Weekend Roundup: Top 10 AI Stocks on Latest News and Ratings

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On February 14, UBS analyst Karl Keirstead maintained a “Buy” rating on the stock and set a price target of $510.00.

“We hosted a group of investors at Microsoft’s campus, meeting with Azure and M365 execs as well as IR. The investor focus was on the root cause and time to fix the non-AI Azure deceleration and to a lesser extent the capex trajectory. Microsoft refrained from being too specific about the GTM changes and appeared to downplay the changes as mere “tweaks”. In our view, the lack of visibility into the cause of the Azure set-back and the length of the fix may weigh on the stock near-term, but the secular growth tailwinds remain in place and we remain Buy-rated.”

Previously, the firm has highlighted Microsoft’s partnership with OpenAI, and how the company’s overall AI-related decisions have the potential to shape its financial trajectory and market standing in the coming years. The emphasis the firm is currently giving to Azure’s non-AI deceleration echoes the importance of cloud services in Microsoft’s overall business strategy.

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 timeframe. 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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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