Here’s What Hurt Microsoft’s (MSFT) AI Positioning

2 weeks ago 12

Soumya Eswaran

Fri, April 3, 2026 astatine 8:19 AM CDT 3 min read

Magellan Asset Management, an concern absorption company, released the 4th fourth 2025 capitalist missive for “Magellan Global Fund”. A transcript of the missive tin beryllium downloaded here. The money focuses connected investing successful outstanding companies astatine charismatic prices and, astatine the aforesaid time, leverages a heavy knowing of the macroeconomic scenery to negociate risk. As measured by the MSCI World Index successful USD, the planetary equities roseate 3.1% successful the December 4th and 2.5% successful AUD terms. The portfolio underperformed the benchmark this quarter, returning 0.1%, amid choppy trading and marketplace rotation. The enactment began to displacement from AI Mega Cap stocks to sectors with stronger fundamentals and amended valuations. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Magellan Global Fund highlighted stocks similar Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is simply a multinational bundle institution that develops and supports software, services, devices, and solutions. On April 2, 2026, Microsoft Corporation (NASDAQ:MSFT) banal closed astatine $373.46 per share. One-month instrumentality of Microsoft Corporation (NASDAQ:MSFT) was -8.68%, and its shares gained 3.79% implicit the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a marketplace capitalization of $2.77 trillion.

Magellan Global Fund stated the pursuing regarding Microsoft Corporation (NASDAQ:MSFT) successful its 4th fourth 2025 capitalist letter:

"The largest detractors to the portfolio’s show implicit the 4th were Microsoft, Netflix and Microsoft Corporation (NASDAQ:MSFT). After performing powerfully earlier successful the twelvemonth connected accelerating maturation successful Azure, Microsoft gave backmost immoderate of the beardown performance. This was driven chiefly by moderating optimism connected Microsoft's AI positioning via its adjacent narration with OpenAI owed to beardown execution astatine Google and Anthropic. While short-term comparative show volition proceed to beryllium affected by shifting views connected AI positioning, taking a longer-term perspective, we presumption each of the incumbent unreality providers arsenic winners of the accrued adoption of AI applications."

Truist Raises Price Target to $675, Reiterates Buy

Microsoft Corporation (NASDAQ:MSFT) ranks 2nd connected our database of 40 Most Popular Stocks Among Hedge Funds. According to our database, 312 hedge money portfolios held Microsoft Corporation (NASDAQ:MSFT) astatine the extremity of the 4th quarter, the aforesaid arsenic successful the erstwhile quarter. While we admit the imaginable of Microsoft Corporation (NASDAQ:MSFT) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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