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Microsoft Corp. (MSFT): Among the Best Fortune 500 Stocks to Buy Now

We recently compiled a list of the 10 Best Fortune 500 Stocks To Buy Now. In this article, we are going to take a look at where Microsoft Corp. (NASDAQ:MSFT) stands against the other Fortune 500 stocks.

Should Investors Be Overly Cautious?

The aggregate revenue of the Fortune 500 companies in 2023 reached a record $41 trillion, up 0.1% year-over-year. Profits also rose 2% after declining earlier in 2022. The US took the lead from Greater China with the most companies on the Fortune 500 list for the first time since 2018. It has 139 companies as of August this year, an increase of 3 from 2023, while Greater China has 133 companies, down 9 from last year.

The financial sector, including banks and insurance companies, led all industries with the most Fortune 500 companies. Collectively tech giants brought in $282 billion in net income, up from $233 billion the previous year. Currently, 13 companies are making their Fortune 500 debut, reflecting the world’s fascination with AI and weight-loss drugs.

While the S&P 500 has recovered most of its losses, the rebound is being led by sectors like real estate, utilities, and consumer staples rather than major tech companies. Investors are shifting focus due to concerns over economic growth and expectations of Fed rate cuts.

Still, it seems like investors think that while investment portfolios should be diversified given the current economic conditions, this sentiment does not imply divesting from tech stocks, which of course contribute greatly to the aggregate Fortune 500 revenue. Jason Draho, UBS Global Wealth Management head of Americas Asset Allocation, emphasized this sentiment and we covered this earlier in our article about the 10 Best Tech Stocks To Buy Right Now Under $10:

“…investors should view potential dips in tech stocks as good long-term buying opportunities, as 10% corrections are historically good entry points in tech… He thinks that this market volatility is acyclical. The recent sell-off in the tech sector was not primarily due to economic concerns but rather to sector-specific issues. Despite this, tech giants will continue to benefit from the AI CapEx investment story. While there may be short-term challenges, the long-term outlook for these companies remains positive… Draho also cautioned against over-concentrating portfolios in the sector. He suggested diversifying exposure by investing in sector leaders as well as companies likely to benefit from tech disruption as a way to manage potential downside risks in tech stocks.”

Just last week, Dan Greenhaus, Solus Alternative Asset Management’s chief strategist discussed markets, and the rebound’s staying power, all while suggesting that predicting the Fed’s next move had become more difficult.

He discussed the ongoing recession concerns, particularly after negative comments from financial representatives. Despite these worries, he believes the US consumer is performing well, the economy is stable, and corporate profits are exceeding expectations. This context suggests that the recent sell-off in certain AI stocks was followed by a justified rebound, as issues appear limited to recent trends.

The S&P 500 is currently facing resistance around the 5,600 level, a key point of concern for investors. Dan Greenhaus noted that the recent inversion of the yield curve raised anxiety but the 2-10-year curve is slightly positive. Despite these worries, credit spreads for investment-grade bonds remain stable, and overall cross-asset indicators suggest a stable market environment.

Recently, discussions around potential interest rate changes have gained momentum, particularly following insights from Goldman Sachs CEO David Solomon. He indicated a likely 25 basis point cut by the Federal Reserve, although he also acknowledged the possibility of a 50 basis point reduction. Greenhaus believes the Fed will opt for a 25 basis point cut, marking the start of a series of reductions. This perspective is supported by the normalization of inflation and a slowing economy.

According to Greenhaus, the cyclical components of the stock market appear to be performing well, indicating that the overall economic fundamentals remain robust, and there is no concrete case for any specific rate cut scenario. As Fortune 500 companies continue to generate record revenues and profits as well, investor sentiments should not be shifting drastically. With that being said, we’re here with a list of 10 best Fortune 500 stocks to buy now.

Methodology

We first looked at the list of Fortune 500 companies, as of 2024. We then selected 10 stocks from these Fortune 500 companies that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A development team working together to create the next version of Windows.

Microsoft Corp. (NASDAQ:MSFT)

Market Capitalization as of September 14: $3201.93 billion

Number of Hedge Fund Holders: 279

Microsoft Corp. (NASDAQ:MSFT) develops and markets software, services, and hardware, with businesses worldwide and offices in over 100 countries. It is best known for its Windows operating system, Office productivity suite, and Xbox video game console, and is one of the world’s largest software makers by revenue.

In FQ4 2024, the company made $64.73 billion in revenue, recording a year-over-year increase of 15.20%. The earnings per share stood at $2.95. Both of these values exceeded Street estimates. During the same quarter, Microsoft Cloud, its most popular service, logged $36.8 billion in quarterly revenue, up by 21% year-over-year, and had record bookings.

It reported Office commercial sales of $48 billion. Individual Office sales also rose to $6.2 billion, reflecting a 4% growth. Dynamics ERP and CRM software sales reached $6.3 billion, a 19% increase. Bing sales grew by 3% year-over-year as more users switched from Google Search.

Microsoft Corp. (NASDAQ:MSFT) is a leader in AI technology, with its Azure OpenAI service seeing a 60% increase in customers, reaching 60,000 clients in the second quarter of this year. The company has formed strategic partnerships with Lumen Technologies and Palantir to enhance its position in the AI space and manage workloads on its cloud service. With such partnerships, investors can expect growing returns, making it a top Fortune 500 stock.

279 hedge funds hold long positions in the company. The highest shareholder is Bill & Melinda Gates Foundation Trust, with a stake worth $15,593,905,379.

Overall MSFT ranks 2nd on our list of the best Fortune 500 stocks to buy. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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Undervalued AI Stock Poised for Massive Gains: 10,000% Upside

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

My #1 AI stock pick delivered solid gains since the beginning of 2025 while popular AI stocks like NVDA and AVGO lost around 25%.

The numbers speak for themselves: while giants of the AI world bleed, our AI pick delivers, showcasing the power of our research and the immense opportunity waiting to be seized.

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

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We’ve got the answer, but there’s a twist…

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Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

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They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

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2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

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No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!