Jim Cramer Discussed These 7 Stocks

5. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Observing the sell-off in the market, Cramer mentioned Microsoft Corporation (NASDAQ:MSFT) and noted that the Magnificent Seven do not exist anymore.

“The whole day was obvious that only consumer products and healthcare stocks make you money. There haven’t been many days like this, so people sell their losers out of fear so out goes Apple or Microsoft and Netflix and Meta, why not? You don’t want to give up the gain and there is no Magnificent Seven anymore. Scrap it right now, okay? I’m banning the term from the show as of this evening.”

Microsoft (NASDAQ:MSFT) develops software, services, devices, and solutions, covering areas such as productivity tools, cloud services, enterprise applications, gaming, and products for both individuals and businesses. On March 7, Stifel reduced its price target on MSFT stock to $475 from $515 and maintained a Buy rating on the stock after meeting with the company’s investor relations team.

Based on investor sentiment and the primary focus on capital expenditure (capex), the meetings reinforced the firm’s view that the stock may remain range-bound until the market is confident that Azure/Commercial Cloud growth can outpace capex increases, as it did before the current generation AI capex ramp. Although Stifel expects the rapidly advancing generative AI cycle to enable Microsoft (NASDAQ:MSFT) to maintain double-digit revenue and profitability growth in the long term, it lowered its target due to higher capex expectations after management reiterated a capex guidance of approximately $87B for FY25 and projected slower growth for FY26.