10 AI Stocks You Shouldn’t Overlook Right Now

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On April 15, Bank of America reiterated the stock as “Buy” and lowered its price target on the stock to $480 per share from $510.

“There have been rumors that Microsoft is pulling back on capex. While Microsoft is likely shifting capex within geographies, the company remains building capacity for the long term.”

A day prior, UBS also lowered the firm’s price target on the stock to $480 from $510 and kept a “Buy” rating on the shares. The firm’s price target revision also came after Microsoft’s formal acknowledgement that it is slowing or pausing some data center projects. The firm’s evaluation reveals that the company’s adjustments are most likely not AI demand-related, and that the pausing activity isn’t a materially negative AI demand signal.