Microsoft (MSFT) Rose in Q2 as Results and Guidance Update Surpassed Expectations

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was -5.87%, and its shares gained 20.28% of their value over the last 52 weeks. On September 08, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $498.20 per share, with a market capitalization of $3.703 trillion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:

"Microsoft Corporation (NASDAQ:MSFT), a global leader in software and cloud services, saw its shares trade higher in the second quarter following an earnings report and guidance update that exceeded consensus expectations. The company delivered strong performance across all business segments, with particularly robust growth in both core and AI-related Azure services. Management’s outlook for Azure remains especially positive, citing rising customer demand for AI solutions."

Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 294 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter compared to 284 in the previous quarter. In the fourth quarter of fiscal year 2025, Microsoft Corporation (NASDAQ: MSFT) reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of AI stocks investors are watching closely. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.