12 AI Stocks on Analysts’ Radar

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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 21, Citi analysts reaffirmed a “Buy” rating on the stock and a price target of $540.00. The rating update follows Microsoft’s Build conference, where Microsoft made more than 50 announcements. The announcements highlight the company’s steady push towards creating an “open agentic web.” The firm acknowledged that all of these announcements currently don’t appear to be immediate drivers of revenue growth.

The firm has also acknowledged Microsoft’s commitment toward developing an open, collaborative ecosystem, predominantly in artificial intelligence (AI). The introduction of Agentic DevSecOps has been a standout development for the company, reflecting the company’s investment in AI integration. Moreover, the firm’s analysis reveals how over 230,000 organizations have utilized Copilot Studio to develop AI agents, with the user base doubling over the past year. The company stands out as a leader in the enterprise general AI (GenAI) space, showcasing the ability to monetize advancements effectively.

“We maintain our Buy rating as we see Microsoft maintains a leadership position in Enterprise GenAI monetization and momentum existing the Mar-Q should continue to drive upside to street numbers.”

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 AI Stocks Making Waves on Wall Street Today and 15 AI Stocks Surging on News and Analyst Ratings.

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