5 Best Beaten-Down Technology Stocks to Buy Now

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1. Microsoft Corporation (NASDAQ:MSFT)

Year-to-Date Performance: -21.13%

Number of Hedge Fund Holders: 282

Microsoft Corporation (NASDAQ:MSFT) is one of the best beaten-down technology stocks to buy now. On July 1, Business Insider reported that Microsoft Corporation (NASDAQ:MSFT) is poised to cut its workforce by under 2.5%. The cut, which will affect thousands of employees, is part of an effort to control costs.

The cuts will mostly affect personnel in sales and consulting. In addition, the company is targeting cuts at the Xbox gaming division. Microsoft has set a precedent of cutting jobs at the start of a new fiscal year. Last year, it eliminated 6,000 roles in May and an additional 9,000 roles, representing 4% of its total workforce, in July.

The wave of job cuts underscores the tech giant’s bid to lower operating costs as it ramps up spending on artificial intelligence. Additionally, the job cuts have come amid heightened concerns that AI will replace a significant chunk of its software services. The concerns have led the stock to slump about 19% over the past month.

On Monday, the company confirmed that it would cut 4,800 jobs, or ​about 2.1% of its global workforce.

Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that develops, licenses, and supports a wide range of computer software, devices, and cloud-based solutions. Its core operations include software-as-a-service, cloud computing, and gaming & Hardware.

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 Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds and Top 10 Stocks to Buy According to Ariel Investments.

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