5 Best Major Stocks to Buy According to Wall Street Analysts

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1. Microsoft Corp (NASDAQ:MSFT)

Microsoft is one of the 10 best major stocks to buy according to Wall Street analysts. On April 13, Mark Moerdler of Bernstein maintained his Outperform rating on Microsoft Corp. (NASDAQ:MSFT) and set a price target of $641. The analyst directly addressed a key point about the stock, which he believes is often misunderstood: AI spending.

According to the analyst, questions regarding Microsoft’s growth are not valid. The main concern among investors is not whether the firm is able to capture growth, but when exactly it is likely to do so. The short-term margin compression resulting from higher investments would not be a problem if the timeline were clearer.

Mark Moerdler pointed out that most of Microsoft’s AI spending is in the high-margin segments. Moreover, the pressure on Azure margins is also temporary, as early-stage AI workloads typically carry low margins. These should pick up soon, with a higher momentum likely in the second half of the year.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

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: 8 Best American Stocks to Buy and Hold in 2026 and 12 Best Mid Cap AI Stocks to Buy According to Hedge Funds.

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