Top 10 Trending Stocks as AI Hype Fades

3. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Funds Investors: 158

Jim Lebenthal, Chief Equity Strategist at Cerity Partners, said in a latest program on CNBC that he’s buying Microsoft Corporation (NASDAQ:MSFT) and said the stock is currently trading for a “really good” price.

“I do think—and I think we’re all saying this—that this is a buying opportunity. It doesn’t matter whether it’s right or wrong—excuse me, institutional selling—doesn’t matter whether it’s right or wrong to a fundamental person like we all are. It’s a great opportunity. Now, I will look at the chart of Microsoft and say it looks pretty terrible, but it looked pretty terrible for a long period of time. Folks, I’m not saying that this is the bottom. What I’m saying is Microsoft is a great company—NVIDIA is a great company—you’re getting these stocks now at really good prices. If you just look back from a year from now, you’re going to probably feel these were very good buys.”

Mairs & Power Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:

“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.

A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”