On Monday, April 7th, Jim Cramer opened the Mad Money episode with a message of calm in the midst of chaos. After nine straight lower openings and another bruising session for stocks, Cramer made it clear that while the pain is real. He acknowledged the likelihood of a recession but rejected the notion that we were on the brink of another global financial collapse, saying:
“Do we have a problem that’s systemic meaning there’s actual weakness in our a rot in our institutions that can’t easily be undone? Now my partner David Faber and I discussed this very point this morning and we agreed that we needed to take the financial crisis scenario off the table because our institutions are strong, and we don’t believe that the whole economic system is in jeopardy. We don’t believe that major banks will fail, we definitely don’t like this situation for heaven’s sake. It’s likely we’re headed for a recession because of the president’s ill-advised plans, but we’ll pull out of it one way or another. It’s not going to be the global financial crisis number two.”
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Rather than being caused by inflation, interest rates, or even earnings weakness, Cramer insisted the market’s decline was driven by leadership decisions. He called the downturn “man-made,” emphasizing that it could be reversed just as easily as it began, if the administration changed course:
“Then we get back to the approximate cause of the decline: it’s all man-made! Wall Street’s terrified by the tariffs but we have an arbitrary material president who can declare victory, roll these tariffs back with the stroke of [inaudible] and then where would we be? We would have bought nothing. And at some point, the White House won’t be able to tolerate a crashing stock market.”
What concerned Cramer most was the deeper agenda behind the tariffs. In his view, the administration wasn’t just trying to rebalance trade but to reverse decades of globalization, forcing companies to return manufacturing to U.S. soil — even if that meant permanent economic disruption.
“The job isn’t just to coerce China; it’s to cause US manufacturers to come back here. Away from Vietnam, that’s why Vietnam had that huge tariff. Those are two agenda items that not just one that’s important it means there’s no possible negotiation because that would encourage companies not to come back here. Sure, the tariffs could raise some revenue or promote domestic manufacturing, but they can’t reverse history, and Trump wants to reverse history. It’s a tall order – an ill-advised one – he wants to do it quickly.”
Finally, Cramer laid out the daunting checklist of what would need to happen for the current strategy to succeed:
“There are many things that have to go right for Trump to successfully reorder the global economy in order to bring back domestic manufacturing and bring China to its knees. First the high tariffs can’t cause a spike in inflation or else the Fed won’t be able to bail us out with rate cuts. Second, he has to negotiate new trade deals very quickly for congressional members who are supposed to control the tariffs wake up. The lower the market goes the more likely the Republicans in Congress actually throw the president’s agenda under the bus. Third, he has to do it without causing a big spike in unemployment. I think if he does get all three, he isn’t going to press his bet with these tariffs, instead, he’ll find some reason to declare victory and roll them back. which is why the market didn’t collapse today.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 7. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
Jim Cramer Calls Market Decline ‘Man-Made’ and Breaks Down 15 Stocks
15. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 49
A caller from Texas asked Jim whether the market was getting it wrong on Cleveland-Cliffs Inc. (NYSE:CLF), especially given the recent 30% drop. The caller noted that Trump’s steel tariffs should theoretically boost demand for domestic producers like CLF. Here’s what Jim Cramer replied with:
“I think the problem [with] Cleveland- it’s two problems, one is the balance sheet’s not that good, and two, there’s got to be demand. If the auto companies are really cutting back – and I think you’re gonna have to after the initial spur – that is going to make it so that the the numbers have to go lower. If the numbers go lower, Cleveland Cliffs and the stock’s going to go to 65.”
In February this year, Jim Cramer expressed some concerns again about Cleveland-Cliffs Inc. (NYSE:CLF) and the company’s exposure to Mexican imports, saying:
“I also care about Cleveland-Cliffs so when it reports as this steel company has been beaten up by cheap exports from China via Mexico transshipment, they call it, I worry about how it’s doing, whether the US can actually stop these darn subsidized transshipped imports.”
14. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 69
A caller speculated that the macro uncertainty from tariffs might boost demand for Bitcoin and asked whether Coinbase Global, Inc. (NASDAQ:COIN) might benefit. Cramer used the opportunity to clarify his view on crypto exposure, saying:
“Not a bad idea, Bitcoin’s down a lot, but why don’t you do this, why don’t you buy Bitcoin? Why buy Coinbase? You can just go buy Bitcoin. And I think that’s a good idea all the way down here. I prefer that to actually buying Coinbase.”
