5 Tech Stocks to Buy According to Billionaire Philippe Laffont

3. Microsoft Corporation (NASDAQ:MSFT)

Coatue Management’s Stake: $909.88

Coatue Management’s doubled its stake in the tech giant Microsoft Corporation (NASDAQ:MSFT) in the first quarter of 2023 to 3.156 million shares worth $909.88 million, making up 6.04% of the hedge fund’s portfolio.

On May 24, Mizuho analyst Gregg Moskowitz reaffirmed a Buy rating on Microsoft Corporation (NASDAQ:MSFT) shares and raised his price target to $340 from $325. The analyst raised the company’s price target after attending the first day of the Microsoft Build conference and said that the event was “AI-heavy.”

In the first quarter of 2023, 289 hedge funds held Microsoft Corporation (NASDAQ:MSFT)’s stock compared to 259 in the previous quarter. Bill & Melinda Gates Foundation Trust was the most prominent hedge fund holder in the first quarter with over 39 million shares worth $11.32 billion.

Fred Alger Management made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services. Azure, and Enterprise Services), and More Personal Computing (Windows Devices, Gaming, and Search). While the company reported decent fiscal second quarter results, their investment in OpenAl’s ChatGPT captured the attention of investors. contributing to positive performance. Throughout the quarter. Microsoft surprised investors with continual rollouts of new Al capabilities across the company’s portfolio (e.g., Bing, GitHub. Teams, Office 365). Furthermore, the company announced Microsoft 365 Copilot, which leverages GPT-4, a large language model, combined with the Microsoft Graph of data to provide Al virtual assistance. We believe Microsoft’s investment in OpenAl provides a first-mover advantage in the Al transformer model space. Despite challenges in the early days of Al-powered applications, the pace of Al innovation is faster than any other enterprise technology previously observed, in our view.”