Parnassus Investments released its Parnassus Value Equity Fund Q2 2025 investor letter, reporting a net return of 7.24%, outperforming the Russell 1000 Value Index. Microsoft Corporation (NASDAQ: MSFT) is one of the top 5 holdings, with shares closing at $512.57 on July 29, 2025, and a market cap of $3.81 trillion.

The investor letter highlights Microsoft Corporation (NASDAQ: MSFT) rising after strong quarterly results and optimism for its Azure cloud platform. Microsoft (MSFT) ranks 2nd among the 30 most popular stocks with 284 hedge fund portfolios holding positions in Q1 2025, exceeding analyst EPS expectations for Q3 2025 at $3.46.

While Microsoft (MSFT) remains popular among hedge funds, some believe other AI stocks offer greater upside potential with less downside risk. Investors are urged to explore undervalued AI stocks that could benefit from current economic trends for higher returns in a shorter timeframe.

Read more at Yahoo Finance: Is it Still a Wise Move to Buy Microsoft (MSFT) Shares?