Microsoft Corporation (MSFT): The Acceleration Is Incredible, Says Jim Cramer

We recently published 11 Stocks Jim Cramer Discussed As He Revealed How To Become ‘King’ Of AI. Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer recently discussed.

Jim Cramer discussed Microsoft Corporation (NASDAQ:MSFT) after the firm’s latest earnings report, which saw it cross the $4 trillion market valuation after beating analyst estimates for Azure growth. Here is what Cramer said:

“Yeah, I think that, people, it’s hard for people to understand as you follow this in a granular fashion, that just a few quarters ago we were thinking that this business was going to decelerate. Decelerate meant that you didn’t have a great company. You had a company that theoretically could be well behind Amazon Web Services. You start thinking about whether it’s at a Google Cloud level.  Now it’s been a dramatic acceleration. These guys are competitive. And they don’t necessarily give the air of competition, but this is just a gut check on everybody else because this is so extraordinary.

“But this acceleration of a company so old, is just incredible. And you know, Amy Hood, who’s the CFO, is going over it, she’s an amazing CFO. But she approaches things, as she approaches the life. In a very matter of fact way. And by life I mean if you get her off the desk, she’ll just, look, we’re doing 37, people thought we were doing 32. And you’ll say, are you kidding? I mean that’s amazing. And she’ll say, no actually the team’s working hard. It is just done in such a, let’s say a carefree way that they sound like, well you know what we accelerated a little. There’s no pride, there’s total humility. It’s a remarkable company.

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“One of the things that I think there’s a key, I know I’m gonna say something that I think it just shocked me. ‘Cloud demand is outpacing supply.’ So in other words, they’re spending fortunes. And everyone says, they’re spending too much. And that was the bear narrative. But they’re not spending enough. And there was a question in the call about whether they, how much they’re spending, and every dollar seems to be producing a tremendous amount of revenue. That’s very unheard of. The leverage of this company is extraordinary. Now if I were Jensen Huang, I’m not as worried about H20 today as I am thinking, well I better start producing more for these guys.

“I need people to understand that these companies are incredible. They’re American. They’re not celebrated enough. They’re making people big money. And we talk about the Fed? And the renovations?”

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