10 Best Stocks to Buy According to Billionaire Chris Rokos

2. Microsoft Corporation (NASDAQ:MSFT)

Rokos Capital Management’s Stake as of Q4 2024: $290.6 million

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is a major technology company known for its main software products, which include the Windows operating system, the Microsoft 365 suite, and the Edge browser.

On April 17, KeyBanc analysts cut Microsoft Corporation (NASDAQ:MSFT) shares from Overweight to Sector Weight, citing uncertainty regarding the timing of artificial intelligence demand and monetization. Microsoft has made huge investments in AI and its cloud computing service Azure, which have become key components of the company’s development plan. The decision comes as analysts forecast considerable capital expenditures with limited flexibility in the coming year, which might have an impact on margins in the short term.

Microsoft Corporation (NASDAQ:MSFT) announced a 12.27% year-over-year revenue gain in its recent earnings report, hitting $69.63 billion, with earnings per share of $3.23 climbing above market forecasts. This performance was mostly driven by the strength of its cloud segment, which accounted for about 43% of total revenue in fiscal year 2024.

Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, shares detracted from performance as Azure revenue growth missed analyst estimates, marking the third consecutive quarter of modest disappointment in this segment. However, AI-related sales growth exceeded expectations, accounting for 13% of Azure’s quarterly growth. Management also maintained their fiscal third quarter earnings guidance while highlighting improved operating profitability and lower tax rates. Despite the disappointing quarter, we remain confident in Microsoft’s ability to sustain its leadership position in AI.”