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Jim Cramer Highlights Microsoft’s $4 Trillion Moment and AI-Driven Strength

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks that Jim Cramer spoke about. During the episode, Cramer discussed the company’s recently posted strong earnings. He said:

“What should it have been about? Well, how about Microsoft? How about Meta? Nope. They were overshadowed by the Fig-Man Carnival. It was all anyone talked about down here. Call me old-fashioned, but I really wanted the market today to be defined by those earnings reports from two tech titans. I’m talking about Microsoft, briefly a $4 trillion company today, before closing just below that level, and Meta at just under $2 trillion. I wanted these to be foundational…

I wanted it because they smashed estimates. I mean, they crushed them by billions of dollars. These were marvels. They did so because they spent fortunes on artificial intelligence, something which many thought to be foolhardy, but it turns out to be they didn’t spend enough. Microsoft shocked people by obliterating the earnings estimates, now sells at roughly 35 times earnings… Given how spectacular these reports were, it was natural, totally natural for the stocks to go up. Microsoft gained nearly 4%…

I say they’re still too cheap, and most national economies are an inflation-binging joke anyway. I’ll take their balance sheets over any country in the whole world. We pay 35 times earnings for Microsoft, 29 times earnings for Meta, because we look at the benchmark, the valuation, the S&P 500, and the aggregate, that sells at 24 times earnings, then we try to assess how much better Microsoft and Meta are than the average stock, and they are really better.”

Pixabay/Public Domain

Microsoft Corporation (NASDAQ:MSFT) provides software, cloud services, devices, and AI-driven tools across productivity, business applications, and personal computing. The company’s major platforms include Microsoft 365, Azure, LinkedIn, Xbox, , and WGitHubindows.

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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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