Jim Cramer, host of Mad Money, recently shared his thoughts on the prevailing negative sentiment surrounding data centers and discussed the broader economic implications of Trump’s tariffs, especially their effect on consumer confidence.
“The rebellion against the data center continues. That’s the dominant theme of this market. Don’t anyone tell you otherwise… How do I know this? Aren’t there more cross-currents than that? Oh, of course, there are. I mean there’s the endless tariff Trump beat, one that’s driven stocks lower en masse incredibly.”
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He noted that aside from the Dow, no major index, including the S&P 500, the Nasdaq, the transport sector, or even the small-cap Russell 2000, has managed to gain since Trump’s inauguration. In fact, some of these indices, like the Russell, have been hit particularly hard. Cramer commented on the almost daily barrage of new tariffs, saying, “It feels like we get a new tariff for every day, doesn’t it?”
“Perhaps there’s a sense that the Trump bump is over. We know that when he was elected, the business world cheered with both their voices and their dollars. It was spontaneous.”
The optimism, he noted, led to a surge in stock prices across various sectors. However, after Trump entered the second month of his presidency, some business leaders started to question the turmoil coming out of Washington. Cramer pointed out that this growing uncertainty is contributing to a more cautious outlook in the business world.
He highlighted that the much-anticipated tax cuts have not materialized yet, with instead, a constant stream of confusing and unpredictable tariff-related talk coming from the administration. Cramer went on to explain that the uncertain environment is making people feel uneasy. He referenced an indicator from the University of Michigan’s consumer sentiment report, which was noticeably more negative than anticipated.
“One of the indicators we got this week, the University of Michigan consumer sentiment reading, was appreciably more negative than we expected. That’s a read of what I’m talking about. We know this economy runs on the consumer. Any sign of a real slowdown based on consumer confidence could be a shocker.”
7 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 25. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7 Stocks on Jim Cramer’s Radar
7. WeRide Inc. (NASDAQ:WRD)
Number of Hedge Fund Holders: 2
When Cramer was asked about WeRide Inc. (NASDAQ:WRD), he replied:
“Oh my god, WeRide. Oh geez. You cut me to the quick. I don’t want to go, look, I like Alibaba. That was the only Chinese stock I like and it’s been absolutely terrific.”
WeRide (NASDAQ:WRD) is an investment holding company that provides autonomous driving solutions for mobility, logistics, and sanitation industries in China. Its offerings include robotaxi, robobus, robovan, robosweeper, advanced driver-assistance systems, and the WeRide Go ride-hailing app. On February 17, Morgan Stanley reported that the company stock surged on February 14, driven by the market’s enthusiasm following Nvidia’s investment in the company.
Nvidia’s latest quarterly filing disclosed a holding of 1.74 billion shares in WeRide, attracting significant positive attention to the company, as noted by the analyst in a research report. Morgan Stanley attributes the surge, along with factors like low liquidity and the potential involvement of quant funds, to the dramatic movement in WeRide’s (NASDAQ:WRD) stock, which saw a rise of up to 146% in a single trading day.
The firm views the rally as a sign of growing investor interest in self-driving technology and highlights the crucial role of strategic partnerships in the developing robotaxi market. According to Morgan Stanley, Chinese robotaxi solution and hardware providers like WeRide (NASDAQ:WRD), Hesai, and Zeekr will become competitive options as global companies look to build their robotaxi fleets. The firm maintained an Overweight rating on the stock with a $23 price target.
6. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 29
Enterprise Products Partners L.P. (NYSE:EPD) provides midstream energy services, such as the transportation, storage, and processing of natural gas, crude oil, NGLs, petrochemicals, and refined products. When asked about the company, Cramer said, “Double down on it.”
Cramer’s bullishness on Enterprise Products Partners (NYSE:EPD) has not wavered as he expressed a similar sentiment in January:
“Oh my God, it’s my absolute, absolute favorite of the group. I think you just gotta, just stand there and buy it. It’s cheap. It’s got a good yield and its business is fabulous. Thank you Rusty Braziel for pointing that one out to me a long time ago.”
5. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 33
When a caller inquired about The Wendy’s Company (NASDAQ:WEN), Cramer steered them toward Texas Roadhouse.
“Wendy’s? No. You’re gonna sell Wendy’s tomorrow and you’re going to buy Texas Roadhouse because that’s the one. We had them on Friday. They’re monster good. We bought it for the Charitable Trust. You’re buying, you’re buying TXRH tomorrow.”
