10 AI Stocks on Market Radar

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1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks on Market Radar. On January 20, TD Cowen lowered its price target on the stock to $625 from $655 and maintained a Buy rating. The price target cut comes ahead of Microsoft’s Q2 results, with the firm flagging capacity constraints as a limiting factor for growth acceleration.

The firm previewed its results, stating that checks suggest demand for GPU and CPU infrastructure is stable or strengthening. It anticipates about 2 points of upside to their 37% cc Azure estimates.

TD Cowen also suspects that a lack of growth acceleration, primarily stemming from capacity constraints, will keep shares range-bound in the near-term. However, it remains constructive for the company’s position to serve AI workloads.

We suspect lack of growth acceleration due to capacity constraints will keep shares range-bound NT, but we remain constructive on MSFT’s position to serve AI workloads & see a potential for acceleration in 2HCY26. Reiterate Buy. PT to $625.

Microsoft reports its earnings on January 28. TD Cowen believes Microsoft is poised for AI growth with possible reacceleration in the second half of 2026.

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 Must-Watch AI Stocks on Wall Street and 11 AI Stocks Analysts Are Watching Closely

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