We just covered Billionaire Tom Steyer’s 10 Stock Picks with Huge Upside Potential and Microsoft Corporation (NASDAQ:MSFT) ranks 10th on this list.
Microsoft Corporation (NASDAQ:MSFT) is a long-term stock pick of Tom Steyer. His fund first disclosed a stake in the company back in the fourth quarter of 2010. Back then, this position comprised just under 2.3 million shares. By the third quarter of 2011, this stake had grown to over 4.5 million shares. Thereafter, the fund trimmed the holding and sold it off completely by the middle of 2012. A new position in the stock was then opened in the third quarter of 2013. This comprised 3.8 million shares. The company has featured in the 13F portfolio of the fund consistently since then. Filings for the fourth quarter of 2025 show that the fund owned 2.2 million shares in the firm, up 15% compared to filings for the previous quarter.
Microsoft Corporation (NASDAQ:MSFT) recently released earnings for Q3 2026. It disclosed that AI-related revenue is now on a $37 billion annual run-rate, a 123% increase year-over-year. The company reported over 20 million paid Copilot users, signaling that it is successfully converting its massive user base into high-margin, recurring AI subscriptions. Azure and other cloud services grew 40% in the most recent quarter, outperforming expectations. Hedge funds are rewarding Microsoft’s aggressive data center build-out. CEO Satya Nadella confirmed that Microsoft added one gigawatt of capacity this quarter alone and is on track to double its overall footprint in just two years.
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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