11 Best Safe Stocks to Buy According to Hedge Funds

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge funds holdings: 317

Forward dividend: $3.32

Microsoft Corporation (NASDAQ:MSFT) is a software company recognized for its Windows operating systems and Office productivity suite. Headquartered in Washington, the giant operates through three segments: productivity and business processes, intelligence cloud, and more personal computing. The company considers itself on a mission to empower individuals and organizations to achieve more.

Analysts believe that Microsoft Corporation (NASDAQ:MSFT) is a compelling long-haul investment. Although surrounded by similar mega-cap tech titans, MSFT provides a software-centric, yet diverse business model offered by none other.

In today’s era, a business that is strategically evolving through consistent innovations leads the stock market, and that’s what Microsoft Corporation (NASDAQ:MSFT) is. Stealing the spotlight among the company’s initiatives is its Stargate venture, a $500 billion data center project led by SoftBank Group Corp and OpenAI. The venture is weighing up expansion possibilities, particularly in the U.K., to set up AI infrastructure. As leading countries like France and Germany acknowledge the necessity of an AI ecosystem, Stargate is considering expanding internationally.

It’s the company’s favorable sales mix that makes it a safe haven for investors, especially under Trump’s tariff regime. Having said that, the minimal resilience of hardware, in contrast to its competitors, makes Microsoft Corporation (NASDAQ:MSFT) less vulnerable to reciprocal tariffs. The segments contributing the most to the revenue are productivity and business processes (PBP) and intelligent cloud (IC). Thus, in this tariff-heavy environment, the margins for companies relying significantly on global raw materials ought to slide, something MSFT is considerably protected against.

Additionally, the management is focused on its promise to scale and adjust the allocation of capex spending driven by both short- and long-term demand signals. This can be reinforced by the company’s recent cancellation of various data center leases, signaling a transition to short-lived assets that translate to revenue growth. Combined with Azure’s reacceleration, underscoring incremental cloud computing capacity coming online in the times ahead, Microsoft Corporation (NASDAQ:MSFT) has emerged as a valuable opportunity.