Analyst Says Microsoft (MSFT) in ‘Better Shape’ Than Amazon Amid AI Advantage

We recently published a list of 10 Jim Cramer Stocks to Watch as US-China Prepare to Begin Talks. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stocks that Jim Cramer discussed.

The optimism over US-China trade talks is increasing as the US Treasury Secretary is set to meet China’s trade negotiator in Switzerland later this week.

In a latest program on CNBC, Jim Cramer expressed his renewed optimism for major tech stocks and said the negative market sentiment about these companies was weakened after the latest quarterly reports.

“Sometimes you forget why you ever liked something in the first place. Take the super stocks, the hyperscalers, the tech titans—I don’t care whatever you want to call them. These stocks all got lumped together because of their size, their gigantic market caps that dwarf the rest of the market, and then they lost their juice,” Cramer said. “It’s their scale, their smarts, their moats, their balance sheets, and their sensational products.”

Jim Cramer also talked about the latest data in company reports that shows the demand for data centers remains strong.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each stock, we mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Number of Hedge Fund Investors: 279

Alex Kantrowitz, Big Technology podcast founder, said in a latest program on CNBC that Microsoft Corporation (NASDAQ:MSFT) results showed that the economy was in a better shape in the first quarter than expected. He believes the company is in a better position when compared with Amazon:

“I think what the Microsoft earnings results underscore, and the expectations for Amazon underscore, is that the economy was actually in quite good shape in Q1. So, I do expect to see Amazon benefit from that. Now, the only overhang for Amazon is they didn’t have the OpenAI models in the way that Microsoft has. I know AI isn’t driving all the cloud spending, but that is important when companies think about the way they’re going to expand their thinking on that. So, Microsoft could be in better shape than Amazon.”