10 Must-Watch AI Stocks on Wall Street

1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 294

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Must-Watch AI Stocks on Wall Street. On November 20, Evercore ISI reiterated an Outperform rating on the stock with a price target of $640.

The rating affirmation follows Microsoft’s Ignite conference and investor meetings, underscoring Microsoft’s long-term lead in AI. The firm believes that the recent pullback is a buying opportunity into CY26.

“Earlier today, we hosted two investor meetings, the first with Microsoft President of Business & Industry Copilot Charles Lamanna, and the second with AvePoint Chief Financial Officer Jim Caci and Chief Strategy & Marketing Officer Mario Carvajal.”

The firm’s discussions with Microsoft President of Business & Industry Copilot Charles Lamanna has unveiled Microsoft’s expanding scope across agents, business applications, the Power Platform, and Agent 365 offering.

Lamanna noted how Agent 365 will serve as the core ‘registry of registries,’ giving Microsoft a structural advantage because businesses will need strong tools to manage agent growth, security, and interoperability.

Even though companies are still in early stages of data readiness, agents are already delivering positive results in areas such as software development, customer success, and more. Lamanna noted how agents, WorkIQ, and Copilot, will be significantly reshaping business applications.

He also highlighted that business applications will be fundamentally reshaped by “agents, WorkIQ, and Copilot, with traditional app UI value declining as enterprises shift toward agent-driven experiences.”

Meanwhile, firm conversations with AVPT management highlighted the growing importance of agent governance. AVPT holds a clear opportunity in this area, helping companies manage aspects such as compliance, visibility, and even identity based monetization.

“In our conversation with AVPT mgmt, we discussed the growing importance of agent governance as enterprises face rapid agent proliferation, rising AI-generated data, and cross-vendor complexity. We also covered how these trends create a clear opportunity for AVPT to lead in compliance, visibility, and identity-based monetization as hyperscalers remain focused on productivity and frontier models rather than governance.

Overall, the firm remains bullish on Microsoft’s position in artificial intelligence and sees the recent pullback as “an attractive buying opportunity heading into CY26.”

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.

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