Wedgewood Partners, an investment management company, released its third-quarter 2025 investor letter, highlighting AI stocks as Wall Street’s favorite topic. The Wedgewood Composite net return for the quarter was 5.9%, compared to the S&P’s 8.1%, Russell 1000 Growth Index’s 10.5%, and Russell 1000 Value Index’s 5.3%. Check the fund’s top 5 holdings for 2025 picks.

In the third quarter 2025 investor letter, Wedgewood Partners focused on Microsoft Corporation (NASDAQ:MSFT). Microsoft’s one-month return was 1.47%, with shares up 21.92% over 52 weeks. On October 21, 2025, Microsoft closed at $517.66 per share, boasting a market cap of $3.848 trillion. The company invested heavily in capex, showing attractive cash flow returns.

Truist raised Microsoft Corporation (NASDAQ:MSFT) stock price target to $675, reiterating a buy rating. Microsoft ranks second in the 30 Most Popular Stocks Among Hedge Funds, with 294 hedge fund portfolios holding it by the end of the second quarter. In Q4 FY 2025, Microsoft reported $76.4 billion revenue, an 18% increase from the previous year. Consider other AI stocks for potential upside.

Read more at Yahoo Finance: Here’s Wedgewood Partners’ Views on Microsoft (MSFT)