12 AI Stocks Making Waves on Wall Street

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is one of the 12 AI Stocks Making Waves on Wall Street. On December 22, Wedbush reiterated the stock as “Outperform,” with a $625 price target. The firm believes that the stock is a “core winner,” likely to surprise Wall Street with the strength of its AI-driven growth.

“Microsoft remains a core winner in the IVES AI 30 list.”

Analyst Dan Ives said that investors have been underestimating the Azure growth story, remaining skeptical of Microsoft’s AI-led expansion as it heads into 2026.

“The Street is underestimating the Azure growth story in our view and AI driven shift about to happen in Redmond heading into 2026 making Microsoft one of our favorite large cap tech names to own over the coming year. Investors remain skeptical of Microsoft’s AI driven growth profile, which is setting the stage for [Satya] Nadella & Co. to prove the doubters wrong, as this hyperscaler cloud stalwart is in the sweet spot of enterprise strategic AI deployments.”

-Wedbush analyst Dan Ives wrote in a note to clients.

In contrast, the firm’s channel checks have been “incrementally strong” pertaining to the deployment of Azure and Copilot among Microsoft customers. This may push the company’s revenue in fiscal 2026 by another $25B.

“Our thesis remains that the cloud and AI monetization is going to comprise a bigger and bigger piece of Redmond going forward and will ultimately spur growth and margins over the coming years.”

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:12 Hot AI Stocks on Wall Street’s Radar and 12 AI Stocks in the Spotlight for Investors.

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