10 AI Stocks Investors Are Watching Closely

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1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Investors Are Watching Closely. On September 4, BMO reiterated the stock as “Outperform,” stating that it is sticking with the tech giant.

“Our stock view remains that MSFT is one of our favorite names driven by 1) broad portfolio that includes cloud leadership, 2) largely consistent and effective execution, and 3) reasonable valuation, though admittedly not inexpensive.”

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $630 implies a 24.02% upside; however, the Street-high target of $700 implies an upside of 37.8%.

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

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 have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Analysts Are Backing Right Now and 10 AI Stocks to Watch Out For in 2025

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