On Wednesday, Jim Cramer, the host of Mad Money, took a closer look at the state of the market and the stocks that saw gains and losses that day.
“It’s time to praise the winners, the ones that don’t need to wait until April 2nd to find out whether their business will be slammed by tariffs when President Trump announces whose earnings will be cut and who stay the same in a host of industries because tariffs are like taxes and they can cut deep into profits. Today, it all came together even as the averages got hit.”
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He noted that Wall Street, for the most part, chose to rally around domestic companies, especially those in the service sector. The trend, according to Cramer, made sense after the president revealed a 25% tariff on all cars made outside the U.S. The news came after the market closed, and while some had anticipated tariff increases, few had expected such a severe measure.
Cramer noted that he even predicted earlier in the day that it might happen, but he did not find many who agreed with him. Now, with a new tariff on 7.38 million cars coming into the U.S., he suggested it would create a significant disruption in the global market, possibly starting that very evening. Despite the uncertainties caused by these new tariffs, Cramer pointed out that there could still be winners in such a situation once the dust settles. He referenced the S&P leaderboard, highlighting stocks that had shown resilience. He added:
“I bet the data center build-out continues to pace, but very few people believe right now in my view. We’re in a curious moment here where any reassurances that the industrial revolution of AI is still on just won’t cut it. Every single stock in the sector is being mauled by the bears.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 26. 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 Discussed These 9 Stocks Recently
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Cramer pointed out that NVIDIA Corporation (NASDAQ:NVDA) was at the center of the recent market turmoil, which was reflected in its nearly 6% drop on the day. He noted that the company was the most affected by the events that unfolded. He went on to say:
“Let’s start with the White House. There has been a feeling among executives that strictures put on by President Biden against NVIDIA when he did it right on the way out, once that limited the countries that NVIDIA could sell its best chips to, they might be lifted by President Trump. Now all day, I’m hearing that that’s wrong…. This morning, the Financial Time penned a story saying that NVIDIA’s chips somehow ran afoul of Chinese pollution controls….. It sounded like the typical journalist hit job against NVIDIA…. Nevertheless, along with the rumor, the White House slap down, well, you could expect a stock to get hit.”
Cramer reaffirmed his belief in the importance of NVIDIA’s (NASDAQ:NVDA) GPUs in the AI-driven industrial revolution, stating his stance on the company has not changed. However, he also predicted that the stock could continue to decline, noting he has been saying it for some time. He added:
“It’s become a whipping boy, I’ve been saying that. It’ll only get worse with tonight’s tariffs… I think the stock trades like a wavy inflatable tube man, also known as an air dancer…. My advice, if you think NVIDIA’s cheap and… the data center, the chief home of NVIDIA chips is spent, well then what? You know, there’s nothing wrong with owning a tube man. Except when you see a move south like this, you have to give it some room. You have to let it come down.”
NVIDIA (NASDAQ:NVDA) offers graphics, computing, and networking products for global markets including gaming, data centers, and automotive, among others.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Cramer commented on Broadcom Inc. (NASDAQ:AVGO) during the episode and stated:
“Now what happened in the service side here that was actually difficult was Super Micro. They provide hardware, but they also provide services. They, along with Arista Networks and Broadcom, they were all part of the data center story that people seem to have cooled on.”
Broadcom (NASDAQ:AVGO) is a company known for its expertise in designing, developing, and supplying semiconductor devices, with a strong track record in semiconductor design. During Squawk on the Street’s Monday episode, Cramer said:
“Broadcom’s in the mix by the way. And Marvel’s in the mix. But they’re not at the, they’re moons. They’re moons. I’m talking suns. . .people have to stay focused on that.”