10 Best AI Data Center Stocks to Buy Now

4. Microsoft Corporation (NASDAQ:MSFT)

Upside Potential: 40.60%

Number of Hedge Fund Holders: 312

According to Reuters, on January 26, 2026, Microsoft Corporation (NASDAQ:MSFT) introduced the second-generation of its in-house artificial intelligence processor, Maia 200, as well as new software tools aimed at narrowing one of Nvidia’s strongest competitive moats among developers. The Maia 200, a step up from the initial Maia microprocessor released in 2023, will go online this week at a data center in Iowa, with a second site scheduled for Arizona. The chip is manufactured by TSMC using 3-nanometer technology that features high-bandwidth memory and a large allocation of SRAM, which can boost performance for AI inference workloads such as chatbots that handle major user traffic.

In addition to the hardware, Microsoft Corporation (NASDAQ:MSFT) will offer a software stack that includes Triton, an open-source tool with major contributions from OpenAI. This step will address the same programming layer that has long been dominated by Nvidia’s CUDA, reflecting Microsoft’s larger strategy to cut reliance on external suppliers as cloud customers scale AI workloads.

On the other hand, in January 2026, Mizuho cut its price target on Microsoft Corporation (NASDAQ:MSFT) from $640 to $620 while retaining an ‘Outperform’ rating. This reduction stems from its analysis of broader coverage of the software sector during this earnings season, with an emphasis on AI-led disruption as a source of concern. Around the same time, Citi lowered its target from $690 to $660, reiterating a Buy rating. The bank believes that although Microsoft Corporation’s (NASDAQ:MSFT) Azure business is expected to remain strong, its other businesses face headwinds related to the PC market’s decline, citing partner and channel checks.

Microsoft Corporation (NASDAQ:MSFT) focuses on developing and supporting software, cloud services, and solutions spanning productivity, intelligent cloud, and personal computing.