10 Must-Watch AI Stocks on Wall Street

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1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Goldman Sachs reiterated the stock as “Buy” and said that it is bullish heading into earnings on Wednesday.

“Microsoft is well-positioned to capitalize on this shift with a more capital efficient and higher margin recurring revenue model, just as it did during the on-prem to cloud transition.”

In other news, Bernstein SocGen Group analyst Mark Moerdler reiterated an Outperform rating on the stock with a $540.00 price target.

“After a great Q3 what does Microsoft do for an encore? Microsoft is scheduled to report 4FQ25 after the market closes on July 30th. Q3 was a surprisingly strong quarter (Link) with solid results and a big Azure beat. While investors sentiment improved questions continue as to Azure growth, CAPEX, the OpenAI partnership and overall fundamentals. We have written this preview to help investors prepare for the earnings as Q4 should continue to validate Azure growth and slowing CAPEX and potential stronger FX tailwind.

The focus will not only be on the quarter but also Q1 and FY26 guide. FX could be more of a tailwind than expected as seen negatively in SAP’s 2Q results. At a high-level we believe the street will focus, beyond the reported numbers on: 1) The AI revenue run rate exiting Q4 and color on likely on the run rate going forward; 2) Azure and CAPEX; 3) additional commentary on the OpenAI partnership and 4)high-level guidance for FY26.”

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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 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.

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