Jim Cramer Says Microsoft Will ‘Blow Us Away’ As Stock Sits 25% Below Peak

by | Feb 18, 2026 | General

Microsoft Corp (NASDAQ:MSFT) stock has cooled off sharply in 2026 — and that’s exactly when Jim Cramer thinks the tech giant could deliver a surprise.

“Prediction-MSFT will do a total refresh and BLOW US AWAY instead of Co-Pilot,” the “Mad Money” host posted on X.

Shares are trading around $401, down 15% year to date and nearly 12% over the past month. The stock now sits roughly 25% below its 52-week high of $555.45, a significant reset for one of the market’s AI leaders.

The pullback reflects rising investor scrutiny around Microsoft’s massive AI spending — and whether returns are coming fast enough.

Copilot Questions Create Pressure

While Copilot remains central to Microsoft’s AI strategy, adoption data has sparked debate. Reports suggest only about 3.3% of Microsoft 365 users are currently paying for Copilot, raising concerns about monetization pace relative to expectations.

That matters because Microsoft is investing heavily — planning up to $50 billion in AI infrastructure expansion. Data centers, custom AI chips, and Azure capacity build-outs don’t come cheap. Investors want proof that these investments will translate into sustained revenue acceleration.

The stock’s recent weakness suggests markets are waiting for that inflection point.

A Bigger AI Reset Ahead?

Cramer’s prediction hints that Copilot may not be the final form of Microsoft’s AI ambitions. The Redmond, Washington-based company is actively developing in-house AI models and pushing toward greater AI self-sufficiency, reducing long-term reliance on external partners.

If Microsoft unveils a deeper AI integration across Windows, Office, Azure, and enterprise platforms — or introduces a new monetization model — sentiment could shift quickly.

With shares much closer to their $344.79 52-week low than last year’s peak, expectations have cooled. That lowers the bar for a positive surprise.

For now, Microsoft sits in consolidation mode. But if Cramer is right, the next chapter of its AI story may be bigger than Copilot — and powerful enough to reignite momentum.

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