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Jim Cramer Discusses Microsoft Corporation (MSFT)’s Cloud Business In Detail

We recently published 10 Stocks Jim Cramer Discussed As He Remained Optimistic About American Ingenuity. Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer recently discussed.

Microsoft Corporation (NASDAQ:MSFT)’s cloud computing business is a key focus point for Jim Cramer. In his previous comments, the CNBC TV host has compared the cloud business, called Azure, with Amazon’s Amazon Web Services. This time, he discussed the relationship between Microsoft Corporation (NASDAQ:MSFT) and AI giant OpenAI and combined it with Azure to raise a critical point about Microsoft Corporation (NASDAQ:MSFT)’s hypothesis:

“[After Faber commented that MSFT is moving in a different direction to OpenAI and having a partnership with OpenAI] You’re so right. Look, the Microsoft piece of the puzzle, I think is, that if you go back to the last quarter, Amy Hood was talking about explosive numbers [inaudible] for Azure. And one of the things that people heard was, wait a second, maybe Azure, Microsoft’s equivalent of Amazon Web Services, is really coming on strong. David, what I hear from you, if you split these two companies up, maybe Azure’s not growing as fast. Maybe Amazon Web Services is not that far behind. I don’t know that!

“[When asked whether his comments were because the growth is largely as a result of OpenAI] The last big delta in growth might have been OpenAI. It was such a huge move. I want to see the breakdown of how much was OpenAI. Everyone wants to know how much OpenAI is really doing. I want to know how much of Azure was dependent upon OpenAI. And maybe that goes away. Maybe that goes away. We own Microsoft for my charitable trust. I don’t want that. But Amazon Web Services has been feeling the heat.”

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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