10 Trending AI Stocks on Wall Street Right Now

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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 May 15, Citi reiterated the stock as “Buy” and raised its price target to $540 per share from $480. Analyst Tyler Radke commended the company’s robust fiscal earnings and revenue beat as well as its strong cost efficiencies and improving performance from its Azure cloud business. He also said that the company’s move to lay off roughly 6,000 employees is a positive move for the stock. These layoffs could “help generate incremental net savings upwards of $1B+ into FY26 to help offset the incremental depreciation/ CapEx cost. We feel this signals prudent operating efficiency. We believe savings will be partially reinvested into R & D, focused on the top priority initiatives across their AI portfolio.”

“We stay constructive on MSFT’s leading position in GenAI, reiterate our Buy rating and raise target price to $540.”

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

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