10 AI Stocks Shaping Wall Street’s Next Big Rally

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 294

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Shaping Wall Street’s Next Big Rally. On October 6, Wells Fargo reiterated the stock as “Overweight” and raised its price target on the stock to $675 per share from $650.

According to the firm, investors will be mainly watching out for how much Azure’s cloud business can grow given the incremental capacity in the first quarter.

Since the last two prints already present a high bar, the company faces tough comparisons. Nevertheless, the company is well-positioned to benefit.

“Key debate into FQ1 will be degree of Azure upside given incremental capacity in 1Q, though the last 2 prints (300/400bps Azure beats) present a high bar. With recent demand signals intensifying, expect MSFT broadly set to benefit. Raise PT to $675.”

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