Is Microsoft Corporation (MSFT) Chase Coleman III’s Top Pick?

Accounting for a 10.49% stock ($3.40 billion) successful the billionaire’s portfolio, Microsoft Corporation (NASDAQ:MSFT) ranks arsenic Chase Coleman III’s apical banal pick. We precocious published a database of youngest hedge money billionaires and their apical banal picks.

Citi stated connected February 10, 2026, that contempt affirmative net revisions, the caller bundle selloff has created a cardinal accidental arsenic markets chopped terminal multiples owed to concerns astir AI disruption.

In a caller screen, Citi recovered that bundle stocks had fallen astatine slightest 10% successful the erstwhile month, portion their terminal multiples were present beneath guardant P/E ratios, and that statement EPS estimates for 2025–2027 were higher. The steadfast cited Microsoft Corporation (NASDAQ:MSFT) arsenic 1 of the companies that was well-positioned successful each AI scenarios, claiming that caller unit was much the effect of aggregate compressions than of contiguous cardinal deterioration.

In contrast, connected February 9, 2026, Melius Research downgraded Microsoft Corporation (NASDAQ:MSFT) from ‘Buy’ to ‘Hold’ with a $430 terms target, citing the request for much AI-driven superior expenditures to support up with Google and Amazon, which could enactment further strain connected escaped currency flow. Under the updated escaped currency travel assumptions, the expert besides raised concerns astir valuation.

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Microsoft Corporation (NASDAQ:MSFT) develops software, unreality services, devices, and endeavor solutions crossed segments, including Productivity and Business Processes, Intelligent Cloud, and More Personal Computing to service consumers, developers, and organizations worldwide.

While we admit the imaginable of 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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Disclosure: None.