2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Bourgeon Capital’s Equity Stake: $23.12 Million
Microsoft Corporation (NASDAQ:MSFT), based in Redmond, Washington, is a global technology leader known for its advancements in personal computing, cloud services, artificial intelligence, and gaming. Founded in 1975 by Bill Gates and Paul Allen, the company gained prominence with MS-DOS in the 1980s and later revolutionized the personal computing industry with its Windows operating system. Going public in 1986, Microsoft experienced rapid financial growth and expanded its reach beyond software, venturing into gaming with the Xbox console in 2001 and enhancing communication with its acquisition of Skype in 2011. In recent years, Microsoft Corporation (NASDAQ:MSFT) has focused heavily on artificial intelligence and cloud computing, strengthening its partnership with OpenAI in 2023 and launching AI-powered tools such as Microsoft 365 Copilot, Windows Copilot, and Microsoft Copilot to enhance user experiences. By October 2024, the introduction of Copilot Labs and Copilot Vision reaffirmed its commitment to AI-driven innovation, ensuring Microsoft remains at the forefront of the evolving technology landscape.
Microsoft Corporation (NASDAQ:MSFT) has announced a $700 million investment in Poland to expand its existing data center, enhance AI capabilities, and strengthen cybersecurity. The announcement was made in Warsaw by Microsoft Vice Chair and President Brad Smith alongside Polish Prime Minister Donald Tusk. This investment builds on Microsoft’s initial $1 billion commitment in 2020, which led to the establishment of Poland’s first regional data center, operational since 2023. The second phase of investment, running until mid-2026, will further develop AI technology and cybersecurity initiatives, including deeper collaboration with Poland’s defense forces. Given Poland’s strategic role in regional security, especially following Russia’s invasion of Ukraine, Microsoft aims to ensure the country remains at the forefront of technological advancements.
In the fourth quarter of 2024, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $69.63 billion, reflecting a 12% increase compared to the previous year. The company’s operating income rose to $31.65 billion, marking a 17% year-over-year growth. Additionally, Microsoft exceeded expectations with earnings per share (EPS) of $3.23, surpassing analyst estimates of $3.12 by $0.11. With consistent financial growth, strong profitability, and continued expansion in AI and cloud computing, Microsoft remains among the top stocks to buy for those seeking long-term stability and innovation-driven growth.
Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, Microsoft delivered better-than-expected fiscal first-quarter revenues, beating analyst estimates across all three segments. In the Intelligent Cloud business, Azure revenue grew 34% year over-year, slightly above consensus, with AI Services contributing 12% to Azure’s growth, up from 11% in the previous quarter, as demand for AI continues to outpace capacity. However, shares declined after management signaled a potential deceleration in Azure growth for the next quarter and highlighted a negative earnings impact from OpenAI-related losses. Additionally, concerns over significantly increased AI-related capital expenditures (CapEx) raised questions about short-term profitability despite the long-term growth potential. While these near-term challenges led to shares detracting from performance for the quarter, we remain confident in Microsoft’s ability to maintain its leadership in AI.”
