5 Best-Performing Dow Stocks in 2023

3. Microsoft Corporation (NASDAQ:MSFT)

YTD Stock Gain Through November 17: 56.86%

Microsoft Corporation (NASDAQ:MSFT) has been the biggest beneficiary of the AI-led rally, thanks to its huge investments in OpenAI and its proactive approach in the AI race that is rattling giants like Alphabet. Despite huge bull run, many analysts believe Microsoft Corporation (NASDAQ:MSFT) has more room to run. Dan Ives of Wedbush Securities recently increased his price target on Microsoft Corporation (NASDAQ:MSFT) shares to $425 from $400. Ives is specifically bullish on Microsoft Corporation (NASDAQ:MSFT)’s Copilot AI which he believes could be a game changer.

Here is what Jackson Peak Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:

“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”