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According to Jim Cramer, Microsoft (MSFT) is Actually Under Pressure
We recently published a list of Jim Cramer Discusses These 13 Stocks & Rejects The AI PC Super Cycle. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against stocks that Jim Cramer discusses.
In a fresh appearance on CNBC’s Squawk on the Street, Jim Cramer commented in quite a bit of detail on artificial intelligence and AI PCs. AI, the technology that has caught the investing world by storm, has two facets. The first covers enterprise computing with cloud computing services such as Azure and AWS offering businesses new AI tools for their tasks. The second is the consumer end, dominated primarily via chatbots and services like the Chinese firm DeepSeek’s R1 and OpenAI’s o1.
Another aspect of AI that received quite a lot of attention last year was AI PCs. These computers use hardware designed to run artificial intelligence workloads. This hardware includes graphics processing units (GPUs) and neural processing units (NPUs), which means that their price tag is often higher than a standard computer.
On top of Cramer’s mind was a recent Morgan Stanley consumer survey report which analyzed consumer sentiment with respect to a super-cycle in AI-enabled products. The bank revealed that just 15% of the 400 respondents bought some of the products primarily because they wanted to access AI. The bank added that 60% of respondents inadvertently bought an AI PC and more than 60% shared that they would not pay extra for AI products.
Commenting on the research, Cramer started by sharing “I think the AI hardware super cycle Morgan Stanley piece is perhaps the most damming piece I’ve read.” According to him, the research was striking “Because there’s absolutely no evidence of a super cycle whatsoever.” The CNBC host shifted towards enterprise AI use cases and was appreciative of them. “I mean I think AI is very good when you listen to what Jamie Dimon [inaudible] to say, that AI is very good when you listen to what Marc Benioff has to say,” he outlined.
However, while AI has impressed business users, Cramer admitted to being wrong about consumer demand for AI PCs. “But the PC, I thought we were all gonna upgrade. And now we’re all in wait-and-see mode,” he shared. Cramer added that those he knew who have bought an AI PC “haven’t used it or there’s a button there and it doesn’t work.”
Yet, even though consumer interest in AI PCs might be lackluster, Cramer is still an AI believer. He revealed that “I use it [ChatGPT] every day.” One ChatGPT use case he likes is comparing drugs. “And you start at ChatGPT. You really do. And it’s very authoritative and it tells you who to go to. And I think it’s extraordinary. It’s an extraordinarily good product,” according to Cramer.
According to Jim Cramer, Microsoft (MSFT) is Actually Under Pressure
In a recent episode of Mad Money, financial analyst Jim Cramer discussed the current state of Microsoft (MSFT) and why he believes the tech giant is actually under pressure.
Cramer pointed out that while Microsoft has seen impressive growth in recent years, including a 44% increase in revenue in the last quarter, there are several factors that could be putting pressure on the company.
One of the major concerns Cramer highlighted is the increasing competition in the tech industry, particularly from companies like Amazon and Google. These companies are rapidly expanding their cloud computing services, which could pose a threat to Microsoft’s dominance in the space.
Additionally, Cramer noted that Microsoft’s stock price has been relatively stagnant in recent months, despite the company’s strong financial performance. This lack of movement could be a sign that investors are starting to doubt Microsoft’s ability to continue delivering strong results.
Overall, while Microsoft remains a strong and profitable company, Cramer believes that it is facing increasing pressure from competitors and market expectations. Investors should keep a close eye on how Microsoft navigates these challenges in the coming months.
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jim cramer, microsoft, msft, stock market, investing, under pressure, financial news, technology sector
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