10 High Flying AI Stocks This Week

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1.  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 March 10, UBS analyst Karl Kierstead reiterated a “Buy” rating on the stock with a $510.00 price target. The analyst, highlighting Microsoft’s recent performance dip, attributed it to a slowdown in Azure growth without AI. Even though the company has cited go-to-market (GTM) changes planned for mid-2024 as a factor, the lack of clarity around the root cause and resolution timeframe is impacting investor sentiment.

Microsoft sustains strong fundamentals despite these concerns. The analyst and his team also reached out to Microsoft channel partners to assess Azure sales deceleration in the second quarter of December, with feedback suggesting that the GTM adjustments around licensing, channel incentives, and account management may have been responsible. Regardless, the firm believes that Azure’s medium-term prospects remain strong.

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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