Jim Cramer and Billionaire Ken Fisher Love These 5 Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Value of Fisher Asset Management’s 13F Position: $8.32 billion

Number of Hedge Fund Shareholders: 309

Coming in at second place is Microsoft Corporation (NASDAQ:MSFT), with Ken Fisher holding an $8.32 billion stake in the company, more than $3 billion greater than the value of his third-ranked Amazon holding. Fisher has been a shareholder of the tech giant for more than two decades. Hedge fund ownership of Microsoft climbed even higher in the second quarter to reach another all-time high and ranks as the most popular ticker among hedge funds.

Microsoft is a stock that Jim Cramer swore his Charitable Trust would never sell, yet it did sell some MSFT shares in January, partly on Cramer’s fears that Microsoft’s layoffs were the harbinger of a weak forthcoming earnings report. He noted it wasn’t a stock to “hunker down in” and wait out a potential storm given its high P/E.

However, Cramer has also been extremely bullish on Microsoft Corporation (NASDAQ:MSFT)’s AI endeavors, calling the company a “winner” during a Lightning Round segment in June and praising the implementation of AI across many of the company’s brands. He also noted in June that Morgan Stanley’s Keith Weiss issued a glowing report along with a massive target price raise to $415 on the stock, with Weiss declaring Microsoft the generative AI leader.

Dan Loeb’s Third Point Management recently raised its stake in several cloud software companies, including Microsoft Corporation (NASDAQ:MSFT), as revealed in its second quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”