5 Best Artificial Intelligence Stocks to Buy for 2021

3. Microsoft Corp. (NASDAQ: MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corp. (NASDAQ: MSFT) is a Washington-based multinational company that develops and sells computer software, electronics, computers and other related services. The company has a separate artificial intelligence unit called Microsoft AI that helps users, organizations, and governments across the world with machine learning, data analytics, robotics, and internet of things products. The firm has also integrated artificial intelligence into existing products like the Office software, Cortona, and several others. 

The company has a market cap of close to $2 trillion and posted more than $143 billion in revenue in June 2020. California-based wealth management firm Wedbush earlier this month said that a recent Microsoft deal with the US army showed that the firm was gaining ground on rival Amazon on government projects. The firm maintained an Outperform rating and set a price target of $300 on Microsoft stocks. Microsoft Corporation thus ranks second on our list of top 10 best artificial intelligence stocks for 2021. 

The company is also getting the attention of the smart money, as 258 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 234 funds a quarter earlier. Based on our calculations, MSFT ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.