10 Trending AI Stocks in Focus This Week

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1.   Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Trending AI Stocks in Focus This Week. On August 18, Truist Securities analyst Joel P. Fishbein Jr raised the price target on the stock to $675.00 (from $650.00) while maintaining a Buy rating.

The firm believes that Microsoft holds the potential to sustain robust momentum from cloud and AI secular growth drivers. It has raised its fiscal year 2026 and 2027 estimates for revenue, operating profit and cash flow owing to upside opportunities to both its own and consensus street estimates.

“Bullish on Longevity of Cloud and AI Growth Drivers; We are confident Microsoft can sustain strong momentum associated w/ cloud and AI secular growth drivers, while benefiting from a growth-enhancing halo effect across a multitude of MSFT’s individual infrastructure, data and app businesses. We are raising FY26/FY27 ests for rev, op profit & CF and see opptys for solid upside to ours & street ests. Sustained strong cloud growth at scale & growing AI demand capture can lead to at least low teens doubledigit rev, profit & CF growth over an extended period, while consistently returning cash via divs/repurchases. Raising PT to $675 from $650 on higher ests; supported by 10-yr DCF (w/ LDD rev CAGR & mid 30s FCF margin).”

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.

READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.

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