Wendy’s (NASDAQ:WEN) runs and franchises fast-food restaurants known for their hamburgers, in addition to developing real estate and overseeing property leases. The company focuses on restaurant management and franchising. Cramer has been wary of the company for some time now as he stated in January:
“I’m worried about Wendy’s. That should not have a 7% yield. That to me says something may be wrong here. McDonald’s is kicking butt. I, I saw an upgrade today for Burger King… Alright, I’ve gotta take a quick survey and I gotta tell you, you know what, Wendy’s, no. They have not demonstrated that they can pull it off in a very competitive world.”
4. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 34
A caller inquired if they should buy, sell, or hold Uranium Energy Corp. (NYSE:UEC), and here’s what Cramer had to say:
“No, I, I, you know, I think that uranium, we all felt that there was so much business from the data centers but you know what? You’re in the one that is for long-term good. That’s the one you’re okay in… So I’m not gonna tell you to sell it down here. Can’t tell you to buy it though.”
Uranium Energy (NYSE:UEC) is involved in the exploration, extraction, and processing of uranium and titanium concentrates in various regions. While Cramer refrained from suggesting to buy UEC during the episode, in October 2024, he was enthusiastic about the stock as he stated:
“Yeah, UEC’s the real deal. You gotta double it, doesn’t matter, it’s going higher. We need more uranium I think it’s a great situation, I recommend it to all my friends… I think it’s terrific.”
3. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 45
A caller asked if they should buy, sell, or hold Ford Motor Company (NYSE:F) and then buy Rivian or Tesla. Here’s what Cramer said in reply:
“No, no. Rivian, no, no… Tesla I actually like down here because it’s a tech company. Rivian, I, it needs capital. Ford, no, you don’t want to own Ford. I, I feel terrible about saying that. I have a Ford and, but it’s, it’s not where you want to be. You got to be in a place where I feel confident that the earnings are going to go up or the sales are going up and I don’t feel that way with Ford, I’m sorry.”
Ford (NYSE:F) specializes in designing, manufacturing, and servicing a wide range of vehicles, such as trucks, cars, vans, SUVs, and luxury models under the Lincoln brand. Over the past 12 months, Ford stock went down more than 20%, while RIVN stock gained over 6%, and TSLA stock climbed over 45%.
2. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 92
Vertiv Holdings Co (NYSE:VRT) was mentioned during the episode and here’s what Cramer had to say:
“We’re all worried about Nvidia. If tomorrow Nvidia pulls the rug and says things aren’t that good then Vertiv goes down 10% and that’s when we buy it. Let’s wait till they give us the all-clear or not. Either way, it’s a clearing event. That’s… our plan.”
Vertiv (NYSE:VRT) specializes in providing and supporting critical digital infrastructure solutions and lifecycle services for data centers, communication networks, as well as various commercial and industrial sectors.
Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q4 2024 investor letter:
“Vertiv Holdings Co (NYSE:VRT), a critical digital infrastructure solutions provider for data centers, continued to perform well. With a leading market share in power and cooling applications for data centers, Vertiv is seen as a prime beneficiary of the AI-related data center buildout. At its November Analyst Day, Vertiv raised organic sales guidance to 12% to 14% CAGR for the next five years and gave guidance of 16% to 18% organic revenue growth for 2025. Vertiv also increased its target adjusted operating profit margin from 20% to 25%. While impressive on their own, these forecasts can prove conservative we think. With the stock up 141% in 2024, we have been trimming the stock into strength to manage position size but hold a large stake as we believe in its growth and that the stock is reasonably valued even after great appreciation the last two years.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 166
Cramer suggested buying a little bit of Uber Technologies, Inc. (NYSE:UBER) now and more when it pulls back.
“I like Uber very much. Now, I was there when they reported and it was incredible. The stock went down and I called out the people who were selling it as morons. Now, look, I think it can, look, I mean it’s at $74. Could it go back to $68? Absolutely. So… here’s what we’re gonna do, we’ll buy a little bit tomorrow, and then if it goes to $68, we’ll buy a little bit more. Okay? That’s the game plan.”
Uber Technologies, Inc. (NYSE:UBER) develops and manages technology that facilitates mobility, delivery, and freight services, linking users to transportation options, assisting retailers with deliveries, and running a digital logistics platform for both shippers and carriers. In early February, discussing experts’ sentiment toward the company stock, Cramer said:
“Same thing with Uber, and you see, you see Uber won the war of pickup and deliver. The numbers reported at this point were extraordinary, but the experts found a line or two they didn’t like. Next thing you know, they kick it to the curb and you get an opportunity to buy some at a discount. I am confident about this one after interviewing CEO Dara Khosrowshahi this very morning on Squawk on the Street… I think this is a good one.”
While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) 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 time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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