1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Cramer, noting that Microsoft Corporation (NASDAQ:MSFT) contributed to the froth recently, said:
“Let’s speak to the frothiest of froth, quantum computing. Yeah, it is pretty funny when you think about it. We know that before Microsoft started talking about quantum computing and being all jazzed and bulled up about it, there was this fringe quality to the entire theme. Then Microsoft went all in about quantum computing based on all new source of matter, made it sound like quantum’s around the corner.”
Cramer pointed out that nothing seemed more credible than Microsoft (NASDAQ:MSFT) promoting a compelling narrative around quantum computing, until Friday evening when a Wall Street Journal article titled “Physicists Question Microsoft’s Quantum Claim” came out. Cramer reacted strongly to the piece, describing it as a “total takedown” of the company’s quantum computing claims. He emphasized that the article was a harsh and thorough criticism, noting that it was a “vicious beating” for Microsoft’s pitch in the quantum computing space. He added:
“Here’s the snippet, ‘This is where you cross over from the realm of science to advertising,’ said Jay Sau, a theoretical condensed matter physicist at the University of Maryland… Talked about a guy who knows the stuff. He even worked for Microsoft on some odd jobs. Maybe got to like an expert who’s willing to cross a pretty darn big employer with some truth that sent down all the quantum computing stocks. Rigor one, froth nothing. Can we please stick a knife in quantum already?”
Microsoft (NASDAQ:MSFT) creates a wide range of software, services, devices, and solutions, including productivity tools, cloud computing services, enterprise applications, gaming products, and offerings for both consumers and businesses.
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 time frame. 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.
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