CNBC host Jim Cramer argues Microsoft’s AI growth and cash flow reduce need for a $100 billion capital raise.
Jim Cramer stated Microsoft does not require a $100 billion capital raise, citing strong AI-driven growth and financial position. The CNBC host noted the market lacks sufficient liquidity for a $600 billion valuation impact, though he acknowledged potential over-optimism.
Microsoft shares have declined 14.6% over the past year and 15% year-to-date. Analysts like Piper Sandler maintain an Overweight rating with a $540 price target, highlighting Copilot AI platform expansions, including new features like Copilot Cowork and WorkIQ, which could add over five million seats.
UBS also reiterated a Buy rating on June 7, focusing on Microsoft’s role in the broader cloud computing sector. Cramer’s skepticism about Copilot’s competitive edge predates recent upgrades, but his latest remarks center on capital needs rather than AI performance.