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We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against the other analysts favorites.
US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.
As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.
To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation is a technology company that creates and supports software, devices & solutions, and services. Its business process and productivity segment provides Microsft Teams platform, office consumer services, exchange, and other services.
Donald Trump has just announced Project Stargate which includes private sector investments in AI infrastructure to the tune of hundreds of billions of dollars. Microsoft will likely be a beneficiary of this as it is a key player in the AI infrastructure and also a partner in the project. Moreover, Microsoft also has a significant stake in OpenAI, a major partner of this initiative.
Wedbush Securities analysts believe this will start a new wave of spending on AI infrastructure. Project Stargate may just be the beginning and the rest of the Big Tech companies could chip in with their contributions as well, taking total investments to well over a trillion dollars in the coming days.
Overall MSFT ranks 4th on our list of the stocks that became analyst favorites this week. While we acknowledge the 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 timeframe. If you are looking for an AI stock that is as promising as MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.