Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
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He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. 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.
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Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024
18. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Cramer highlighted that under the leadership of its CEO Rene Haas, Arm Holdings plc (NASDAQ:ARM) stock has roared and its market cap reached $100 billion in 2024.
“We are having a tough time getting IPOs to market, which means the ones we do get tend to be priced too low thanks to a paucity of buyers and that’s what I think happened with the stock of Arm Holdings, the semiconductor architecture company that’s partnered with Nvidia for all sorts of gizmos and it’s all over the cell phone and servers too. Arm’s growing incredibly fast and CEO Rene Haas has steered the company’s stock to an 87% return, joining the hundred billion dollar pantheon.”
Arm (NASDAQ:ARM), a key player in the semiconductor industry, specializes in designing and licensing central processing unit technology and related components. Rather than manufacturing chips itself, it generates revenue through licensing its processor designs and collecting royalty fees from companies that integrate its technology into their products. With the rise of advanced technologies like AI, the company expects to see increased demand for its chip architectures, as the complexity of chips grows to accommodate these emerging technologies.
In line with this trend, the company reported significant growth in its licensing business. By the end of the second quarter of fiscal 2025, the company had secured 39 Arm Total Access licenses, up from 33 in the previous quarter. Additionally, the number of Arm Flexible Access licensees increased from 241 to 269, reflecting a broader adoption of its technology. This expansion in licenses directly correlates with increased royalty revenue, as the chips created using these licenses are sold and used in a variety of devices and systems.
Earlier it was disclosed that Nvidia’s largest investment of $147.3 million was in Arm (NASDAQ:ARM), which it failed to acquire due to an antitrust issue two years ago. Additionally, CEO Rene Haas, highlighted a shift in the company’s business model, explaining that in the past, it would have seemed unrealistic for Arm to charge $100 per system-on-a-chip (SoC).
However, with its pricing now set between 50 cents and $1 per core, Arm is generating over $100 per SoC when multiple cores are included. Haas pointed out that this new pricing structure reflects the growing value of Arm’s technology in the burgeoning AI and cloud computing sectors.
17. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 43
Cramer noted that Palantir Technologies Inc. (NYSE:PLTR) is favored due to its high-profile government contracts and the buyers’ belief in it to reshape the U.S. defense budget.
“Next up is an enterprise software company, Palantir, which exploded on the scene this year with some big contracts and some big growth. Palantir came public via direct listing in 2020. It kind of hung out doing nothing until its sales finally took off and then man, this thing was just a rocket ship. Palantir is the brains behind much of the military that we don’t know about.
They’ve been rallying against the big five military defense contractors. They don’t like that gang. They think it frustrates everybody else. The firm uses advanced data analysis and artificial intelligence to help the Pentagon see patterns, process data… Again though, I think Palantir’s loved because it’s trying to upend the defense department, potentially saving tens of billions of dollars and saving the lives of those who might be on the front line such as precious pilots in very expensive jets. Buyers think that Palantir will reinvent our entire defense budget, which is entirely possible because these guys are tight with President-elect Trump.”
Palantir (NYSE:PLTR) is a developer of advanced software platforms and is known for its work with government agencies. Earlier in the year, it secured a $480 million contract with the U.S. Department of Defense to develop the Maven Smart System, set to be completed by 2029. In November, it also partnered with Anthropic and AWS to offer U.S. agencies access to Claude AI models, enhancing data processing and decision-making capabilities.
More recently, on December 9, the company expanded its contract with the U.S. Special Operations Command (USSOCOM) with a one-year, $36.8 million deal to support the Mission Command System (MCS) and enhance technology for U.S. Special Operations Forces globally. The deal includes deploying AI capabilities and fast-tracking software deployment using Palantir’s Ontology Software Development Kit.
Additionally, on December 6, Palantir (NYSE:PLTR) announced that the company and Anduril Industries are launching a consortium to help the U.S. lead in artificial intelligence, focusing on developing infrastructure to transform AI advancements into next-generation military and security capabilities.