Patient Capital Management stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like Sofi Technologies (SOFI) and Coinbase Global, Inc. (NASDAQ:COIN) during the year. Both companies rebounded strongly in the fourth quarter. We believe Coinbase is building the platform for the crypto ecosystem. Certain recent advances (wallet, base improvements, USD Coin) could cause an adoption tipping point. We like that Coinbase continues to widen its moat by persistently investing in innovation.”
13. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 56
A caller asked Jim Cramer whether Target Corporation (NYSE:TGT) was a good value play, noting it was trading at its March 2020 levels with a lower P/E compared to Walmart. Cramer responded by examining its valuation and dividend yield:
“Okay it’s really interesting because it is a 10 times earnings and it does trade with a 4.75% yield. I think if you’re ever going to buy it, you would probably have to buy it right here frankly. It is cheap historically, how about that?”
Carillon Eagle Growth & Income Fund stated the following regarding Target Corporation (NYSE:TGT) in its Q4 2024 investor letter:
“Target missed earnings dramatically. The company’s sales were positive, but margins were disappointing due to higher expenses. While traffic was up, prices were down; consumers continued to seek value and shop during promotional periods. A one-time decision to re-route inventory ahead of the East Coast port strike also explains a large part of the company’s performance.”
12. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 31
Levi Strauss & Co. (NYSE:LEVI) had just reported earnings and Cramer invited CEO Michelle Gass onto the show. He opened by defending the strength of Levi’s quarter, especially against market confusion about revenue performance amid global tariff uncertainty. Here are his thoughts on the stock:
“Levi Strauss is a great American company that should not have been able to deliver such a great number if things are so bad. […] We had a strong quarter, a very strong beat on EPS […] All regions around the world and all categories were positive this quarter, and it is a testament and a proof point that these strategies are working.”
Here’s what Jim Cramer said about Levi Strauss & Co. (NYSE:LEVI) a few days before the company’s CEO came on the show, in anticipation of its earnings report:
“We will soon find out what CEOs can do to deal with tariffs because Levi Strauss reports on Monday and it manufactures jeans all over the map from Japan and Mexico, Turkey, other places in Asia.
Levi’s offered some weaker guidance last quarter and it got hammered. Apparel’s been a mixed bag, people. The last company that spoke in the space, we just did a piece on, PVH, said very good things. Calvin Klein, Tommy Hilfiger, are doing well. Maybe Levi Strauss made the quarter too.”
11. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
As part of his breakdown of the Magnificent 7 stocks, Jim Cramer described Amazon.com Inc. (NASDAQ:AMZN) as one of the few remaining standouts. He argued that Amazon’s pricing power, scale, and diversified revenue streams make it well-positioned to handle rising tariffs and supply chain disruptions.
“Right on top of the list [of the magnificent 7] is Amazon. The main knock against Amazon is that the tariffs will crush their core e-commerce business. After all, most of this stuff is made overseas and it’s about to get a lot more expensive. But I think they become more of a consumer staples business like Walmart, because they sell so many necessities at the best prices. Plus, all retailers have to deal with the tariff problem. Question is who has the scale to lean on their suppliers and force them to eat the cost of the tariffs? Nobody has more bargaining power than Amazon. It has all the cards. […]
Keep in mind that this company has a lot going for it, from the sticky prime subscription business that engenders customer loyalty, to the Amazon web services business that has enough growth to offset any weakness in retail with excellent margins. Amazon currently trades at around 25 times this year’s earnings estimates; about half of its historical valuation. That makes it a steal frankly.”
Alphyn Capital Management stated the following regarding Amazon.com Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon continues to demonstrate how a massive balance sheet, combined with a relentless focus on customer satisfaction and first-principles thinking, can drive sustainable cash flow growth. Recent earnings highlight strong execution across multiple fronts. At its core, Amazon pursues what customers value most: faster, cheaper delivery. This quarter, 40 million users enjoyed free same-day shipping, reflecting management’s sizable investments in regional logistics. These moves have reduced service costs, supported margin expansion, and set the stage for continued improvements with further robotics integration.
