12 AI Stocks Making Waves 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 12 AI Stocks Making Waves on Wall Street. On July 9, Oppenheimer upgraded the stock to “Outperform” from Perform with a $600 price target.

“We upgrade MSFT to Outperform from Perform and establish a $600 PT.”

The firm said that its AI opportunity and sustained cloud momentum are too attractive to ignore.

“In our view, investors’ attention on the ramp of Microsoft’s AI revenue stream will only increase as Azure’s growth remains strong, offering not only valuation support (akin to AWS [Amazon Web Services] underpinning Amazon’s valuation), but also upside potential as this revenue stream continues scaling fast and investors embrace Microsoft as one of the long-term AI winners in software.”

-Analysts led by Brian Schwartz.

The analysts also highlighted that Microsoft’s sustaining growth in its AI business or reacceleration in Azure’s growth in fiscal 2026 is not fully reflected in the stock.

They also said that “Microsoft is one of only a few vendors in the software industry capable of delivering a Rule of 60 business profile and at unprecedented scale, which we think lends good support to premium multiples.”

Owing to scaling Azure business and accelerating AI adoption across industries, the firm expects Microsoft to be “one of the long-term AI winners in software.”

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 Getting Wall Street’s Attention and 10 AI Stocks Investors Are Watching This Week

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