1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
With a profit margin of 39.34% and net income of $101.83 billion (FY25), Microsoft Corporation (NASDAQ:MSFT) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 38.20% upside for the stock.
That standing is well-supported by results, and Microsoft Corporation (NASDAQ:MSFT) is actively broadening its revenue base beyond cloud and AI.
In April, Microsoft reported fiscal third-quarter revenue of $82.9 billion, with Azure growing 40% year over year. Reported EPS came in at $4.27, topping the $4.06 consensus. The company’s AI business crossed a $37 billion annualized revenue run rate, up 123% year-over-year, and management noted that nearly 90% of Fortune 500 companies now run active AI agents built with Copilot Studio.
Meanwhile, on June 10, 2026, Reuters reported that the Microsoft-owned platform launched BrandWorks, a newly assembled team of marketing experts aimed at delivering higher-performing ad campaigns for business advertisers. LinkedIn expects BrandWorks to generate an annualized run rate of $100 million next fiscal year, according to a source familiar with the matter.
The team, led by VP Alex Josephson, has grown roughly 60% in recent months through hires from TikTok, Meta, and X. Its Top Voices 360 program, which connects advertisers with creators for sponsored content, drove more than $20 million in revenue from May 2025 to May 2026, with clients including SAP, IBM, and ServiceNow. Microsoft Corporation (NASDAQ:MSFT)’s LinkedIn also said it expects revenue from BrandLink, its video ad program, to nearly triple in the current fiscal 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.
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