Jim Cramer, the host of Mad Money, recently discussed how major capital expenditure (CapEx) commitments from top tech companies have been received by the market, especially in light of the introduction of DeepSeek. According to Cramer, investors had initially embraced these significant AI investments, with many tech giants committing large sums toward advancing artificial intelligence.
One such important venture was Stargate, an AI infrastructure project unveiled at the White House on January 21st, the first full day of Trump’s presidency. He added:
“They’re spending a hundred billion upfront and could go up to $500 billion over the next four years. Now some of them question whether these companies even have that kind of money, but hey, you know who didn’t care? I mean Wall Street… Now, something big changed in recent weeks though, and that was the arrival of DeepSeek.”
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Cramer noted that DeepSeek, the Chinese generative AI tool, has demonstrated performance nearly on par with the top U.S. AI systems, but at a fraction of the cost, using far less hardware. He highlighted that although DeepSeek was launched in 2024, it only caught the attention of Wall Street and Silicon Valley in mid-January 2025 after a Chinese quant hedge fund released a white paper detailing the technology’s creation. The paper’s release on January 20th brought DeepSeek into the spotlight, and the market reacted strongly, triggering a significant tech sell-off.
“The collective acts about DeepSeek caused a huge nasty tech sell-off… The still unanswered question that DeepSeek has forced investors to ask is whether or not developers of AI applications still need to spend huge amounts on infrastructure in order to get the best results.”
Cramer mentioned that despite this uncertainty, the big tech companies have maintained their capital expenditure forecasts, and so far, they have not been penalized for sticking to these predictions. Cramer pointed out that these companies do not appear to be taking DeepSeek’s impact seriously.
“Bottom line though, we’ve gone pretty quickly from a world where major investments in AI infrastructure are cheered, I mean, literally cheered by investors to a less certain world where it seems that the investors don’t like it and are starting to get skeptical about some of these big spending commitments. Now that’s a huge change, people, and if it continues this way, we might need to rethink our top picks and tech going forward.”
13 Stocks Jim Cramer Recently Talked About
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 5. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
13 Stocks Jim Cramer Recently Talked About
13. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 5
Cramer said that he would be a buyer of Alliance Resource Partners, L.P. (NASDAQ:ARLP) and guessed that President Donald Trump might like coal.
“It’s intriguing to me because I think the president doesn’t believe in, in traditional global warming. If that’s the case, then he must really like coal. I’m not a big fan of coal, but that has to do more because I believe in the science and the, but therefore I think if he, I’m not in charge, he is. I would buy the stock.”
Earlier in January, Cramer discussed Alliance Resource Partners (NASDAQ:ARLP) and said:
“… then there’s another company called Alliance Resources Partners LP. It’s a master limited partnership that’s the largest coal producer in the eastern United States. Incredibly profitable company sells at less than nine times earnings as befits a slow to no growth enterprise and it’s not undiscovered because coal prices have actually done well thanks to overseas demand.
All that said, this market embraces anything energy, that means coal will soon be back and it makes a lot more sense now that coal is a champion in the White House. If you hear coal mentioned by the president and it’s picked up… Alliance Resources will be the one people will grab because it’s a master limited partnership. It has a terrific 10% yield, but the yield’s only that high because people think that the payout needs to be cut. May well be true.”
12. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 7
Cramer expressed his lack of enthusiasm when he was asked about Redwire Corporation (NYSE:RDW) and stated:
“Well, okay, so Redwire is part of a company, it’s, it does space work, and Professor Ben Stoto, who works with me, we both are kind of sceptical of space stuff and I think we just have to kind of hold off. That said, we’ve done some work on this and I’m not gonna say that we’re thrilled… It’s not necessarily one of our favorite stocks, Redwire. I think that we’re gonna have to hold off.”
Redwire (NYSE:RDW) is a space infrastructure and innovation company offering essential solutions for both government and commercial clients in the space sector. When Cramer discussed the company in October 2024, he remarked, “Everybody wants to be in the space business, and I’ve got to tell you, I don’t.”
11. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
A caller asked if SoundHound AI, Inc. (NASDAQ:SOUN) is a meme stock or something more. This is what Cramer had to say in response:
“I was talking about this with Jeff Marks today. It’s very funny you mentioned that because Soundhound is a stock that my friend Dan Ives likes and I, I don’t like to go against Dan. I think he’s terrific, but I think the stock is a little elevated.”
SoundHound AI (NASDAQ:SOUN) develops voice AI solutions that help businesses create custom voice assistants and improve customer service with real-time data integration. Interestingly enough, Cramer called the company stock a “meme stock” in January when he said:
“Okay, this is a meme stock and they kinda get it going. I’m never gonna get in the way of a meme stock because you never know how high they can go.”
