Jim Cramer Reveals 12 Stocks Investors Should Monitor Closely

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Investors: 279

Jim Cramer reported that Microsoft Corporation (NASDAQ:MSFT) is collaborating with BlackRock, Inc. (NYSE:BLK) and other companies to raise $100 billion aimed at developing data centers for AI and the necessary energy infrastructure. This initiative called the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), is initially focused on raising $30 billion to support both new and existing data centers.

“Microsoft, meanwhile, is joining BlackRock and other companies to raise $100 billion to develop data centers for AI and the energy infrastructure to power them. The Global Artificial Intelligence Infrastructure Investment Partnership, or GAIIP, is initially looking to raise $30 billion for new and existing data centers.”

Microsoft Corporation (NASDAQ:MSFT)’s positive outlook is supported by strong Q2 2024 earnings, with total revenue of $59 billion, a 15% increase from last year, and a net income of $21 billion, indicating healthy profit margins. A key factor in this growth is the cloud services segment, especially Azure, which experienced a 25% revenue increase, reinforcing Microsoft Corporation (NASDAQ:MSFT)’s leadership in the cloud market.

Microsoft Corporation (NASDAQ:MSFT)’s hybrid cloud strategy and seamless integration of Azure with other Microsoft products give it a competitive edge. Additionally, Microsoft Corporation (NASDAQ:MSFT)’s significant investments in artificial intelligence, including its partnership with OpenAI and new AI features in Microsoft 365 and Azure, position it well for future growth as demand for AI tools rises.

The ongoing popularity of Office 365 among businesses and consumers ensures steady subscription revenue, while the gaming division, boosted by initiatives like Xbox Game Pass and the acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI), is expected to drive further engagement and revenue. Microsoft Corporation (NASDAQ:MSFT)’s commitment to sustainability, with ambitious goals for carbon neutrality and renewable energy, appeals to modern consumers and investors, enhancing its brand reputation.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT), our conviction lies in the belief that under the radar 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 the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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