The partnership aims to address two main challenges: data readiness and processing data at scale. To tackle the latter, they will use Palantir’s AI Platform (AIP) for cloud-based data management and AI development, meeting both commercial and national security needs.
16. Automatic Data Processing, Inc. (NASDAQ:ADP)
Number of Hedge Fund Holders: 49
Discussing Automatic Data Processing, Inc. (NASDAQ:ADP), Cramer stated:
“Now it was a big cluster with gains in the mid-fifties… Then there’s Automatic Data Processing. By the way, that’s a company synonymous with growing payrolls. Isn’t that an oddity when the Fed’s cutting rates?”
Automatic Data Processing (NASDAQ:ADP) provides cloud-based human capital management solutions, offering a range of HR outsourcing services and platforms for businesses, along with comprehensive HR and employment administration outsourcing through a co-employment model. In October, it expanded its workforce management capabilities by acquiring WorkForce Software, a leading provider of workforce management solutions for large, global enterprises for around $1.2 billion in cash.
This acquisition improves ADP’s global workforce management offerings and positions the company to drive future innovation in the space. ADP’s first-quarter fiscal 2025 earnings exceeded revenue and EPS expectations, fueled by strong growth in new business bookings, high client revenue retention, and increased interest revenue from client funds. During the quarter, the company launched a platform upgrade with ADP Lyric HCM, highlighting its ongoing commitment to investing in innovative technology, particularly in AI and machine learning.
Automatic Data Processing (NASDAQ:ADP) outlook for fiscal 2025 remains positive. The company has raised its revenue growth forecast to 6% to 7% for the year, reflecting the recent acquisition of WorkForce Software and its ongoing strong business momentum. Additionally, ADP is projecting EPS growth of 7% to 9%, signaling continued improvement in its operational profitability.
15. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
Cramer suggested that AppLovin Corporation (NASDAQ:APP) has the potential to become a highly successful e-commerce company, given its strong performance in advertising within the video game industry.
“The biggest move, and I know you’re gonna think this is inflationary, is the staggering 907% windfall that comes from AppLovin, which makes software that helps app developers grow their reach and monetize their apps. It’s gone from $13 billion at the end of last year to $121 billion, although it was a lot higher on Friday, $142 billion.
Today, the stock got clobbered down 15% because it wasn’t added to the S&P 500, something many traders were expecting, anticipating, gambling on. AppLovin is adapting… and leaning in and pivoting and using its learning. There, worked in all the key buzzwords to become an early-stage e-commerce play that could be wildly successful. They’re so good with their mobile gaming technology that they’ve decided to go all in with video game advertising. These are free mobile games that make their money by showing you ads. Is that worth an almost tenfold gain? The short answer is no. You don’t rally that much in a simple line extension, but what if the same technology could be used for all of e-commerce? Now that’s a much more exciting story and it’s one being told right now.
I can’t fault anyone for suspending the rigor and believing there may be something very big here. Who cares if it might be pure magical thinking, certainly not the investors. Just look at how the stock soared last week when lots of speculators swooped in betting that AppLovin would be added to the S&P 500 after the close Friday. Now, by the way, that’s another thing that tends to happen to stocks worth north of a hundred billion. It didn’t happen. Now they’re getting clobbered.”
AppLovin (NASDAQ:APP) is a company that provides software solutions aimed at improving marketing and monetization strategies, primarily through tools for app measurement, analytics, and in-app bidding. It also runs a portfolio of free-to-play mobile games. The company’s management has expressed confidence in its ability to achieve growth rates of 20% to 30% in mobile game advertising over the near future.
Beyond its core business, the company is branching into new areas that could significantly accelerate its growth trajectory. The company is currently piloting an e-commerce advertising solution, and the early results have been promising. During the third earnings conference call, CEO Adam Foroughi mentioned that initial data had surpassed expectations, with advertisers in the pilot program reporting substantial returns, often exceeding the results from other media channels.
