This article presents an overview of Jim Cramer and Ken Fisher Love These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer and Ken Fisher Love These 10 Stocks.
5. Apple Inc (NASDAQ:AAPL)
Ken Fisher’s Stake: $9,582,956,861
Ken Fisher has been holding onto Apple Inc (NASDAQ:AAPL) since 2017. As of the end of 2023, the billionaire had a $10.5 billion stake in Apple Inc (NASDAQ:AAPL), which makes the stock his biggest holding. Apple Inc (NASDAQ:AAPL) shares have disappointed many recently as concerns regarding iPhone sales growth and lack of AI-catalysts haunt the stock. However, Cramer believes Apple Inc (NASDAQ:AAPL) is a stock to hold, not trade. Recently, Cramer talked about a Wall Street Journal report talking about Apple Inc (NASDAQ:AAPL) plans to develop AI chips. Cramer quoted WSJ and said that these chips would be “inference” chips for data centers to run AI models instead of training them. He said Tim Cook had told him about Apple Inc’s (NASDAQ:AAPL) “AI offense” plans but “nobody seems to care until they see it.”
The London Company Large Cap Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:
“Reduced: Apple Inc. (NASDAQ:AAPL) – Reduction reflects strong performance in 2023 and resulting elevated valuation. We believe the outlook for AAPL remains strong with slow growth in iPhone (now #1 global market share) and faster growth in the higher margin services business. R&D will continue to drive new products and AAPL now has over 2 billion installed devices around the world. While near term earnings expectations appear reasonable, we felt it was prudent to reduce the position size based on risks to valuation.”
4. Alphabet Inc Class C (NASDAQ:GOOG)
Ken Fisher’s Stake: $6,991,843,449
Jim Cramer recently praised Alphabet Inc Class C’s (NASDAQ:GOOG) earnings and reminded investors his advice where he said you should buy the stock on “any weakness.” Cramer said the latest dip in the stock price gave investors a chance to “pounce.” He also thinks Alphabet Inc Class C (NASDAQ:GOOG) is one of the most undervalued big tech stocks.
Palm Valley Capital Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Governments have various irons in the fire for curbing (commandeering?) the power of tech titans, with the European Union rolling out the Digital Markets Act, the Federal Trade Commission suing Amazon for illegally using monopoly power, and the DOJ lawsuit against Alphabet Inc. (NASDAQ:GOOG)’s advertising business going to trial in September.
Furthermore, the dominant technology enterprises are not immune from shooting themselves in the foot. Google’s botched launch of its AI model, Gemini, shows the risk of having too much money. You lose discipline. A Pirate Wires exposé into the firm’s culture revealed that employees went to extreme lengths to intentionally degrade the quality of the AI engine’s output for ideological reasons. Try that as a small business! See how far you make it…” (Click here to read the full text)
3. NVIDIA Corp (NASDAQ:NVDA)
Ken Fisher’s Stake: $8,252,596,105
Cramer has been reiterating his bullish take on NVIDIA Corp (NASDAQ:NVDA), albeit with a rather dampened mood and enthusiasm. Recently, Cramer said that he still believes NVIDIA Corp (NASDAQ:NVDA) is a stock to hold, not trade. Click to read Cramer’ latest thoughts on Nvidia here.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).
Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
2. Amazon.com Inc (NASDAQ:AMZN)
Ken Fisher’s Stake: $7,678,116,830
Jim Cramer simply loved Amazon.com Inc’s (NASDAQ:AMZN) latest quarter in which Amazon.com Inc (NASDAQ:AMZN) threw it out of the park with its AWS business, in addition to other segments. Cramer thinks it was an “absolutely tremendous, lights-out” quarter.
“Amazon is at the top of the class when it comes to generative AI. It has so much going for it that it’s too long to list here,” Cramer said.
Ken Fisher’s fund, as of the end of 2023, owns a $7 billion stake in Amazon.com Inc (NASDAQ:AMZN).
Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of stabilization of the company’s cloud computing segment and increased confidence the company would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.”
1. Microsoft Corp (NASDAQ:MSFT)
Ken Fisher’s Stake: $10,908,153,229
Cramer is a big believer in Microsoft Corp (NASDAQ:MSFT) because of its AI potential. Recently he said there is “nothing better than Microsoft right now.” He also said you’ve got to “check that box” as his Charitable Trust has by owning a stake in Microsoft Corp (NASDAQ:MSFT). Cramer was surprised to see the stock’s underperformance after its earnings.
Recently, The Information reported that Microsoft Corp (NASDAQ:MSFT) is working on a new AI-model to compete with Google. This project is headed by Mustafa Suleyman, who co-founded DeepMind. Mustafa Suleyman was hired by Microsoft Corp (NASDAQ:MSFT) in March to run its new consumer AI unit.
Ithaka US Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its first quarter 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated based on excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI, which will be through both Azure and Microsoft Copilot, the company’s new GenAI personal assistant.”
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