12 AI News and Ratings Investors Are Watching Right Now

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2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) integrates AI into its cloud offerings, productivity software, and business solutions to boost automation, security, and user experience. The company’s AI efforts include advanced cloud services, AI-powered business applications, and cutting-edge language processing and computing capabilities.

Loop Capital analyst Yun Kim raised Microsoft’s price target from $500 to $550, maintaining a Buy rating. The firm attributes the adjustment to updated estimates for select software companies and noted that consensus projections for Microsoft are understated due to substantial capital expenditures tied to its GenAI initiatives. Despite these investments, Loop believes Microsoft’s strong position in the market justifies a significantly higher valuation premium compared to its large-cap software peers, reflecting confidence in its long-term growth potential.

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