Holly Molly, look out, Hewlett-Packard (HPQ) and Dell (DELL). You just got your first new competitor in ages, and it's your insides: Microsoft (MSFT).

Yes, Microsoft's Surface tablet is a replacement for the notebook, laptop, whatever, and it can easily be seen as a method to supplant the offerings of Microsoft's best customers.

Faced with a tablet-less group of clients, it seems Microsoft decided it could wait no longer, certainly not wait long enough, for Meg Whitman's HPQ or Dell's Dell and just decided to launch.

It's a bold and gutsy move. And I would think it has a chance because of Microsoft's heft, except for two reasons: It's built on the same operating system that the Nokia Lumia is built on, and the Lumia is a failure right out of the box (the device looked to be heavily supported by AT&T (T) now seems to have disappeared for good).

I worry about Microsoft here. I had been thinking that this company could be on the verge of something big with Windows 8, which I like, but I now think the lack of uptake from the Lumia 900 coupled with the fact that Microsoft was late with mobile, social and cloud may mean that this is a step backward, not forward, especially when you consider the wrath of Dell and HPQ. Maybe those two are trapped? Maybe they have no choice? Maybe they can accept the competition? Maybe Microsoft is better than Intel (INTC), more secure, because if Intel did this, Dell and HPQ would immediately go to AMD (AMD).

Plus, Apple seems to be willing to take on Samsung and also buy from Samsung, so maybe Microsoft thinks it is in a stronger position to compete and also be allied with its customers.

I just don't think it's all that good an idea longer term.

But you have to get a kick out of this feisty new Microsoft.

Even as Anton Wahlman says in a great piece, the real winner is Nvidia (NVDA), which has the tablet chip and is the chip in the new MacBook and is rumored to be the chip in the Google tablet to come next week.

Do nothing, Microsoft, and buy Nvidia.

Random musings: Still confused about how Oracle (ORCL) could be doing so well yet nobody seems to think it is doing all that well. Odd, hastily conceived conference call because of the resignation of the key sales guy. The whole thing seemed out of body to me.

(Microsoft owns and publishes Top Stocks, an MSN Money site.)

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in the stocks mentioned.

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