In many instances, advertisers have experienced nearly a 100% incrementality from the traffic driven by AppLovin’s platform. Based on these outcomes, AppLovin (NASDAQ:APP) is optimistic about the potential of this new vertical and expects it to scale considerably by 2025, becoming an important contributor to its revenue in the years to come.
14. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 51
Cramer noted that Chubb Limited (NYSE:CB) stock has rallied in 2024 and said:
“It’s joined by Chubb Limited, the property casualty insurance kingpin, which was up 26%… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
Chubb Limited (NYSE:CB) offers a wide range of insurance and reinsurance products, including coverage for commercial, personal, agricultural, and life insurance, as well as specialty reinsurance services.
Recently, AM Best affirmed Chubb Limited’s A++ (Superior) Financial Strength Rating and “aa+” Long-Term Issuer Credit Ratings, reflecting the company’s strong balance sheet, excellent operating performance, and global market leadership. Chubb’s solid capitalization, underwriting results, and diverse international presence contribute to its top-tier ratings, though some capital growth has been constrained by financial leverage and share repurchases.
AM Best noted that the company’s exceptional operating performance is driven by the group’s consistently profitable underwriting results, as evidenced by a combined ratio in the mid-to-high 80s, which significantly outperforms the industry averages for top-rated insurers. Ratings for other Chubb subsidiaries reflect similar strengths and support from the parent company.
For the first nine months, Chubb Limited’s (NYSE:CB) net income and core operating income reached record highs of $6.70 billion and $6.75 billion, reflecting increases of 16.9% and 13.8%, respectively. On a per-share basis, year-to-date net income and core operating income of $16.38 and $16.50 also set records, up 18.8% and 15.6%. During this period, P&C underwriting income totaled $4.28 billion, an 8.4% increase.
The company’s management has expressed confidence in the company’s ability to sustain strong growth in operating earnings and EPS, driven by P&C revenue growth, underwriting margins, investment income, and life income.
13. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 54
Talking about Marsh & McLennan Companies, Inc. (NYSE:MMC), Cramer noted that the insurance business is “on fire”.
“… Not to mention insurance broker Marsh & McLennan, that’s up 20%. The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
Marsh & McLennan (NYSE:MMC) is a professional services firm offering advisory and solutions in risk management, strategy, and people-related areas, including insurance and reinsurance broking, analytics, and strategic consulting. On December 11, RBC Capital analyst Scott Heleniak raised the rating on the company stock from Sector Perform to Outperform, with a revised price target of $250, up from $242.
The firm considers Marsh a “high-quality insurance broker” with strong visibility into robust sales and earnings growth through 2025. The company’s diverse business mix offers stability, making it less vulnerable to fluctuations in property and casualty pricing as the cycle progresses. RBC anticipates that the McGriff acquisition will enhance Marsh’s position in the middle market and finds the stock’s valuation appealing, as it trades at a discount compared to some competitors.
In November, Marsh & McLennan (NYSE:MMC) announced its acquisition of McGriff Insurance Services for $7.75 billion, as the industry prepares for increased business spending on policies amid a stronger economic outlook. The company stated that the deal, made through its Marsh McLennan Agency division, is expected to strengthen the unit’s offerings in commercial property and casualty, employee benefits, management liability, and personal insurance.
12. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Cramer noted that as of last Friday’s close, Analog Devices, Inc. (NASDAQ:ADI) stock was up 11%.
“Analog Devices, that’s internet of things, up 11%… But both Micron and ADI are well off their high, so the whole thing might be a bit of a comedown for them.”
Analog Devices (NASDAQ:ADI) designs and manufactures integrated circuits, software, and subsystems, offering products for data conversion, power management, amplifiers, radio frequency ICs, and micro-electromechanical systems. The company recently reported its fourth-quarter earnings, with revenue of $2.4 billion, exceeding analyst expectations. Adjusted EPS stood at $1.67, also slightly above estimates.
However, the company saw significant year-over-year declines, particularly in its industrial segment, which dropped by 21% in the quarter and 35% for the fiscal year. CEO and Chairman Vincent Roche acknowledged these challenges, attributing them to unprecedented customer inventory pressures. Despite this, he highlighted the resilience of the company’s business model, which allowed the company to maintain operating margins above 40%.
