16. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Holdings in Q4 2025: 312
Software giant Microsoft Corp (NASDAQ:MSFT)’s shares have struggled lately, as while they are up by 18% over the past year, they are down by 9.9% year-to-date. However, over the past month, the stock is up by 11% and since the 14th, it is up by 8.5%. On April 13th, Bernstein discussed Microsoft Corp (NASDAQ:MSFT) as it kept an Outperform rating and a $641 share price target. At the heart of the financial firm’s coverage was AI spending, as it outlined that the key question surrounding Microsoft Corp (NASDAQ:MSFT) wasn’t the idea of growth but its timeline. Bernstein added that the sentiment for the firm would be clearer if a growth timeline was able to assuage investor worries about the impact on its margins from AI spending. Cramer has also discussed Microsoft Corp (NASDAQ:MSFT) several times over the past couple of months as he has expressed worries and concerns about the Copilot platform. However, the CNBC TV host has now changed his mind about the firm:
“This is the complete revenge of the software companies. . .whether it be Oracle and of course, Microsoft. And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off.
“Let’s cut to the chase, David. This is about Microsoft and the soul, the soul of tech. This Microsoft Fights Back But Not The Way We Thought, the velvet glove. The velvet glove, not with a hammer. Going around, talking to people, saying kind things. Asking your opinion. Wanting to know what you think. . .I liked it. I bought it. . .
“[when told he wasn’t a believer not too long ago] I was not alone, in part because Copilot is not I think the greatest thing since. . .I think a company that recognizes it has to catch up, it has a balance sheet that is, not, you know they don’t put out the top people [inaudible]. . .But what I am saying is that, an arrogant Microsoft would have been a real turnoff. But they are going around talking to people, very nice fellow. And I felt you know what, they’re listening. I want them to listen, I want them to understand that they have to break out of where they are.”z
Alger Capital Appreciation Fund also discussed Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a global technology leader and a primary beneficiary of the ongoing digital transformation of enterprise computing, holding dominant positions in desktop software, cloud infrastructure, and generative artificial intelligence. We believe the company is well positioned as businesses continue to shift workloads to the cloud and integrate AI into their operations. During the quarter, shares detracted from performance despite the company delivering better-than-expected total revenue and earnings, with operating profitability improving substantially year over year. The primary source of investor disappointment was the company’s Azure cloud business, where revenue growth came in slightly below elevated expectations. Management attributed the shortfall in part to supply constraints and the allocation of computing resources, suggesting that the company is currently unable to fully meet customer demand rather than facing any softening in underlying appetite. Despite the near-term shortfall, the total value of newly signed customer contracts grew significantly, providing multiple years of committed future revenue, while management noted that its entire GPU capacity is fully contracted for its useful life.”
