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Microsoft Corporation (MSFT): Billionaire Steve Cohen Trims Position

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.

Steve Cohen has held a long-term bullish view on Microsoft Corporation (NASDAQ:MSFT). This is reflected in the 13F filings as well. The tech giant has featured in the 13F portfolio of the fund since the second quarter of 2015. Back then, this position comprised just 4,000 shares. In the next quarter, the holding jumped to 2.1 million shares. The share ownership then stayed under the 2 million mark till early 2024, barring one exception. In the third quarter of 2025, the fund owned 2.6 million shares in the company. However, filings for the fourth quarter of 2025 reveal that this holding has been trimmed by 20% and the fund now owns 2 million shares of Microsoft.

READ NEXT: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.

Microsoft Corporation (NASDAQ:MSFT) is one of the favorite stocks among elite hedge funds. One catalyst for this interest is the Microsoft 365 Copilot transition into Agentic AI, where software does not just answer questions but performs complex, multi-step tasks, like automated procurement or project management. In late 2025/early 2026, Microsoft inked landmark deals with Cognizant, Infosys, and Wipro to deploy 50,000+ Copilot licenses. Hedge funds view these massive enterprise rollouts as the blueprint for global adoption. Another long-term driver for the shares is the move by the tech giant to control its own hardware costs. Microsoft is rolling out its custom Maia AI chips within Azure. Hedge funds believe this will significantly improve inference economics, reducing Microsoft’s reliance on expensive NVIDIA hardware and protecting cloud margins even as capital expenditure surges.

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Stocks to Buy According to Billionaire David Abrams and 15 Best Stocks to Buy According to Billionaire Seth Klarman.

Disclosure: None. Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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