During the earnings call, Analog Devices (NASDAQ:ADI) management emphasized the company’s ongoing focus on research and development, which contributed to the double-digit growth in its design win pipeline for fiscal 2024. The company also mentioned the momentum in its Maxim revenue synergies pipeline, particularly in sectors like GMSL, healthcare, and data center power. This progress is seen as a crucial step toward the company’s goal of achieving $1 billion in revenue synergies by 2027.
11. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Cramer has liked Palo Alto Networks, Inc. (NASDAQ:PANW) for some time now and recently commended its CEO, saying:
“Last but not least, we’ve got a cybersecurity company that CNBC investing club members know all too well called Palo Alto Networks, up 37%… Big deal for Palo Alto, a huge journey undertaken by CEO Nikesh Aurora…”
Palo Alto (NASDAQ:PANW) is one of the most recognized cybersecurity companies in the world, providing a comprehensive range of security solutions aimed at protecting organizations from the ever-changing landscape of digital threats. The company recently reported strong financial performance for its fiscal 2025 first quarter, surpassing consensus estimates and raising its guidance for the full year.
In the first quarter of fiscal 2025, the company generated $2.1 billion in revenue, marking a 14% increase compared to the same period last year. Its EPS rose by an impressive 77%, reaching $0.99. The company’s next-generation security services, which are a key area of growth, saw its annual recurring revenue surge by 40% to $4.5 billion.
Palo Alto (NASDAQ:PANW) also highlighted a notable increase in the size of customer deals. The number of customer accounts spending over $1 million on its cybersecurity platform grew by 13% year over year, reaching 305 accounts. More significantly, the number of accounts spending over $5 million saw a 30% increase, growing at an even faster pace.
10. KKR & Co. Inc. (NYSE:KKR)
Number of Hedge Fund Holders: 66
Cramer, talking about how KKR & Co. Inc. (NYSE:KKR) joined the $100 billion club as of last Friday’s close, said:
“… Just like fellow corporate raider, well we don’t really wanna call them that but KKR, up 91%. That’s outstanding performance from two firms that truly know how to make money. It’s odd to think that they could have such good years without ringing the register by taking their portfolio companies public. Maybe holding onto positions isn’t such a bad move… These two private equity firms are part of a trend that allows startups to stay private longer internally because the process of coming public is brutal with a lot of pressure from regulators and then from money managers. Well, I mean, this is a great way to go. Formerly, these companies had to tap the public market for capital. Now they tap outfits like KKR and Apollo.”
KKR & Co (NYSE:KKR) is a private equity and real estate investment firm specializing in a broad range of investments, including acquisitions, buyouts, credit special situations, and growth equity across various industries. Recently, it has been in a competitive bid to take Fuji Soft, a Japanese IT services company, private. The firm’s approach has been marked by aggressive tactics, outbidding Bain Capital in a bidding war for the $4 billion software maker.
According to Reuters, KKR & Co (NYSE:KKR) acquired about 34% of Fuji Soft in the first stage of its tender offer and raised its bid to 9,451 yen per share, a move that surpassed Bain’s offer. Fuji Soft’s board subsequently expressed support for KKR, stating that Bain’s offer had become unviable. Analysts suggest that without management backing, Bain is unlikely to make a higher bid.
9. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 70
Cramer commented that data center-related stocks like Arista Networks, Inc. (NYSE:ANET) have run up in the year.
“There’s Arista Networks, which provides hardware and software that monitors data and provides solutions for the big data center companies. No wonder the stock rallied 83% yet it remains relatively unknown, in part because it’s invisible. It makes so-called white boxes. So what? The money’s not invisible.”
Arista Networks (NYSE:ANET) specializes in providing networking solutions for data centers, campuses, and routing, with a focus on AI-driven switches and software designed for automation, monitoring, and security. The company is known for offering cutting-edge technology that addresses the growing demands of AI workloads.
