topological gap protocol (TGP) test for detecting Majorana quasiparticles is flawed. Without peer-reviewed verification, skepticism remains about the validity of Microsoft’s breakthrough. Despite this controversy, the company maintains confidence in its progress, emphasizing that its quantum research extends beyond publicly available findings.

Microsoft’s continued innovation, strong financials, and leadership in cloud and AI keep it positioned as a top stock to buy, even amid regulatory and scientific challenges. The company’s historical ability to navigate market shifts, coupled with its investments in cutting-edge technologies, suggests that any near-term volatility could create long-term opportunities. As regulatory investigations evolve, Microsoft Corporation (NASDAQ:MSFT) may face pressure to modify its business practices, but its commitment to AI, cloud computing, and quantum research underscores its resilience and potential for sustained growth.

As of Q4 2024, Marshall Wace LLP held nearly 6 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at almost $2.5 billion. Hedge fund interest in the company also increased, with 317 funds tracked by Insider Monkey holding positions worth nearly $91.24 billion by the end of Q4 2024, up from 279 funds in Q3.