Jim Cramer’s Game Plan: Top 14 Stocks to Watch

7. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Talking about the prominent technology company, Microsoft Corporation (NASDAQ:MSFT), Cramer said:

“How about two wild cards? First is Microsoft. Now, this has become a battleground stock because its aggressive data center build-out, so far failed AI PC, got a call ‘em as I see ‘em, a possible fallout with OpenAI, and the possibility that Copilot is nothing but Clippy 2, yes, that little paperclip that almost ruined Microsoft Office in the late nineties. I keep trying to figure out how CFO Amy Hood can be positive on her part of the conference call, which is really frankly the only part of the conference call that matters because she handles the guidance.

And the guidance is the guidance. We pared this one back for the Charitable Trust and if it weren’t for the fact that Microsoft has an installed base to meet demand, I have to tell you, we would’ve sold our entire position.”

For fiscal Q2 2025, Microsoft (NASDAQ:MSFT) expects Azure cloud services to grow by 31% to 32%, slower than the previous quarter’s 34%. The Intelligent Cloud segment is projected to see an 18% to 20% revenue increase year-over-year. Additionally, AI product sales are expected to remain steady, with Microsoft optimistic that Azure will gain momentum in the second half of the fiscal year due to new data center investments.