The top AI stocks Congress bought aren’t NVIDIA

NVIDIA NASDAQ:NVDA ushered in a new era with the surge of artificial intelligence and its trend towards full-stack AI services. The company’s leadership position is reflected in its results and share price, which is still growing. Members of Congress are aboard the NVIDIA freight train, but it’s not the group’s most purchased AI title. That title goes to Microsoft NASDAQ:MSFTwhich has a commanding lead over AI stock no. 2, NVIDIA.

More members of Congress have bought NVIDIA than Microsoft, but that’s where this tech stock’s dominance ends. 10 members made 17 NVIDIA purchases totaling approximately $3.186 million, while eight members made 24 Microsoft trades totaling approximately $31.7 million — almost 10 times as much. If this doesn’t register as an opportunity for investors, it means they aren’t listening carefully enough.

Which Members of Congress Are Buying NVIDIA and Microsoft?

Who will buy NVIDIA? Members on both sides of the aisle in both houses have bought NVIDIA. But Democrats, particularly Nancy Pelosi, bought most of the shares. Representative Pelosi purchased more than $1 million in late November, just before the stock price began to rise and double. Other notable members include Representatives Pete Sessions (R-TX) and Kathy Manning (D-NC), as well as Senator Markwayne Mullin (R-OK), all of whom are reasonably active investors. Each made more than one purchase during the year.

The list of congressional investors buying Microsoft is equally distinguished. including the members themselves. Again, most of the purchases are from Democrats, but buyers come from both houses and from both sides of the aisle. For Microsoft, the biggest buyer is Rep. Josh Gottheimer (D-NJ), who bought several million worth of shares. The second largest buyer is Representative Pelosi, who purchased at least $500,000 worth of shares. Republicans on the list include Representative Sessions, Representative Michael Guest (R-MS), and Senator Mullin.

Microsoft market sentiment is bullish; Higher prices ahead

Extremely bullish market sentiment for Microsoft will likely push the stock to new highs. Microsoft is the most searched and followed name among Markebeat subscribers, it also occupies the fourth position on Marketbeat’s list of most updated stocks and is present among our best rated stocks.

Analyst sentiment is noteworthy because Microsoft is gaining new coverage. Sentiment is moving up from a moderate buy and peaking at a strong buy, and the price target is trending upward. As of late March, the consensus of $423 is fair value at current prices, but is up 50% year-over-year and is being driven higher by analysts. Every price target issued since the end of November 2023 is above consensus, and all targets issued since the fourth quarter release are above $450. The latest revisions include a new Wedbush price target, adding 17% to the consensus.

Analysts also drive NVIDIA. Analyst activity over the past twelve months has put NVIDIA stock in the top spot for Most Upgraded, and the upgrade cycle is unlikely to end now. The company is expected to post another 240% year-over-year revenue increase, and the forecast may be light. NVIDIA is the leading supplier of AI chips and is making a strong commitment to partnerships with everyone, including Microsoft, to build its own AI empire.

The technical outlook for Microsoft is bullish

Microsoft’s technical outlook is bullish. The market broke out of a trading range late last year and signaled a continuation of long-term trends that could take it down to the $490 level. This target is in line with Wedbush’s target and still leaves another $100 upside at the high end of the range. This goal was also recently reiterated by Truist, which sees AI and Copilot achieving superior performance this year.

Before you consider Microsoft, you’ll want to hear this.

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