Top 5 High Conviction Stocks to Buy According to Hedge Funds

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 282

Microsoft Corporation (NASDAQ:MSFT) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 2 that Microsoft Corporation (NASDAQ:MSFT) announced a “sweeping slate” of AI initiatives to go beyond apps, ranging from Nvidia-powered PCs and a new in-house reasoning model to autonomous ​workplace assistants and gadgets. The company aims at remaking computing around AI at Microsoft Build, its annual software developer conference in San Francisco, and also showed off a new computer called the Surface RTX Spark Dev Box loaded with an Nvidia chip. The computer was called a “dream machine” by CEO Satya Nadella, who added that he was on the wait list to buy it.

Reuters further reported that executives all showcased Project Solara, which is a family of prototypes that encompasses devices the ⁠size of a smart speaker or keycard badge, based on chips from Qualcomm and MediaTek.

Microsoft Corporation (NASDAQ:MSFT) develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments.

While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

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