5 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More

Page 5 of 5

1.  Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Tigress recently turned more positive on Microsoft, raising its price target on the stock to $680, a 64% upside. Analyst Ivan Feinseth sees the AI-driven cloud flywheel strengthening the company’s high-margin growth story.

Microsoft is one of the 12 AI Stocks Wall Street Is Watching Now.

The firm sees Microsoft’s Q3 FY26 results having strengthened its bullish view, with solid performance across Cloud and AI, robust profitability, and continued heavy investment in areas that could extend its competitive lead.

Tigress further noted how Microsoft’s AI-driven cloud growth and app adoption will likely continue boosting its Business Performance trends, and that heavy capital investment will drive higher returns on capital and economic profit growth.

Copilot was also highlighted as driving the next phase of expansion across Microsoft’s installed base.

MSFT’s unified AI platform and partner ecosystems turn data, automation, and agents into a high-velocity growth engine. MSFT’s strong balance sheet and cash flow continue to drive aggressive funding of AI growth and the ongoing return of cash to shareholders.

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 to grow, 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 the cheapest AI stock.

READ NEXT: 10 Best AI Stocks to Buy Under $25 and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5