Jim Cramer says Microsoft is winning the AI spending battle. Alphabet is losing it. Both companies are spending billions on chips and data centers. The prize for winning is spending more.
Cramer called Microsoft a buy after earnings. He stayed cautious on Alphabet. Same hobby, different grade.
Picture a gym where members compete to see who pays the most for membership. Microsoft just got a trophy. Alphabet got a lecture about its form.
The chart doesn't care. The chart has never watched Mad Money. The chart has no television and no feelings. It has support and resistance, which is more than Cramer's thesis has.
Retail traders will read this and buy Microsoft at the open. They will do it with the confidence of a man who just heard a stranger's opinion on a podcast. Some will sell Alphabet to fund it. They will call this "rotating."
It is not rotating. It is a toddler swapping crayons.
Cramer is a buy on one tech giant and a shrug on another, based on a quarter of earnings. By next quarter he will say the opposite with the same eyebrows. The sound effects will be louder.
Alphabet is "paying the price," says the headline. Alphabet has Google Search, YouTube, and Waymo. It will survive Jim's cautious tone. Its shareholders can lie in a hammock made of cash and ignore him.
Microsoft is "winning," which means its spending is applauded and Alphabet's is scolded. Nobody has asked what either company is building. The answer is a very expensive autocomplete.
Buy Microsoft if you want. Sell Alphabet if you must. Either way, a man who yells at a soundboard has told you what to do with your rent money.
Enjoy your victory, retail trader. Your portfolio is the only thing in this spending battle that actually runs out of money.
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