10 AI Stocks on the Market’s Radar

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 294

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks on the Market’s Radar. On October 31, Truist Securities analyst Terry Tillman reiterated a Buy rating on the stock with a $675.00 price target following the company’s first-quarter fiscal 2026 results.

The firm calls Microsoft one of the best “pick and shovel” plays with financial flexibility. Truist is optimistic about Microsoft’s Azure cloud platform and commercial bookings momentum, quoting accelerating demand trends across various end markets and products.

It believes that Microsoft is “one of the best combined growth and profit AI pick and shovel stories” offering significant balance sheet flexibility. Therefore, it recommends investors buy shares during the current weakness.

“Further Thoughts Post 1QFY26 Report and Callback With the Co; Following 1QFY26 results & callback with company IR, we provide some additional updates on several topics, including accelerating demand, capex, OpenAI partnership and model impact from updated agreement and brief macro commentary. Reiterate our Buy rating and suggesting buying on today’s modest weakness (shares off 3% vs. S&P500 and Nasdaq off 1% and 1.6%, respectively). We are incrementally confident in durable Azure and commercial bookings momentum based on accelerating demand trends across a variety of end markets and products. One of the best combined growth and profit AI pick and shovel stories along with significant balance sheet flexibility, in our opinion.”

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