We recently compiled a list of the 12 Hot Stocks to Buy According to Analysts. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against the other hot stocks.

What’s the US Stock Market Like in 2025?

While the stock market in the United States remained closed on January 20 for Martin Luther King, Jr. Day, the day was happening with Donald Trump’s inauguration on the same date. Previously, the stock market enjoyed a rally following Trump’s win as the election uncertainty dissolved and the investor sentiment experienced a boost, looking forward to a pro-business environment.

As reported by Kiplinger, LPL’s chief technical strategist, Adam Turnquist, pointed towards plenty of reasons to be optimistic for the future, considering that the economy is doing well and that earnings are expected to grow again in the new year by double digits while AI simultaneously drives market enthusiasm. Turnquist referred to the Trump admin potentially having a ‘pro-growth agenda, less regulatory oversight, and potentially lower taxes’. Chief Investment Officer at UBS Global Wealth Management, reiterated the optimism, stating:

“The solid U.S. economy bodes well for corporate profits, the Fed remains on an easing path, and AI investment and monetization should continue to lead growth. We rate U.S. equities and quality bonds as Attractive.”

Although lower Fed rates, slowing inflation, and economic growth are factors building optimism, the uncertainty regarding policies, especially potential tariffs on imports from President-elect Trump, could impact the stock market rally. While the new admin is expected to impose up to 20% on all imports, this could depress the profits of American companies having robust sales abroad and hurt stocks. According to Federal Reserve Bank of New York research, Trump’s tariffs during his first term negatively impacted U.S. equities exposed to countries where tariffs were targeted, for instance, a negative shift was witnessed in equity prices on the days Trump tariffs were announced, while the effect was the most on businesses exposed to China. Thus, the past implies tariffs being implemented on Donald Trump’s second term’s day one could act as a downside catalyst for the S&P 500, Dow, and the Nasdaq.

Our Methodology:

In order to compile a list of the 12 hot stocks to buy according to analysts, we first used a stock screener to create a list of stocks that had gained over 30% over the past 6 months. Moving on, we shortlisted the top 12 stocks from our list which had the highest average upside potential, as of January 17. The 12 hot stocks to buy according to analysts have been arranged in ascending order of their average upside potentials.

At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

MicroStrategy Incorporated (NASDAQ:MSTR)

Average Upside Potential: 48.74%

Gain Over Past 6 Months: 121.82%

MicroStrategy Incorporated (NASDAQ:MSTR) offers industry-leading artificial intelligence-powered enterprise analytics software and services. MSTR claims to be the world’s first Bitcoin Treasury company and focuses on the development of the Bitcoin network through activities in the financial markets, advocacy, and technology innovation. The firm has adopted Bitcoin as its primary treasury reserve asset.

MicroStrategy serves as the largest corporate holder of Bitcoin in the world and has successfully acquired additional Bitcoin in every quarter since Q3 2020, thereby demonstrating growth in Bitcoin strategic treasury reserve. MicroStrategy Incorporated (NASDAQ:MSTR) positions itself as a leader in the digital asset as well as the enterprise analytics sectors, based on favorable factors including its strategic Bitcoin reserve, operational excellence, and a focus on technological innovation.

The company recently announced its 21/21 plan with the goal of raising $42 billion of capital over the next three years. This comprises $21 billion of equity and $21 billion of fixed-income securities. MSTR also revised its long-term target to unlock an annual BTC yield of 6% to 10% between the years 2025 and 2027 where BTC yield serves as a key performance indicator used by the firm to help gauge the performance of its strategy of acquiring bitcoin in a way the firm considers is accretive to its shareholders.

Overall MSTR ranks 5th on our list of the hot stocks to buy according to analysts. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.