Jim Cramer Discusses These 10 Stocks & Says He’s In Waiting For AI GPU Spending Clarity

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders In Q3 2024: 279

Microsoft Corporation (NASDAQ:MSFT) is the most valuable software company in the world and the second most valuable firm overall following the DeepSeek selloff. Yet, the firm’s shares have lost 11% since their peak in July last year primarily on the back of investor worries about its AI initiatives not delivering profit fast enough to warrant the billions of dollars already spent in capital expenditure. Microsoft Corporation (NASDAQ:MSFT)’s latest earnings led to the stock crashing by 6% as it forecast a midpoint of 31.5% growth for its Azure cloud business that fell below analyst estimates of 33%. Ahead of the earnings, Cramer was worried about Microsoft Corporation (NASDAQ:MSFT)’s valuation multiples:

“Look I watched Brad Gerstner yesterday. There’s a sense that the multiple has become very low. So it’s actually one of the lowest at Microsoft.”