NVIDIA NVDA entered a new epoch with the rise of AI and its dedicated foray into full-stack AI services. The company’s prevailing position is evidenced by its performance and stock valuation, which continues to climb. While Congress members are boarding the NVIDIA bandwagon, it falls short of being their most sought-after AI investment. That esteemed title is held by none other than Microsoft MSFT, boasting a substantial lead over NVIDIA in Congress’ investment portfolio.
Although more Congress members opted for NVIDIA over Microsoft, the latter’s appeal transcends mere quantity. 10 members conducted 17 transactions in NVIDIA, amassing approximately $3.186 million in investments, whereas eight members engaged in 24 trades in Microsoft, totaling about $31.7 million — nearly tenfold. For astute investors, this glaring contrast should serve as a resounding call to action.
Congressional Investment Patterns in NVIDIA and Microsoft
Among the aficionados of NVIDIA stock are members from both sides of the political spectrum and legislative chambers. Noteworthy among these are Democrats, with Nancy Pelosi leading the charge with an investment exceeding $1 million in late November, shortly before the stock’s meteoric surge and doubling in value. Other active investors include Representatives Pete Sessions (R-TX), Kathy Manning (D-NC), and Senator Markwayne Mullin (R-OK), each making multiple investments throughout the year.
Similar to NVIDIA, Microsoft garners attention from a distinguished cohort of Congressional investors, including the aforementioned members. While Democrats dominate the investment landscape, Republicans also feature prominently. Representative Josh Gottheimer (D-NJ) emerges as the most substantial Microsoft investor, injecting several million dollars into the stock, closely followed by Representive Pelosi, who wagered at least $500,000. Republican investors include Representatives Sessions and Michael Guest (R-MS), as well as Senator Mullin.
Microsoft’s Bullish Market Sentiment and Future Prospects
A surge of bullish market sentiment surrounds Microsoft, foreshadowing an upsurge in stock value. The tech giant holds the distinction of being among the Most Searched and Most Followed names by Marketbeat subscribers. It secures the 4th position on Marketbeat’s prestigious Most Upgraded Stock list and also features in the Top-Rated Stocks index.
Of particular note is the analysts’ unyielding optimism towards Microsoft, evident in their escalating coverage and shifting sentiment from Moderate Buy towards a robust Buy shade. The price target trajectory is noticeably upward, with a consensus price of $423 reflecting the current fair valuation, marking a 50% year-over-year surge buoyed by analysts’ robust projections. Notably, all price targets issued since late November 2023 exceed the consensus, with post-Q4 release targets consistently surpassing $450. The most recent endorsement by Wedbush injects an additional 17% to the consensus target.
NVIDIA commands similar traction among analysts, reigning as the Most Upgraded stock over the past year, with the upgrade cycle showing no signs of diminishing. Predictions hint at another 240% year-over-year revenue surge, with forecasts potentially underestimating the company’s future trajectory. As the primary chip supplier for AI, NVIDIA intensifies collaborations, including strategic partnerships with Microsoft, in fortifying its AI dominion.
Positive Technical Outlook for Microsoft
Microsoft’s technical perspective gleams with optimism, epitomized by a breakout from a trading range in late 2023, signaling a sustained uptrend propelling it towards the $490 threshold. This target aligns harmoniously with Wedbush’s projection and promises an additional $100 potential upside at the peak of the range. Recent reaffirmations by Truist endorse this outlook, underlining the pivotal role played by AI and Copilot services in driving Microsoft’s outperformance this year.
The insightful article “The Most Bought AI Stock by Congress Isn’t NVIDIA” was first featured on MarketBeat.
