Microsoft Corporation (MSFT): Israel Englander Trims Position

Microsoft Corporation (NASDAQ:MSFT) is featured on the Israel Englander Stock Portfolio: Top 10 Stock Picks.

Microsoft Corporation (NASDAQ:MSFT) represents another long-term bet of Israel Englander. His fund first purchased a stake in the company back in the fourth quarter of 2010. This position comprised 250,000 shares. This holding remained relatively constant for years, before the fund went on a buying spree and increased it to 4.4 million shares in late 2014. By the fourth quarter of 2020. Millennium Management had grown this holding to more than 8 million shares. Thereafter, the position was trimmed and dropped to around 788,000 shares by the middle of 2021. Filings for the fourth quarter of 2025 show that the fund owned 2.3 million shares in the firm, down 33% compared to filings for the previous quarter.

Microsoft (MSFT) Stock: Truist Raises Price Target to $675, Reiterates Buy

Microsoft Corporation (NASDAQ:MSFT) stock has had a rough year but hedge funds remain bullish on the long-term prospects of the firm. Microsoft’s 30% drawdown in early 2026, its worst since 2008, has reset its valuation to roughly 22x forward earnings. This is well below its 10-year average, leading value-oriented hedge funds to aggressively add to their positions. Hedge funds are betting that Microsoft is moving past the AI experimentation phase into full-scale deployment. In early 2026, Microsoft inked massive strategic partnerships with IT giants like Cognizant, Infosys, TCS, and Wipro to deploy 50,000 Copilot licenses. Analysts expect upcoming price hikes for Microsoft 365 – scheduled for July 2026 – and new Agentic AI features to add between $2 billion and $6 billion in incremental revenue by 2027.

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.

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