Cramer: Microsoft Cloud Transparency Wins Over Investors

Treasury Yields and Fed Rate Expectations Drive Market Gains

US stocks moved higher on Thursday as investors grew more optimistic that the Federal Reserve might leave interest rates unchanged during its upcoming decision scheduled for September 16. According to market data from the CME Fed Watch tool, the probability of a September rate hike fell to approximately 50%, dropping from 63% the previous day.

This shift followed public comments from Fed Governor Christopher Waller, who stated that he would lean toward holding rates steady, provided there are no surprises in upcoming inflation data. In a livestreamed morning meeting, CNBC Investing Club host Jim Cramer noted that Thursday’s trading activity highlights the heavy influence that bond yields exert on equities. “When rates are steady, people come out and buy stocks,” Cramer said.

Microsoft Shares Rise Following Azure Revenue Disclosure Changes

Microsoft Corporation shares advanced more than 3% following the company’s announcement that it will begin disclosing quarterly revenue for its Azure cloud computing business for the first time. Rival public cloud operators Amazon and Google have reported these figures separately for years. According to financial disclosures, the change accompanies a broader corporate reorganization that reduces Microsoft’s operating segments from three to two: the Agents and Infra segment—housing Azure, Microsoft 365, and GitHub—and the Device and Consumer segment, which covers advertising, Xbox, and Windows.

Truist Securities analyst Terry Tillman responded to the developments by raising Microsoft’s price target to $675 from $650 while maintaining a Buy rating, citing robust growth across cloud and artificial intelligence sectors. However, questions remain regarding how much of Azure’s recent growth stems directly from its partnership with OpenAI. During market discussions, analysts and commentators noted that separating the infrastructure units helps clarify whether Azure’s expansion matches the trajectory of Amazon Web Services.

Broadcom Shares Tumble on Fourth Quarter Guidance Concerns

Broadcom shares dropped over 4% despite delivering a third quarter beat. While the company raised its artificial intelligence revenue outlook to $115 billion from $100 billion, its fiscal 2026 fourth quarter revenue guidance fell short of Wall Street expectations. Portfolio director Jeff Marks noted that the market retains reservations regarding the pace of infrastructure spending.

The CNBC Investing Club previously halved its position in Broadcom to reduce exposure to the AI data center buildout as market sentiment cooled. Cramer expressed regret for not exiting the position entirely, warning that the sell-off may continue further. Nevertheless, he indicated willingness to hold the remaining shares due to Broadcom’s deepening relationship with AI startup Anthropic, which is slated to go public this fall, and stated an interest in repurchasing shares if the price drops to $310.

Frequently Asked Questions

What caused the shift in Federal Reserve rate expectations?

Market expectations shifted after Fed Governor Christopher Waller indicated he would lean toward holding interest rates steady at the upcoming September meeting, provided upcoming inflation data contains no major surprises.