Jim Cramer Defended American Superiority and Discussed These 13 Stocks

8. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) was discussed following a Morgan Stanley note that cloud growth might decelerate. Cramer said Azure was key to the bull thesis and warned that slowing growth would hurt the stock. Here are his thoughts:

“People don’t talk about Microsoft. It’s not on the red hot griddle. It’s not being criticized. No one really seems to care. Other than the fact that they wrecked the whole data center story by putting the Ohio on hold. We’re about three mile island still waiting for that. To me, that’s just the least economical way to get power.

Morgan Stanley comes out with a piece, Keith Weiss is really good, talking about how Azure is going to probably not make the number. Azure has been the swing point. We thought that Azure might, that’s the big cloud business. We thought it might accelerate. That was the key to betting why you want to be in the stock, was acceleration. Because the stock’s just been abysmal.

Now, David, no acceleration coming. Maybe deceleration, not good. And then also, co-pilot, which Mark Benioff constantly makes fun of. […]

But here’s what I think is so important, ultimately. Microsoft’s overall position remains strong, and the shares may be nearing a valuation floor. We keep hearing about floor and decor, and not the company. But I see the difference. In the end, what matters is this is a Zeitgeist stock. And it matters what Amy Hood says on the conference call. Amy Hood is fantastic. And if Amy Hood says, you know, Azure’s a little slower, then this doesn’t hold 380, it goes to 360. And I just think that, I hope that they offset, put some of those data centers over there in an open AI, right? Because they need that valuation they have. And then they surprise to the upside on the CapEx and then whamma jamma.”