We recently published a list of 10 Trending AI Stocks on Wall Street Right Now. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other trending AI stocks on Wall Street right now.
US President Donald Trump wrapped up his tour of the Middle East today, concluding numerous high-profile deals and diplomatic engagements with countries such as Saudi Arabia, Qatar, and the United Arab Emirates (UAE).
On his last stop of the Gulf tour, Trump inked a massive AI data centre project where the two countries will be partnering on an artificial intelligence campus. Trump noted that the United Arab Emirates and the United States had agreed on a path for the Gulf country to buy advanced AI semiconductors from U.S. companies. This marks a significant step forward in Abu Dhabi’s efforts to become a global AI hub.
The AI agreement “includes the UAE committing to invest in, build, or finance U.S. data centres that are at least as large and as powerful as those in the UAE.”
-White House.
READ ALSO: 10 AI Stocks on Wall Street’s Radar and 9 AI Stocks Poised to Gain from Trump’s Middle East AI Push.
Trump also pledged to strengthen U.S. ties to the United Arab Emirates, announcing deals with the Gulf state totalling over $200 billion. The two countries have agreed to deepen cooperation in artificial intelligence.
The US and UAE have agreed to establish a “US-UAE AI Acceleration Partnership” framework. Trump and Sheikh Mohamed also attended the unveiling of the new 5GW AI campus. This would be the largest outside the United States. However, the countries did not specify which AI chips from Nvidia or other companies could be included in the data centres.
“In the UAE, American companies will operate the data centers and offer American-managed cloud services throughout the region. The agreement also contains strong security guarantees to prevent diversion of U.S. technology.”
-Commerce Secretary Howard Lutnik on the broader AI agreement between the US and the UAE.
“I have absolutely no doubt that the relationship will only get bigger and better..Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion.”
-Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, referring to a UAE pledge to invest $1.4 trillion in the U.S. over 10 years.
The UAE is “keen to continue and strengthen this friendship for the benefit of the two countries and peoples..your presence here today, your excellency, the president, confirms that this keenness is mutual.”
-Sheikh Mohamed told Trump
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On May 15, Citi reiterated the stock as “Buy” and raised its price target to $540 per share from $480. Analyst Tyler Radke commended the company’s robust fiscal earnings and revenue beat as well as its strong cost efficiencies and improving performance from its Azure cloud business. He also said that the company’s move to lay off roughly 6,000 employees is a positive move for the stock. These layoffs could “help generate incremental net savings upwards of $1B+ into FY26 to help offset the incremental depreciation/ CapEx cost. We feel this signals prudent operating efficiency. We believe savings will be partially reinvested into R & D, focused on the top priority initiatives across their AI portfolio.”
“We stay constructive on MSFT’s leading position in GenAI, reiterate our Buy rating and raise target price to $540.”
Overall, MSFT ranks 1st on our list of trending AI stocks on Wall Street right now. While we acknowledge the potential of MSFT as an investment, 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