Earlier this year, the company introduced the Arista Etherlink AI platforms, which were developed to optimize network performance for AI-intensive tasks. Among its most advanced solutions is the Distributed Etherlink 7700 AI networking platform, engineered to support up to 10,000 GPU clusters, which are critical for AI processing. This platform was created in close collaboration with Meta, one of its key partners.
For the fourth quarter of fiscal 2024, Arista Networks (NYSE:ANET) expects to generate revenue between $1.85 billion and $1.90 billion, with gross margins anticipated to be slightly lower. Management emphasized the importance of continuing investments in research and development to drive innovation, ensuring the company’s products meet the evolving needs of the market.
8. Fiserv, Inc. (NYSE:FI)
Number of Hedge Fund Holders: 71
Cramer highlighted Fiserv, Inc. (NYSE:FI) and said:
“Now it was a big cluster with gains in the mid-fifties. First up it’s Fiserv, the transaction processing company.”
Fiserv (NYSE:FI) provides a range of payments and financial services technology, including merchant acquiring, mobile payments, fraud protection, digital banking, card transaction processing, and various network services. The company operates with extensive reach, serving nearly every U.S. household.
As per Marc DeCastro, research director at IDC Financial Insights, the company has maintained its position as the largest global provider of technology solutions for the financial services industry, as recognized in the 2024 IDC FinTech Rankings. The global financial services industry is forecasted to spend more than $800 billion by 2026, further showing the significance of Fiserv’s role in this market.
In 2024, Fiserv (NYSE:FI) experienced noteworthy financial performance, with adjusted revenue increasing by 7%, reaching $14.22 billion in the first nine months of the year compared to the same period in 2023. Organic revenue growth was particularly strong, rising by 17%, driven by a 29% increase in the Merchant Solutions segment and a 6% rise in the Financial Solutions segment.
The company’s adjusted earnings per share grew by 18%, reaching $6.29 during the same period. Additionally, the company saw a 23% increase in free cash flow, which totaled $3.34 billion for the first nine months of 2024, up from $2.72 billion in the previous year.
7. Apollo Global Management, Inc. (NYSE:APO)
Number of Hedge Fund Holders: 82
Cramer commended Apollo Global Management, Inc. (NYSE:APO) stock’s performance in 2024, saying:
“Next is Apollo Global, a private equity firm that had rallied 93% for the year, joining the hundred billion dollar club as of Friday’s close… That’s outstanding performance from two firms that truly know how to make money. It’s odd to think that they could have such good years without ringing the register by taking their portfolio companies public. Maybe holding onto positions isn’t such a bad move… These two private equity firms are part of a trend that allows startups to stay private longer internally because the process of coming public is brutal with a lot of pressure from regulators and then from money managers. Well, I mean, this is a great way to go. Formerly, these companies had to tap the public market for capital. Now they tap outfits like KKR and Apollo.”
Apollo Global (NYSE:APO) is a private equity firm that invests in various markets, including credit, private equity, infrastructure, real estate, and secondaries. The firm focuses on a wide range of investment strategies across multiple sectors. CEO Marc Rowan is optimistic about the opportunities for private market investing with the anticipated changes in the White House administration.
On December 11, he noted that despite a challenging political environment during the Biden administration, the firm has prospered and expects positive changes for private markets. Rowan sees significant potential in leveraging private assets, particularly with investment-grade leverage, and believes that hybrid investments offer the best risk-reward.
He also sees opportunities for banks as the regulatory environment shifts and mentioned that Apollo Global (NYSE:APO) is exploring partnerships with them. Additionally, he highlighted the need for litigation relief to allow private assets to be added to retirement funds like 401(k)s.
6. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Calling Citigroup Inc. (NYSE:C) an anomaly, Cramer noted that the stock has returned 45%.
“You want [an] anomaly? Hey, how about Citigroup with a total return of 45%, enough to finally let it sneak into the hundred billion-dollar club. Not bad, it’s part of the failings of banks that are finally getting their due.”
