Microsoft (MSFT) Has a Lot of Firepower, Says Jim Cramer

1 month ago 22

Ramish Cheema

Sat, February 7, 2026 astatine 9:07 AM CST 2 min read

We precocious published 12 Stocks Jim Cramer Talked About. Microsoft Corporation (NASDAQ:MSFT) is 1 of the stocks that Jim Cramer talked about.

Software elephantine Microsoft Corporation (NASDAQ:MSFT)’s shares dipped by 7% successful extended trading aft it reported its fiscal third-quarter net report. The results saw the steadfast station $81 cardinal successful gross and $4.14 successful adjusted net per stock to bushed expert estimates of $80.27 cardinal and $3.97. Following the earnings, Stifel downgraded Microsoft Corporation (NASDAQ:MSFT) to Hold from Buy and slashed the stock terms people to $392 from $540. At the bosom of the important revaluation was the firm’s Azure unreality computing business. Stifel pointed retired that Microsoft Corporation (NASDAQ:MSFT)’s fiscal 2027 guidance was optimistic, considering Azure proviso constraints and contention successful the AI industry. Before the earnings, Cramer wondered whether the firm’s Copilot level was competitive, and aft the report, helium discussed Azure and equated Google’s Cloud caput with Lebron James:

“Microsoft, someone, Stifel, downgraded Microsoft. Now a instrumentality was passed a distant Moon agone here, don’t you ever, ever, downgrade Microsoft. Could beryllium a bottom. You downgrade Microsoft, they person a batch of firepower. Even if Copilot is losing retired successful presumption of the, if you look astatine Gemini paid, Copilot’s evidently not that good. You cognize David, you person astir apt Apple, but you they privation to involved, they effort to instrumentality you into Copiloting each the time, I’d alternatively beryllium a rider and thrust successful Gemini. I don’t request to Copilot jack.

Microsoft (MSFT) Has a Lot of Firepower, Says Jim Cramer

“Now, Amazon has retail and that’ll assistance them, okay, but Azure is the 1 that I deliberation is the existential crisis.

While we admit the imaginable of MSFT arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.