10 AI Stocks on Analyst’s Radar Today

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1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

One of the most notable analyst calls on May 27, Tuesday, was for Microsoft Corporation. TD Cowen reiterated the stock as “Buy” and raised its price target on the stock to $540 per share from $490. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

According to analyst Derrick Wood, annual recurring revenues at Azure AI, which are a suite of cloud-based AI services, could boost from $4 billion in 2024 to around $24 billion in 2026. Wood said this leap was “conservative with solid room for upside.”

He further stated that Azure growth will be boosted as AI revenue accelerates development in the Azure model, particularly OpenAI’s contribution.

“As AI revenue is rapidly building in the Azure model, especially OpenAI’s contribution, we think this will start to put stronger upward pressure on total Azure growth. We think a return to Azure upside trends and firmer growth in the mid-30% level should help drive a stronger narrative around Azure and greater fund flows back into MSFT. ”

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: 12 AI Stocks Making Waves on Wall Street Today and 10 AI Stocks on Latest News and Ratings.

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