Microsoft Holdings Trimmed by Major Investor as AI Infrastructure Plans Unveiled

Gabelli Funds LLC has reduced its stake in Microsoft Corporation's (NASDAQ:MSFT) stock by 6.3% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund now owns 494,391 shares of Microsoft's stock after selling 33,212 shares during the quarter.

Gabelli Funds LLC's holdings in Microsoft make up approximately 1.2% of the company's total holdings, making it the firm's sixth biggest position. The value of these holdings is $183,009,000 at the end of the most recent quarter.

This is not an isolated instance of institutional investors modifying their positions in Microsoft. Other major investors such as Norges Bank, Auto Owners Insurance Co, Nuveen LLC, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC, and Laurel Wealth Advisors LLC have also made significant changes to their holdings during the same period.

The software giant has a market capitalization of $3.76 trillion and a price-to-earnings ratio of 28.18. Microsoft's data center spending is described as disciplined by Bernstein, which raised its price target on the stock from $647 to $660. The firm also notes that new infrastructure will remain useful for Azure even if AI demand moderates.