10 AI Stocks Investors Should Keep an Eye On

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Investors Should Keep an Eye On. On July 31, TD Cowen analyst Derrick Wood reiterated their bullish stance on the stock, giving a “Buy” rating today. The firm’s optimism follows Microsoft’s earnings report on July 31^st, highlighting strong performance and growth potential.

The tech giant reported impressive revenue growth in the fourth quarter, beating market expectations. Azure has been a major driver behind this revenue growth, having a notable increase in growth driven by both AI and non-AI workloads.

User engagement has also been increasing positively, as evident from the rising adoption of Microsoft’s Copilot. Wood also pointed out Microsoft’s data center capacity expansion and robust capital expenditures, together which have been driving Azure’s continued growth.

Management at Microsoft has also been optimistic about maintaining demand signals, resulting in an increased capital expenditure forecast. According to Woods, the company’s strong positioning in AI monetization and cloud infrastructure will help keep growth on track, reinforcing his confidence in the company.

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