10 AI Stocks Investors are Watching

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Investors are Watching. Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $530 per share from $482. The firm has updated its capex-implied AI revenue analysis and its OpenAI model, which elaborates on the contribution to Azure.

According to the firm, the yield on Microsoft’s investments in Generative AI is becoming “increasingly apparent” despite investors continuing to debate it. It is confident that there is upside to Azure forecasts and that Microsoft’s “prime position for the upcoming GenAI innovation cycle, matched with solid execution,n is driving an acceleration in the Azure business.”

“We update our capex-implied AI revenue analysis and our OpenAI model detailing the contribution to Azure. Core conclusion remains the same: conservatism in our Azure forecasts. With increased confidence in upside to Azure forecasts — our price target moves to $530 and conviction in OW remains.”

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.