Over the past year, SoundHound AI (NASDAQ:SOUN) stock rose more than 558%.
10. Bitdeer Technologies Group (NASDAQ:BTDR)
Number of Hedge Fund Holders: 19
When a caller asked about Bitdeer Technologies Group (NASDAQ:BTDR), Cramer suggested investing in Bitcoin instead.
“I’m a huge believer in Bitcoin, okay. I think you should just buy Bitcoin. That’s what you wanna do. We don’t fool around. We buy the best, we leave the raggedy others to the rest.”
Bitdeer Technologies (NASDAQ:BTDR) offers blockchain and computing solutions, including hash rate sharing, mining machine hosting, and cryptocurrency mining, while also managing mining data centers and selling mining equipment. Cramer has been advising his viewers to go for Bitcoin solely for a while now. Less than a week ago, when a caller asked about Coinbase, he said:
“Listen, sunshine, just go buy coin, just go buy the Bitcoin. Well, yeah. What do we do with the Coinbase? We don’t want the Coinbase, we want the Bitcoin because that could be a, by the way, the, we make that special petroleum reserve slash Bitcoin reserve, that’ll do better than Coinbase.”
9. Manhattan Associates, Inc. (NASDAQ:MANH)
Number of Hedge Fund Holders: 27
Cramer highlighted Manhattan Associates, Inc.’s (NASDAQ:MANH) stock decline and said:
“That stock got clubbed. I mean they really crushed it. If there’s insider buying in that, we’re gonna do some homework and find out because wow, I cannot believe how much that thing went down, ugly.”
Manhattan Associates (NASDAQ:MANH) develops and provides software solutions for managing supply chains, inventory, and omnichannel operations, including tools for warehouse management, transportation, order fulfillment, and customer engagement. On January 29, Loop Capital reduced its price target to $275 from $310 but maintained a Buy rating on the stock.
The firm acknowledged that Manhattan Associates (NASDAQ:MANH) Q4 results and guidance were mixed, with foreign currency impacts reducing reported RPO by $33 million and several clients delaying service implementation projects due to macroeconomic concerns, prompting management to lower its 2025 forecast. Despite the drop in share price, Loop Capital views this as a buying opportunity, continuing to see the company as an “exceptional franchise.”
8. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 31
A caller asked Cramer about his medium and long-term prognosis of SoFi Technologies, Inc. (NASDAQ:SOFI) and his reply was:
“The reason why SoFi has moved from where it was to where it is, is because it’s much more of a service provider stock, it’s FinTech than it is a lender these days. But I do think it needs to digest. I would not buy at this level. Maybe put a quarter of your position on, let it come in. It’s been perched here precariously for a while. I think you can go down from here.”
SoFi Technologies, Inc. (NASDAQ:SOFI) provides a range of services, including lending, banking, insurance, and investment opportunities, all accessible through a single online platform. Cramer has not changed his bullish stance on the company as he said in October 2024:
“There are people who genuinely hate this company and it has a very big short position. But how many times have I asked Anthony Noto to come on and defend it? And every time he does and every time he tells a cogent story. So I am not backing away from Noto. I like the stock.
Hey listen, you can say, you know what Cramer, you’re just soft on Noto. Go check my record. Anthony and I would be the first to agree that that has not always been the case, right? Listen to me, this beautiful bull market is littered with analyst downgrades. So a lot of times if you listen to them, the stocks will just end up recovering but without you. Yes, they could go down but then they go back up. My advice is don’t let them go.”
Over the past 12 months, the stock rose more than 82%.
7. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Holders: 32
When a caller asked about Booz Allen Hamilton Holding Corporation (NYSE:BAH), Cramer said:
“I think that there are a lot of people fleeing this stock because of DOGE and I think that they think that this is somehow going to be front and center to the problem. I don’t think that’s the case. I think it’s gonna be the, the big military contractors that they’re really gonna go after. I’m, I’m with you on this one.”
Booz Allen Hamilton (NYSE:BAH) provides consulting services in areas like AI, machine learning, data science, cyber services, and digital solutions to help improve business and mission outcomes.
Polen Capital stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its Q4 2024 investor letter:
“The most significant detractors from relative performance in the quarter were Booz Allen Hamilton Holding Corporation (NYSE:BAH), TopBuild, and Hamilton Lane. Booz Allen Hamilton faced pressure during the period, not due to fundamental business weakness but rather concerns surrounding the Trump administration’s proposed Department of Government Efficiency (DOGE). Led by Elon Musk and former Republican presidential candidate Vivek Ramaswamy, DOGE has been mandated to curtail government spending, including payments to government contractors like Booz Allen Hamilton, which derives nearly 100% of its revenues from the U.S. government. While we view these concerns as more noise than reality, we are monitoring developments closely and will react accordingly.”
6. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 60
A caller called Marriott International, Inc. (NASDAQ:MAR) the top name in lodging and hotel, and asked Cramer about his thoughts. Here’s what Mad Money’s host said:
“They are, and I don’t even mind that the stock is three points off its high. You buy some and then you let it go down. It is at 30 times earnings. That is a high multiple for Marriott but the travel thesis is so strong, you don’t know when you’re gonna get in, but you buy some. You don’t buy all of it right now, you buy some. That’s the prudent way to do it.”
Marriott (NASDAQ:MAR) manages and franchises hotels, residences, timeshares, and yachts globally under a variety of popular brands. About a week ago, discussing the company, Cramer said:
“Marriott, growth hotelier. It heads down after it reports and soars when people realize it is the best hotel chain out there.”
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
Cramer is bullish on Chevron Corporation (NYSE:CVX) due to its CEO, dividend, and cash flow. He commented:
“Well, boy, that’s a great one. I’ll tell you why. Mike Wirth is just, the CEO, he’s committed to that dividend like no other. They’ve got giant cash flow. It is not a problem. It’s one of the safest dividends I know. I bless that investment.”
Chevron (NYSE:CVX) specializes in oil and gas exploration, production, transportation, refining, and the production of renewable fuels and petrochemicals. While Cramer was recently bullish on the company, earlier in January, he cautioned about oil stocks as he stated:
“I don’t wanna own the oils here because who knows if they cave to President Trump and start drilling like mad. I think they’re gonna stay disciplined but if Trump wants more drilling, do you think he’ll pick one of the little guys? No way. He’ll go straight to Exxon and Chevron.”
4. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Cramer commented that despite Palo Alto Networks, Inc. (NASDAQ:PANW) getting a few downgrades, the company will be fine.
“Oh, Palo Alto’s going to be fine. Yeah, there’s a, three analysts who downgraded it. Now, Nikesh Arora… he’s the CEO, he will, I’ll tell you, he’s gonna confound those analysts. There’s no way that guy is gonna take sitting down the three different guys who took it to a sell.”
Palo Alto (NASDAQ:PANW) provides a wide range of cybersecurity solutions, including network and cloud security, virtual firewalls, and tools for threat intelligence, prevention, and response across various platforms and services. Recently, Cramer stated, “CloudFlare and Palo Alto Networks, they’re comeback kids too, every time.”
3. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 64
A caller asked Cramer what they should do about General Motors Company (NYSE:GM) and here’s what he said:
“You own the stock and Mary Barra is better than the four times earnings PE that you’re getting there. I think that’s reflecting every bit of the bad and not a lot of the good. Keep in mind, Ford disappointed again tonight. That could move GM stock down. I would be a buyer.”
General Motors Company (NYSE:GM) designs, manufactures, and sells a variety of vehicles and automobile parts while offering software-driven services and subscriptions. Its vehicle brands include Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling. Hotchkis & Wiley Funds stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:
“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Discussing CrowdStrike Holdings, Inc. (NASDAQ:CRWD) during the episode, Cramer said:
“How about this CrowdStrike? I mean, it burst out today. It’s now past where it was when they had that outage and I say George Kurtz is the real deal.”
CrowdStrike (NASDAQ:CRWD) delivers an extensive cybersecurity platform that offers cloud-based protection for endpoints, cloud workloads, identities, and data, as well as services like threat intelligence, AI-driven automation, and security management. Cramer has praised the company’s CEO before as he recently remarked:
“Now, just over six months ago, a glitch caused by CrowdStrike seemed to stall the whole world. Then the CEO George Kurtz, truly an indefatigable gem, visits 130 companies in a hundred days for a genuine apology tour and all’s forgotten and forgiven. In response, the stock quickly takes out its old high. Can you believe this?”
1. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
With Salesforce, Inc. (NYSE:CRM) reporting its earnings result in a few weeks, a caller asked Cramer if they should buy or wait. Here’s what he said in response:
“I actually think it’s okay. There was a really terrific piece out by Morgan Stanley yesterday about what the clients are doing and how great it’s been, Agentforce has been for them. It’s such a winner that I smiled. I said, oh my god, Marc Benioff is gonna do so well. I think you just stay in the stock and if it gets hit, I would buy more. That’s how much I believe in their Agentforce. It’s terrific…”
Salesforce, Inc. (NYSE:CRM) offers a unified platform for managing sales, customer service, marketing, analytics, and e-commerce, with tools to improve customer experiences and optimize workflows.
While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
