We recently published a list of 10 Stocks Wall Street Is Calling Bullish Amid Market Turmoil. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stocks that Wall Street is calling bullish amid market turmoil.
The S&P 500 is down 8.6% in a month while the Nasdaq has lost nearly 13%. Markets continue to scare retail investors as stock after stock struggles to deal with the aftermath of Donald Trump’s unpredictable and aggressive policies.
While it is advisable to stay out of the market till the dust settles, one also can’t deny that it is times like these that bring opportunities. We decided to come up with a list of stocks that are expected to go up even in the existing gloomy environment.
To come up with the list of 10 stocks that Wall Street is bullish on, we looked at stocks that were recently upgraded by analysts and have performed well in the last 5 days of trading.
A development team working together to create the next version of Windows.
Microsoft Corporation is a developer and supporter of services, devices, software, and solutions. The company operates through The Intelligent Cloud, More Personal Computing, and Productivity and Business Processes segments.
Microsoft has disappointed investors in the last year or so, underperforming the broader market. The company continues to spend massively on AI infrastructure with no idea of a return on investment in sight.
Things could change soon though as analysts start noticing the recent price decline. D.A. Davidson recently upgraded the stock, boosting its price target from $425 to $450. Analysts believe the firm is the best positioned among the Mag6 stocks to deal with a consumer slowdown.
“While the extent of the consumer slowdown may still be unclear, we believe some slowdown is more likely than not. This would mean less risk for Microsoft’s earnings estimates than the rest of the mega caps, making it the most likely of the Mag6 to become defensive.”
Moreover, the company is also reconsidering its capex plans, shunning investments that it believes may be overkill in the backdrop of DeepSeek AI revelations.
“Evidence has emerged that Microsoft is now offloading less desirable capex to CoreWeave, Oracle and Softbank. We believe that Microsoft has decided to reduce capacity for OpenAI training in its data centers, as it recognizes their gains from pretraining have begun to hit a wall.”
Microsoft is second on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 317 hedge fund portfolios held MSFT at the end of the fourth quarter, which was 279 in the previous quarter.
Overall, MSFT ranks 1st on our list of stocks that Wall Street is calling bullish amid market turmoil. While we acknowledge the potential of MSFT as a leading 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 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 is originally published at Insider Monkey.