Amazon has now achieved margin gains in its international operations, making that segment profitable. By emphasizing improvements on the “intake” side of the supply chain and leveraging regional logistics, the company is laying the groundwork for more efficiencies ahead. Meanwhile, Amazon’s advertising business saw $14.3 billion in revenue, up 19% year-over-year, a clear example of the company’s success in forging new, high-margin revenue streams. Amazon Web Services and AI-related offerings also grew 19%, pushing quarterly revenues near $30 billion. Management spent $75 billion in capex this year, mainly for AI infrastructure, which will increase to $90 billion next year. While those numbers look daunting, I have confidence in the company’s ability to balance aggressive growth with disciplined returns, given Amazon’s decades-long track record of smart capital allocation. Amazon has a ruthless focus on “what works,” for example, while shutting down its project (with JP Morgan and Berkshire) to change healthcare service proved too complex, it pivoted to high-velocity pharmacy deliveries, leveraging its logistics expertise.
Of course, AI is all the rage right now, and we will eventually find out how much of this is hype. For now, Amazon’s AI initiatives are already producing multibillion-dollar revenues and growing at triple the rate of AWS when it was at a similar stage.”
10. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
While analyzing the Magnificent Seven stocks, Jim Cramer identified Meta Platforms Inc. (NASDAQ:META) as one of the top-tier names in the group. He noted that while a recession or tariff retaliation could impact the company, most of the negatives were already priced in, and its AI initiatives remained underappreciated. Here’s what he said:
“Meta Platforms looks like a relative winner from tariffs because they sell advertising so there’s little direct impact. Now that could change if Meta becomes the target of European tariff retaliation – always a possibility – or if the trade war throws our economy in a recession too, another real possibility. But with Meta stock now down more than 30% from its highs two months ago I think many of these negatives including a potentially soft advertising market are already baked in. Plus, Meta is not getting enough credit for its AI growth opportunities. Stock sells for just under 20 times this year’s earnings estimate. It sells below the average stock? Not much of a discount to historical valuation but it’s one of the highest quality stories in the formerly Magnificent 7.”
Nightview Capital stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta’s platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business.
The success of Ray-Ban AI glasses and progress on Project Orion signal Meta’s growing influence in smart wearables, positioning it as a leader in the next wave of consumer technology.
Meta’s unparalleled reach and advertising expertise, combined with AI-driven product innovation, provide a durable competitive moat. As the company continues to optimize monetization and invest in next-generation technologies, it is at the forefront of growth in the evolving digital advertising landscape.”
9. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Jim Cramer included Microsoft Corporation (NASDAQ:MSFT) in his top tier of the Magnificent Seven, citing its durable business and essential software offerings. However, he expressed concern about Microsoft’s AI execution and recent forecast downgrades.
“Microsoft has one of the most durable businesses in the group. Its core office software remains essential in the workplace and its large cloud business adds to the company’s overall growth. That’s why Microsoft’s only down about 24% from its highs, best performance of the group.
But on the negative side the company seems to be a bit lost in this AI front. That co-pilot AI tool; I’m calling it somewhat of a bus. And its weird slow motion break up with Open AI, what’s that about? But at 25; 27 times this year’s earnings I think you can justify picking some Microsoft up here again.”
Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Microsoft is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, Microsoft delivered better-than-expected fiscal first-quarter revenues, beating analyst estimates across all three segments. In the Intelligent Cloud business, Azure revenue grew 34% yearover-year, slightly above consensus, with AI Services contributing 12% to Azure’s growth, up from 11% in the previous quarter, as demand for AI continues to outpace capacity. However, shares declined after management signaled a potential deceleration in Azure growth for the next quarter and highlighted a negative earnings impact from OpenAI-related losses.
Additionally, concerns over significantly increased AI-related capital expenditures (CapEx) raised questions about short-term profitability despite the long-term growth potential. While these near-term challenges led to shares detracting from performance for the quarter, we remain confident in Microsoft’s ability to maintain its leadership in AI.”
8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Cramer discussed NVIDIA Corporation (NASDAQ:NVDA) in the context of its recent selloff, noting how investor sentiment toward AI stocks has reversed sharply. He categorized Nvidia in his “second tier” of the Magnificent 7 stocks. However, he defended NVIDIA’s long-term value and financial strength, saying:
“NVIDIA is down 36% from its highs. Just 3 weeks ago for instance, that Nvidia GTC event occurred where there was no sign at all that this AI theme was slowing but investors want to throw in the towel so there’s just been a freight train of selling in anything AI. Maybe you just have to step back and let the selling play out for Nvidia. Let me give you some good news, it sells for just 21 times this year’s earnings. This is the highest quality company in the world. It’s also less than half its average valuation over the past 5 years; that’s cold comfort. I think the stock will fly.”
RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVDA was a top contributor in the fourth quarter following blowout 1Q results and guidance driven by strong data center sales (+427% year-over-year). The company reported revenue of $26 billion, up 262% year-over-year, and EPS of $6.12, up 462% year-over-year and 9% ahead of expectations. Revenue guidance for 2Q of $28 billion was 5% above very high expectations. The artificial intelligence arms race, kicked off by ChatGPT and Alphabet’s Bard, among others, has generated tremendous demand for Nvidia’s next generation graphic processors.
NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following recent results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “a trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Jim Cramer admitted he was puzzled by Apple Inc. (NASDAQ:AAPL)’s position during the ongoing tariff war. He expressed concern over rising costs from overseas manufacturing and questioned whether the company or its partners would absorb the financial impact.
“Boy I don’t know… These tariffs are going to be a killer. According to an analysis at the Wall Street Journal, Trump’s tariffs will take the cost of an iPhone 16 Pro from 550 to around 850, and that’s not counting the new tariffs he threatened to unleash on China today. I think the real costs are lower because of Apple’s manufacturing shift to India, but even if it only goes up by half that amount, it’s still a huge increase, although hopefully the companies will eat a chunk of it. […]
Will Apple be able to pass that additional cost onto customers and make its products even more expensive, or will it eat the cost crushing its margins? That’s a lose-lose scenario. Right now Apple’s caught in a crossfire of a trade war between the US and China, which is not a good place to be. It’s probably the toughest one to really figure out what to do with.”
Jim Cramer recently discussed Apple Inc. (NASDAQ:AAPL)’s future in regards to its manufacturing and the uncertainty around tariffs. Here’s his recent input:
“[talking about bringing production back to the U.S.] And I think for the point of view of our viewers, they have to understand that Apple is the paradigm of what Navarro is trying to fix. They bring it back here, they are fine. If they don’t; look out. They are not going to be able to make their numbers.”
6. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 174
Jim Cramer explained why his Charitable Trust had fully exited its position in Alphabet Inc. (NASDAQ:GOOGL) and categorized the stock in the bottom tier of the Magnificent 7. He cited concerns about generative AI threatening Google’s core search business and broader macro risks tied to advertising. He said the following:
“The bottom tier of the Magnificent 7 names start with Alphabet stock that we just sold out of entirely for our charitable trust. My main concern, I think generative AI may pose an existential threat to their core search business. I think many younger people are bypassing Google entirely and going straight to ChatGPT. Google Search is a $200 billion a year business! Plus, if the tariffs cause a recession, this is another advertising-based business that will get crushed. I think it’s more vulnerable than Meta.
Now there are still plenty of reasons to like Alphabet. Youtube’s arguably the most important force in media at this point. The Google Cloud Platform is a top three or four offering in the cloud space and still growing nicely. Best of all, Alphabet now trades at just 16 times this year’s earnings. That’s a big discount to historical valuation. I just think it’s too risky.”
Jim Cramer said something similar about Alphabet Inc. (NASDAQ:GOOGL) on April 1st, after a caller asked him why he doesn’t consider the company a buy anymore:
“I’ve left Google now. I didn’t leave it at the right price, I know that, but I left it because I don’t use Google other than for like the most simple historical [queries], because there’s other ones. I won’t go to Grok to find whether Hoover was president; I still use google for that. I just find myself using so many other things that I know I can’t be alone, and that’s what I worry about. I know YouTube’s doing well, though.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Cramer placed Tesla, Inc. (NASDAQ:TSLA) in the bottom tier of the Magnificent Seven and questioned its valuation and fundamentals. He pointed to weakening auto demand, tariffs, and Elon Musk’s polarizing persona as key risks. Here are Cramer’s thoughts:
“Finally there’s Tesla, which has been cut in half from his highs. At a very high level the bull case here is that the president’s close relationship with Elon Musk should give the company major advantages as it moves into self-driving cars or humanoid robots. But man, Tesla’s core auto business has collapsed, and the tariffs will be terrible for them. Musk’s persona is a big negative for huge swath of customers or potential customers. Worse, Tesla is still the most expensive stock in the Magnificent 7 by a large margin, trading at 87 times this year’s earnings estimates. And I’m not even sure we can trust those estimates because their auto business is in such bad shape.”
