10 Best Fundamentally Strong Stocks to Buy

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1. Microsoft Corporation (NASDAQ:MSFT)

5-Year Revenue Growth: ~14.8%

5-Year Diluted EPS Growth: ~17.8%

Number of Hedge Fund Holders: 294

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Fundamentally Strong Stocks to Buy. On November 12, the Wall Street Journal reported that Microsoft Corporation (NASDAQ:MSFT) has been expanding its data center build-out with an AI super factory. This is the set of two-story structures in Atlanta, focused towards connecting seamlessly with infrastructure in other areas to harness the immense computing power.

Microsoft Corporation (NASDAQ:MSFT) has been doubling its total data-center footprint over the upcoming 2 years. WSJ also reported that the tech giant spent over $34 billion on capex during its Q1, and it plans to increase total infrastructure investments over the upcoming fiscal year.

Furthermore, Microsoft Corporation (NASDAQ:MSFT) happens to be among several tech companies focused on investing a combined $400 billion into AI efforts this year, amidst increased demand for AI computing and companies highlighting the requirement for more capacity.

At its Q1 2026 earnings call, Microsoft Corporation (NASDAQ:MSFT) highlighted that, with accelerating demand, along with growth in RPO balance, it is increasing its spend on GPUs and CPUs. As a result, it expects that its total spend will increase sequentially, and it now anticipates the FY 2026 growth rate to be higher than FY 2025.

While we acknowledge the potential of MSFT to grow, 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: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.

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