5 Best S&P 500 Stocks to Buy Right Now

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.

On April 1, Benchmark initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a ‘Buy’ rating and a price target of $450, reflecting an upside of more than 20% from the current levels.

Benchmark highlighted Microsoft Corporation (NASDAQ:MSFT)’s position as a leading AI orchestration platform across enterprise and consumer markets, thanks to its robust portfolio of software, collaboration tools, and cloud services. That said, the stock has declined by over 30% since hitting its all-time high in October 2025, and the analyst views this as a long-term buying opportunity for investors. The firm believes that Microsoft’s AI-related CapEx concerns are shortsighted, given the strong demand visibility, contracted hardware capacity, and the strategic positioning the company enjoys amid the AI supercycle.

Microsoft Corporation (NASDAQ:MSFT) reported a CapEx of $34.9 billion in Q1 2026, followed by $37.5 billion in the second quarter. If investment continues at this pace, the annual CapEx for FY 2026 will come out at around $140-$150 billion.