Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Tudor Investment Corp has been overwhelmingly bullish on Microsoft Corporation (NASDAQ:MSFT) for many years. The fund has held a sizable stake in the company since the fourth quarter of 2010. Back then, this stake comprised 368,000 shares but was increased to close to 1.6 million shares by the next quarter. Following this, it was trimmed, dropping down to 38,000 shares by the end of 2011. Filings for the fourth quarter of 2025 show that the fund owned 718,000 shares in the company, representing an increase of more than 95% compared to filings for the previous quarter.
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Photo by Microsoft Edge on Unsplash
Hedge funds view Microsoft Corporation (NASDAQ:MSFT) as a winner of the transition from chatbots to autonomous AI agents. In January 2026, Microsoft officially disclosed that Microsoft 365 Copilot reached 15 million paid seats, a massive 160% year-over-year increase. Institutional investors are also betting on the Work IQ suite, where AI agents now perform complex, multi-step tasks like automated procurement and project management. While the broader cloud market has matured, Azure continues to defy gravity through its AI infrastructure lead. In Q2 FY2026, Microsoft Cloud revenue surpassed $50 billion for the first time, growing 26% YoY. Azure and other cloud services grew 39%, significantly outpacing competitors.
While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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