Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.
Steve Cohen has held a long-term bullish view on Microsoft Corporation (NASDAQ:MSFT). This is reflected in the 13F filings as well. The tech giant has featured in the 13F portfolio of the fund since the second quarter of 2015. Back then, this position comprised just 4,000 shares. In the next quarter, the holding jumped to 2.1 million shares. The share ownership then stayed under the 2 million mark till early 2024, barring one exception. In the third quarter of 2025, the fund owned 2.6 million shares in the company. However, filings for the fourth quarter of 2025 reveal that this holding has been trimmed by 20% and the fund now owns 2 million shares of Microsoft.
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Microsoft Corporation (NASDAQ:MSFT) is one of the favorite stocks among elite hedge funds. One catalyst for this interest is the Microsoft 365 Copilot transition into Agentic AI, where software does not just answer questions but performs complex, multi-step tasks, like automated procurement or project management. In late 2025/early 2026, Microsoft inked landmark deals with Cognizant, Infosys, and Wipro to deploy 50,000+ Copilot licenses. Hedge funds view these massive enterprise rollouts as the blueprint for global adoption. Another long-term driver for the shares is the move by the tech giant to control its own hardware costs. Microsoft is rolling out its custom Maia AI chips within Azure. Hedge funds believe this will significantly improve inference economics, reducing Microsoft’s reliance on expensive NVIDIA hardware and protecting cloud margins even as capital expenditure surges.
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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