Jim Cramer Says AI Is Back & Discusses These 10 Stocks

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders In Q4 2024: 317

Microsoft Corporation (NASDAQ:MSFT)’s stock appears to have turned around a corner since the firm’s latest earnings report. The shares have gained 10% as management painted a positive picture of AI growth. AI growth and profitability have driven Microsoft Corporation (NASDAQ:MSFT)’s narrative since last year and led the firm to lose its crown as the world’s most valuable company. Here are Cramer’s thoughts about the earnings report:

“Well Microsoft had guided, so suddenly you get on this call and they just crush it. They guide higher and there’s glee on the call. It’s glee. Amy Hood is happy. Satya Nadella is happy. They correct people if anyone is less happy. It was just, David, a happy call. Happy call.”

“Oh my god, remember how Amy Hood at one point said that was non-AI, that was looking good she corrected a wayward analyst who just didn’t get the memo.”

“And they’re, both Microsoft and Meta have one single problem that the liars who used, who come on air all the time, maybe they’ll realize they’re lying, maybe they’re just brainwashed. These guys all need more NVIDIA, They all need more data center. I mean that was the theme. I thought the theme was there’s too much NVIDIA and there’s too much data center. David, there was a false narrative that started ever since. . . the DeepSeek Sputnik. And now you have Jensen Huang, explaining to President Trump, how you have to be able to have more countries and we don’t know whether he’s going to win.”

MSFT is a stock Jim Cramer recently discussed. 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 doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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