Citigroup (NYSE:C) is a leading global financial services firm that provides a wide range of financial products, including cash management, trading, and investment banking services. According to CFO Mark Mason at the Goldman Sachs 2024 U.S. Financial Services Conference on December 10, the company is on track to meet the high end of its revenue forecast for 2024, which is between $80 billion and $81 billion.
He highlighted that net interest income, excluding markets, has exceeded expectations for the year. While the bank expects its expenses to be near the upper end of the initial guidance, Mason anticipates positive operating leverage extending into 2025 and beyond. In the fourth quarter, investment banking fees are expected to increase by 25% to 30% compared to the previous year, and Markets revenue is projected to rise by a high teen percentage.
Mason also noted that equities, particularly prime balances, continue to show strong momentum. Returning capital to shareholders remains a key priority for the company, and Citigroup (NYSE:C) aims to complete $1 billion in share repurchases during the quarter, with $500 million already repurchased.
5. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 90
Cramer mentioned Eaton Corporation plc (NYSE:ETN) and remarked:
“Now it was a big cluster with gains in the mid-fifties… Then there’s Eaton, Charitable Trust holding, makes electrical components for the data center.”
Eaton (NYSE:ETN) is a power management company offering a wide range of electrical, aerospace, vehicle, and eMobility products and services. As per management’s guidance, the company expects its organic growth for 2024 to range between 8% and 9%, although it anticipates the revenue growth to fall on the lower end of that spectrum due to challenges like ongoing labor strikes in the aerospace industry and a slowdown in vehicle markets.
For 2024, adjusted EPS is forecast to be between $10.75 and $10.81, with the midpoint of $10.78 representing an 18% growth in adjusted EPS. This projection reflects a slight increase of $0.08 over its previous estimate and a $0.63 rise from its initial guidance for the year. Looking ahead to 2025, management expects strong growth across nearly all markets, with particularly high growth anticipated in data centers, distributed IT, commercial aerospace, and electric vehicles.
Utility and other markets are also expected to experience solid growth, while the commercial vehicle market is forecast to decline. In total, Eaton (NYSE:ETN) anticipates its end markets will grow by 6% to 8% in 2025, with incremental margins between 30% and 35%. The company’s ongoing multi-year restructuring program is expected to result in savings of $75 million. Additionally, it plans to continue share repurchases, estimating around $2 billion in buybacks for the year.
4. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 92
Cramer likes Boston Scientific Corporation (NYSE:BSX) and said that it is a “superior company”.
“Now it was a big cluster with gains in the mid-fifties… Finally, there’s Boston Scientific, which makes minimally invasive medical devices. We’ve had them on… Some would say it just builds a better mousetrap, crude and somewhat denigrating but true, a superior company.”
Boston Scientific (NYSE:BSX) designs, manufactures, and markets medical devices for various interventional specialties, offering products for various conditions. The company’s growth prospects are furthered by its continued focus on acquiring and integrating other medical technology companies. In November, it completed the acquisition of Axonics, Inc., a company specializing in devices to treat urinary and bowel dysfunction.
The transaction, valued at $3.7 billion in equity, was financed in part by cash raised earlier in the year, which is expected to generate about $100 million in nonrecurring interest income for the company in 2024. Additionally, in the same month, it agreed to acquire Cortex, Inc., a company focused on developing diagnostic mapping solutions for atrial fibrillation (AF), a heart rhythm disorder. The deal, which is expected to close in the first half of 2025, complements the company’s efforts in advancing its cardiac portfolio.
Also, at the end of November, Boston Scientific (NYSE:BSX) announced another agreement to acquire Intera Oncology Inc., a medical device company specializing in the treatment of liver cancer through its hepatic artery infusion pump and chemotherapy drug. This acquisition is also expected to be completed by mid-2025, further expanding Boston Scientific’s reach in the oncology sector.
3. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 95
Cramer called The Progressive Corporation (NYSE:PGR) a winner and commented:
“Next we have Progressive. Now it’s up 60%. This auto insurer is known to use more AI in pricing than any other company… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
Progressive (NYSE:PGR) is an insurance holding company that provides a range of personal and commercial property-casualty insurance products, including auto, residential, and business-related coverage. It has been at the forefront of technological innovation in the insurance industry, particularly with the use of telematics. The company was one of the early adopters of using driver data, such as mileage, speed, and braking patterns, to personalize insurance rates for individual drivers.
