5 Stocks from Companies Generating High Cash Flow

3. Microsoft Corporation (NASDAQ:MSFT)

Free Cash Flow Trailing Twelve Months: $59.5 billion

Number of Hedge Fund Holders: 300

Microsoft Corporation (NASDAQ:MSFT) is among the leaders in the AI race following its partnership with OpenAI, the creator of Chat GPT – an artificial intelligence powered chatbot. Microsoft Corporation (NASDAQ:MSFT) is using its AI capabilities to improve its existing products and services including Bing Search, Cloud, as well as its Office Suite.

In its Q2 2023 investor letter, Third Point Management, a New York-based investment advisor, made the following comments about Microsoft Corporation (NASDAQ:MSFT):

“Microsoft’s introduction of its AI-assisted Office Copilot software, which could increase its revenues by as much as $25 billion or more on software sales alone. While it is impossible to quantify precisely, we are confident that from a macroeconomic standpoint, AI will have enormous impact on labor productivity, business profit margins, and individual well-being, and act as a counter to the inflationary pressures that have emerged over the last few years. We expect enterprise applications to dramatically accelerate by the early part of 2024.”

As of Q2 2023, Microsoft Corporation (NASDAQ:MSFT) ranks highest on our list of 12 stock from companies generating high cash flow in terms of hedge fund sentiment as it was the most sought-after stock among the 910 hedge funds tracked by Insider Monkey. 300 of these hedge funds held shares in the software giant, valued at $69.8 billion.