ClearBridge Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:
“Our active underweight to the Magnificent Seven added more than 100 basis points to relative returns for the quarter, with underweights to EV maker Tesla, Inc. (NASDAQ:TSLA) and Google parent Alphabet being among the largest relative contributors. We added to both positions, taking advantage of what we view as short-term weakness as Alphabet missed high expectations for cloud revenue growth in its latest quarter, while Tesla worked through negative sentiment over CEO Elon Musk’s role in the Trump administration.”
4. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
A caller asked about Micron Technology Inc. (NASDAQ:MU) amid recent weakness in chip stocks. Cramer highlighted the company’s strength in high-bandwidth memory and said it looked undervalued, even if estimates were cut.
“They have this high bandwidth business that is just on fire… The stock has come down to the point where it is selling at like a steel company—actually below a steel company… Even if they cut estimates big, I don’t think there’s a lot of downside and there will be upside… I’m a buyer of Micron here.”
Jim Cramer has been a fan of the memory chip producer for a long time. Here’s what he said about Micron Technology Inc. (NASDAQ:MU) on the 24th of March:
“Micron, okay, it’s up nine in the evening, it’s down nine in the morning. What happened during that period? I don’t know, people watched March Madness?. . . Nothing happened. Tech, and I’m saying that could reverse. Micron is an inexpensive stock doing well. I’m using Micron please as a metaphor, don’t try to pin me down. . .”
3. Aurora Innovation Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 27
During the Lightning Round, a caller asked Jim Cramer about Aurora Innovation Inc. (NASDAQ:AUR), but Cramer dismissed the stock outright, emphasizing the risks of investing in unprofitable names during a potential recession, saying the following:
“You know it’s not making money and if we have a recession all those companies don’t make money, they lose you money. So I’m not going to let you be in that one.”
Aurora Innovation Inc. (NASDAQ:AUR) focuses on autonomous driving technology and is developing a commercial-ready self-driving trucking platform called Aurora Driver, which is already being tested with partners like FedEx and Uber Freight. Here’s what Cramer said about the company back in January:
“We have companies that were small that are suddenly large, and what happened? Well, they got a call from Jensen Huang and they became partners. Aurora Innovation, self-driving technology. AUR, here’s a stock that’s up 36%, the other day it was Cerence, Cerence is another company that’s run by Brian Krzanich, who used to run Intel and CDK which has got technology for autos. And they’re the one, you’d speak to, I think some people think it’s better than Siri in a car. Well you know open my car door, turn my heater on. So anybody, we saw Micron this is back to that touched by an angel, and the angel is the man in the sparkling leather jacket.”
2. Copart Inc. (NASDAQ:CPRT)
Number of Hedge Fund Holders: 53
A caller shared that a friend had introduced him to Copart Inc. (NASDAQ:CPRT) during the COVID-19 dip, and it had since been a strong performer. Cramer enthusiastically agreed and praised the company’s business model, saying:
“Oh my god I love that! Salvage vehicles. No, I’m not kidding, this is a very solid company, but look, it’s got a Carvana aspect to it, I like that too.”
Copart Inc. (NASDAQ:CPRT) operates an online platform for auctioning and remarketing vehicles, primarily those damaged in accidents or declared total losses by insurance companies. The company has a dominant position in the salvage vehicle market, benefiting from a capital-light model and strong pricing power.
1. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
A caller asked Jim Cramer about Li Auto Inc. (NASDAQ:LI), curious if the recent decline presented a buying opportunity. Cramer was quick to dismiss the stock, citing repeated earnings misses.
“No no, they’ve missed too many times. I’m going to have to say no to that one, even though it’s come down a lot. It had a nice bounce today but I’m going to say forget about it.”
Li Auto Inc. (NASDAQ:LI) is a Chinese electric vehicle manufacturer focused on extended-range EVs that combine battery power with internal combustion for longer driving distance. The company is part of China’s fast-growing new energy vehicle (NEV) sector but faces intense competition from domestic rivals like Nio and BYD.
LI is a stock Jim Cramer recently discussed. While we acknowledge the potential of LI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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