9. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holdings in Q1 2026: 282
Software giant Microsoft Corporation (NASDAQ:MSFT)’s shares have been among the weakest this year. Over the year, they are down by 20% while year-to-date they are down by 19.8%. TD Cowen kept a Buy rating on Microsoft Corporation (NASDAQ:MSFT)’s shares on June 4th and maintained a $540 share price target. It remarked that the company is making progress in the AI software space by launching new models focusing on cost control. It added that these products should also reduce Microsoft Corporation (NASDAQ:MSFT)’s reliance on external products. Cramer has also discussed the firm several times this year. Most of his commentary has focused on weaknesses of the Copilot software platform. In this appearance, he discussed the shares being weak amidst the market turbulence generated by SpaceX’s IPO:
“And David, Microsoft is down six. So Microsoft is really helping the cause. . .they are next, they’re [SpaceX] coming for ’em. He’s [Elon Musk] coming for ’em. . .I was surprised Microsoft was down as well as it was, yesterday.
“Well Microsoft’s helping out. I was surprised it was up yesterday. I know that they may not be worried about job loss. I’m worried about earnings loss. I want to see some earnings momentum from that hyperscaler. Because they’re the one that’s. . .most in the firing line.”
Sands Capital Select Growth Strategy discussed Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) reported revenue and operating income above consensus expectations, but shares declined as Azure growth met, rather than exceeded, investor expectations. Azure grew 38 percent year over year on a constant currency basis, consistent with recent quarters, and guidance did not signal near-term reacceleration. Capacity constraints, rather than demand, continue to limit Azure growth. Microsoft is prioritizing compute for internal AI workloads, including Copilot, which reduces near-term availability for external customers. This reflects strong underlying AI demand and reinforces Microsoft’s positioning, even as it constrains reported growth. We see potential for acceleration as capacity expands. Additionally, Microsoft’s leadership in agentic AI development represents incremental upside that we believe is not yet reflected in expectations.”
