8 Most Promising Metaverse Stocks to Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Price Target Upside: 51.19%

Microsoft Corporation (NASDAQ:MSFT) is one of the most promising stocks.

TheFly reported on February 4 that Stifel downgraded MSFT from Buy to Hold and lowered its price target to $392 from $540. The analyst cited ongoing Azure supply challenges, combined with strong performance from Google Cloud and Anthropic, suggesting that near-term growth in Azure is unlikely. Additionally, fiscal year 2027 is expected to see lower in-period revenue recognition compared with FY26, which benefited from multiple product cycles. Stifel’s projections for 2027 EPS stand at $18.70, significantly below consensus estimates, indicating that the stock may face limited upside until cloud growth improves or operational headwinds ease.

On February 18, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) is on track to invest $50 billion by the end of the decade to expand artificial intelligence infrastructure and access throughout the Global South. It focuses on emerging and lower-income countries in the southern hemisphere. The aim of this effort is to bring artificial intelligence (AI) technology to regions that have historically had limited access to state-of-the-art computer resources. MSFT intends to promote increased engagement in AI research and applications by concentrating on these markets, which will help close the global access gap to technology.

Microsoft Corporation (NASDAQ:MSFT) is a global technology leader advancing the metaverse through cloud computing (Azure), mixed-reality tools, AI, and enterprise collaboration platforms. Its ecosystem supports immersive gaming, digital twins, and industrial metaverse applications.

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 this cheapest AI stock.

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Disclosure: None. This article is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.