CNBC's Jim Cramer said recent sell-offs are creating buying opportunities in select stocks, backing his picks with a focus on fundamentals over fear-driven narratives.

CrowdStrike and Microsoft Highlight AI-Driven Resilience

On Tuesday, Cramer pointed to CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as a recovery story, arguing that concerns around AI competition are misplaced. He said, "AI and Anthropic weren't headwinds for cybersecurity… They were tailwinds," noting the stock rebounded strongly after earlier declines and gained further after a bullish analyst upgrade.

CrowdStrike shares were under pressure following new AI-driven competition concerns.

The stock extended its decline after Anthropic launched Claude Code Security, an AI tool designed to detect and fix software vulnerabilities, raising fears about disruption in the cybersecurity space.

The announcement triggered a broader sell-off across peers such as Palo Alto Networks, Inc. (NASDAQ:PANW), and Cloudflare, Inc. (NYSE:NET), as investors reassessed whether AI-native tools could challenge existing platforms.

Cramer also highlighted Microsoft Corp. (NASDAQ:MSFT), saying its core strengths remained intact despite a sharp drop, adding, "I am glad we didn't dump it… Could have been a big mistake."

Recently, Bank of America Securities said Microsoft remains well-positioned for AI growth, with near-term stock performance tied to Azure and Copilot trends.

Analyst Tal Liani said Azure growth depends on how quickly Microsoft adds AI capacity, noting strong demand but limited infrastructure as a constraint, with further expansion expected to unlock upside.

He added that Copilot adoption is key to proving AI returns, as increased usage could drive higher revenue per user and ease competitive concerns.

Liani also pointed to steady growth in Microsoft's core businesses, including Microsoft 365, Dynamics, and LinkedIn, and maintained a Buy rating with a $500 price forecast.

Cramer's Thesis: Focus on Fundamentals, Not Fear

Cramer said investors should rely on "faith in management, faith in the model, faith in the balance sheet, faith in the comeback" when evaluating stocks during volatility.

While acknowledging that not every stock will recover, he said those who avoid panic selling often benefit, adding that investors who give in to fear may later wonder, "What were we thinking?"

Price Action: Microsoft shares were up 0.91% at $428.03, and CrowdStrike Holdings shares were up 1.26% at $455.26 during premarket trading on Wednesday, according to Benzinga Pro data.

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