Jim Cramer’s 2024 Predictions and His Top 5 Stock Picks

1. Microsoft Corp (NASDAQ:MSFT)

Number of Hedge Fund Investors: 306

“Get back into Microsoft.”

This is what Jim Cramer said recently in a program on CNBC while talking about a market rotation that he believes is currently going on as investors take profits from tech stocks and invest in other companies.

In December, Jim Cramer said that Microsoft Corp (NASDAQ:MSFT) was the “undisputed leader in AI.”

Microsoft Corp (NASDAQ:MSFT) is the most popular stock among the 910 hedge funds tracked by Insider Monkey. As of the end of the third quarter of 2023, 306 hedge funds tracked by Insider Monkey had stakes in Microsoft Corp (NASDAQ:MSFT).

In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT):

“Microsoft Corporation (NASDAQ:MSFT) is the largest holding in our portfolio. Given its partnership with OpenAI and leading position in the cloud, Microsoft is well-positioned to profit from the boom in AI. However, due to Microsoft’s tremendous scale and diversification, the company is not dependent upon AI for its success. Microsoft’s diverse portfolio of software and cloud offerings ensures the company will thrive even if the next hot thing, like AI, fizzles out. In this way, Microsoft is emblematic of our broader investing approach. We seek to benefit from powerful trends, but we do so with an eye toward managing risk and limiting downside in case the future turns out to be less rosy than hoped for.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Jim Cramer Recommended Selling These 12 Stocks and the Jim Cramer Stock Portfolio: 12 Recent Additions.