As per Barron’s, Cathy Seifert from CFRA Research highlighted that the company’s AI capabilities are ahead of the curve, which is evident from the company’s early use of artificial intelligence. In 2017, well before the rise of AI models like ChatGPT, it introduced a chatbot version of Flo, designed to assist customers with AI-enhanced quoting technology.
Josh Shanker, a senior insurance analyst at Bank of America, added that although large language models are a newer development, the company has been using AI techniques for decades, particularly in pricing insurance by crunching data, making the company more advanced than its competitors in this regard.
During its third-quarter earnings call, Progressive (NYSE:PGR) management revealed that it has been utilizing AI in its call centers for over ten years. The company implemented a chatbot to handle repetitive inquiries, reducing call volume by approximately 15%. On the claims side, it also utilizes automation for estimates, having tagged millions of images to facilitate this process.
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 98
Cramer called Spotify Technology S.A.’s (NYSE:SPOT) rise “meteoric” and said:
“Third, no one talks about the meteoric rise of Spotify. The audio subscription company with popular figures like Taylor Swift, the Weekend, Bad Bunny, Chappell Roan, oh and Billie Eilish as well as a host of famous podcasters including the influential Joe Rogan.
Spotify has rallied 165% year to date, joining the hundred billion dollar club as of Friday’s close. Why did it suddenly take off? Simple, the market loves subscription models because they’re sticky. Netflix, Amazon, Costco, all subscription businesses, they’re raving successes and now Spotify is too.”
Spotify (NYSE:SPOT) provides audio streaming subscription services, offering users access to a vast array of music and podcasts. Paying users enjoy an ad-free, unlimited experience, while free users access content with ads on various devices. It has seen consistent growth in premium subscription revenue since its public listing in 2018. In the third quarter, premium revenue grew by 24% year-over-year on a constant-currency basis.
It was largely driven by an increase in subscribers and a rise in average revenue per user (ARPU), which benefited from recent price hikes. The company’s user base also continued to expand, with Monthly Active Users (MAUs) reaching 640 million by the end of the quarter, reflecting an 11% year-over-year increase. Additionally, the number of subscribers grew by 12% year-over-year, totaling 252 million.
For the fourth quarter, Spotify (NYSE:SPOT) expects to reach 260 million premium subscribers, which would represent an increase of 8 million. The company also anticipates that the total number of MAUs will grow to 665 million, marking a net gain of 25 million users from the previous quarter.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 107
During Mad Money’s episode, Cramer noted that Micron Technology, Inc. (NASDAQ:MU) market cap touched $100 billion in 2024 and said:
“Micron, semiconductors, does high bandwidth, 18%… But both Micron and ADI are well off their high, so the whole thing might be a bit of a comedown for them.”
Micron (NASDAQ:MU) designs, develops, and manufactures memory and storage products, offering high-speed, low-latency semiconductor devices and non-volatile memory solutions. The growth of AI is expected to play a significant role in the company’s future expansion, particularly in the demand for high-bandwidth memory (HBM) used in AI servers. The company has projected that the total addressable market for HBM will increase substantially, from around $4 billion in 2023 to over $25 billion by 2025.
On December 10, Reuters reported that the U.S. Department of Commerce has finalized a $6.1 billion subsidy for the company, intended to support the development of several domestic semiconductor manufacturing facilities. This investment, which was originally announced in April, is one of the largest government awards to semiconductor companies under the U.S. CHIPS and Science Act.
The funds will help finance factory projects in New York and Idaho. Additionally, Micron (NASDAQ:MU) and the Commerce Department have reached preliminary terms for an extra $275 million investment aimed at expanding the company’s manufacturing facility in Manassas, Virginia, which produces chips primarily for the automotive, networking, and industrial markets.
While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) 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 MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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