Microsoft (MSFT)'s Traditional Software "Was Extraordinary," Says Jim Cramer

We recently published 10 Stocks on Jim Cramer’s Radar. Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer recently discussed.

Microsoft Corporation (NASDAQ:MSFT) latest earnings report saw its shares drop by 4% even though the firm’s $77.67 billion in revenue and $3.72 in earnings per share beat analyst estimates, and its cloud computing revenue grew by 40%. Investors were spooked by CFO Amy Hood changing tack and outlining that capital expenditures would grow in 2026. The Microsoft Corporation (NASDAQ:MSFT) CFO had previously expected expenditures to drop, and Cramer discussed her comments and CEO Satya Nadella:

“People have to go over what Amy Hood said with a fine tooth, fine toothed comb. She just talked, the CFO, really talked about the need to address the constraints and how much they need to spend. By the way, all of their actual enterprise software, the traditional software, was extraordinary. Copilot was fantastic. We overlook that at our own peril.”

“I think Satya did a great job. . .it jumped because of the OpenAI deal and now it’s giving back the OpenAI [inaudible]. OpenAI kept as a sub rosa text of that whole conference call. Because of how much they are giving them, what’s OpenAI is going to look like. And then there’s these fatuous rumors that OpenAI is going to be a trillion dollar company, when even the company itself has said, Jim don’t go north of 500 billion, please.”

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.