Jim Cramer Suggests ‘Gunboat Diplomacy’ For China & Discusses These 7 Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders In Q4 2024: 317

Microsoft Corporation (NASDAQ:MSFT) has seen its fortunes somewhat change this year. It once again became the world’s most valuable company earlier this month after the US-China trade war gutted Apple’s share price. Recently, Microsoft Corporation (NASDAQ:MSFT) has made headlines with reports that it is slowing down data center spending – a decision that goes against the surge in AI-related industry spending. Here’s what Cramer said on the matter:

“Microsoft better get its act together. They are falling behind in the arms race. That’s how I felt.”

“Okay so Taiwan Semi’s saying that demand for AI chips is accelerating. And that everybody has to have them. And there isn’t anyone who doesn’t want them. But there is one outfit that doesn’t want them. Which is Microsoft. I came away thinking . . .they’re not willing to spend. They’re not willing to spend.”

“[On MSFT spending $80 billion] That ain’t enough partner. I am saying that they made this commitment to Ohio and then they pulled back. They did the Three Mile lunacy and idiocy and who knows what they’re going to do there. And all I can tell you is that if I were Elon Musk, I would say, hey, let me have all of Microsoft. . .”

“Well Azure’s going to be dropping. People are talking about Azure dropping a percent and going to 30%. That’s not good. You’re hoping for it go the other way, 34%. And what I feel is this, I think that, and this is backed up by people who I actually do reporting on rather than just actually get a blue card from somebody, that CoreWeave, if you look at what CoreWeave’s doing, a lot of it is with OpenAI. And if I were Microsoft I would be switching my CapEx over to OpenAI so I could for once in the third, they’ve missed three quarters. You move your CapEx over to OpenAI, your CapEx therefore goes down. People think you’re a visionary and they start buying Microsoft.”

“[On Citi cutting MSFT price target] I know. Azure low end of the guide is bad. I know that CoPilot, you got that one man wrecking crew of Benioff coming out, trashing that all the time. Meanwhile, I had someone on my conference call yesterday, for the club, saying that they’re in the house of pain because of Salesforce. That’s been, it’s been a long time since you were in the house of pain with Salesforce.”