We just covered the Jim Cramer Stock Portfolio: Top 10 Stock Picks. Microsoft Corporation (NASDAQ:MSFT) ranks #2 (see the Jim Cramer’s top 5 stock picks in 2026 here).
Microsoft Corporation (NASDAQ:MSFT) ranks second in our list of the top stock picks of Jim Cramer in 2026. The Redmond giant has been a long-term holding of Cramer, but he has shared some doubts around Microsoft Corporation (NASDAQ:MSFT)’s relationship with OpenAI.
Microsoft Corporation (NASDAQ:MSFT) has about 27% equity stake in OpenAI but concerns started to spread on Wall Street amid some friction between the two companies after some reports said OpenAI explored working with other providers like Amazon to reduce its dependence on Microsoft Corporation (NASDAQ:MSFT).
Earlier this month, Reuters reported Microsoft Corporation (NASDAQ:MSFT) was considering legal action against OpenAI and Amazon over a $50 billion deal that allegedly violates its exclusive cloud partnership with the ChatGPT maker.
In September, Cramer called Microsoft Corporation (NASDAQ:MSFT) one of the “elite eight” stocks and said the company stands to benefit if speculative AI plays keep dropping and the market turns to quality stocks.
Microsoft Corporation (NASDAQ:MSFT) is down 20% so far this year.
Ironvine Capital Partners stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2025 investor letter:
Microsoft Corporation (NASDAQ:MSFT) is a crucial partner for millions of businesses, governments, and other institutions around the globe. Its reach is broader than any other enterprise software provider in the world with roughly 1.4 billion Windows customers, a quarter of which are paying subscribers to its Office 365 productivity apps. It also holds the second largest share of the cloud computing market behind AWS and is growing faster, thanks in part to the strategic partnership CEO Satya Nadella architected to power OpenAI’s ChatGPT and enterprise workloads. In addition to a significant equity stake in the company, this relationship has created a valuable source of new customers as many of the early enterprise adopters of OpenAI’s tools were not historically Microsoft cloud customers. Demand for Microsoft’s server fleet continues to be robust, with Azure growth accelerating in recent quarters (Click here to read the full text).
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.
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