Jim Cramer is Talking About These 7 Stocks

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Talking about Microsoft Corporation’s (NASDAQ:MSFT) solid quarter during last Wednesday’s episode, Cramer highlighted the company surpassing the estimates and advised to focus on the forward guidance.

“Microsoft traded up initially on the strength of the results for the reporting quarter, including a top and bottom line beat, plus, much better than expected growth for its Azure cloud computing business. It grew 33%, Wall Street’s looking for 29 and 12 points of that growth came from the company’s AI offerings. That said, anyone trading Microsoft now’s being reckless. As I told you, many times, many times the success of each Microsoft quarter is usually determined by the company’s forward guidance, which they don’t give us until… the conference call that’s going on right now.”

Microsoft (NASDAQ:MSFT) is a leading technology company that develops and supports a wide range of software, services, devices, and solutions. Its portfolio includes productivity applications, business solutions, cloud services, operating systems, hardware, and gaming products.

According to IBISWorld, the company has a noteworthy market share in around 18 industries. It holds the largest market share in the Database, Storage, and Backup Software Publishing industry, representing approximately 56.0% of the total revenue in this sector.

For fiscal Q2 2025, the company’s management expects growth for its Azure cloud services to range between 31% and 32%, marking a deceleration from the previous quarter’s 34% growth rate. Overall, revenue for the Intelligent Cloud segment is projected to increase by 18% to 20% year over year.

Microsoft (NASDAQ:MSFT) management projected that sales from AI-related products are expected to remain consistent with last quarter’s performance. The company is optimistic about Azure’s potential to accelerate in the latter half of the fiscal year, driven by new investments in data center capacity that are set to come online.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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