In this piece, we will look at the stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer continued to comment on the DeepSeek fallout. He shared that while the performance of the Chinese AI model was impressive, especially as it had managed to match models such as OpenAI’s o1, there were other factors to consider particularly when gauging the demand for high-end Blackwell GPUs. These GPUs are made by Wall Street’s favorite AI GPU firm, and Cramer is increasingly starting to tilt towards the fact that their true magic might lie in enabling the proper functioning of humanoid robots.
As for the stock, the CNBC TV host continued to assert that there is a large chunk of traders that do not properly understand the company. Cramer shared “I was in a bar last week, person to the right said I bought [the GPU stock] because of you. A person left said I bought [the GPU stock] cause of you.” He added that in response he asked does “anyone know what [the GPU stock] does?” Yet, instead of outlining the firm’s business model, “They said yeah! It’s something that you recommend!” he added.
While the GPU company might have lost close to $600 billion in value during the selloff, another AI news caught Cramer’s attention. This was a Reuters report that claimed that OpenAI was seeking to raise $40 billion in capital on a $400 billion valuation. When asked how such valuation was possible, particularly after Monday’s havoc, Cramer replied “So I was just being like you. It is, without a doubt, a time not of inflation, but of a recognition.” He added that this ‘recognition’ is why he likes the GPU firm as well. So what is the recognition that’s got Cramer enamored? Well, according to him “it’s a recognition that it is a new industrial revolution. And anybody who’s in it is a worth lot more than the people that aren’t!”
He also sardonically targeted co-host David Faber and said “Look I’m sure that when they discovered the cotton gin, and you’re a weaver, you’re saying you know what, that’s ridiculous!” Not satisfied, Cramer continued “Remember the steam engine? Are you still liking the wheel and the pulley? Are you the wedge? You’re the wedge!”
Cramer also commented on the market moving higher during the day after the week’s devastation. He mentioned a couple of non-tech sectors that had particularly done well. In his words:
“I was surprised that there were a lot of areas yesterday that were very very good. And people were very focused obviously, on DeepSeek, but then there was a whole another group people were saying, you know what, healthcare really back. Uh, industrials. I’m looking at industrials, there’s something from [an industrial firm providing motion control products] yesterday that was really fabulous.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on January 31st.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders In Q3 2024: 72
Comcast Corporation (NASDAQ:CMCSA) is an American media giant that operates in the production, broadcasting, and internet markets. The age of the Internet which has shifted users away from traditional media to online platforms has impacted the firm. Comcast Corporation (NASDAQ:CMCSA)’s shares are down by 28% over the past year as the firm has continued to lose subscribers. The trend continued in Q4 2024 after the firm’s financial results saw it lose 139,000 broadband subscribers to outpace estimates of 91,000. Cramer’s comments for the stock were for its P/E multiple:
“It’s the ninth lowest PE of the S&P 500. . .and the other eight are so terrible, I really struggle to be the ninth, I don’t like to be in the 451st place. You don’t make the playoffs. You’re not in the playoffs.”
“The other eight companies have no earnings whatsoever.”
“I took it off my screen.”
9. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders In Q3 2024: 76
The Walt Disney Company (NYSE:DIS) is a multimedia and entertainment giant that appears to be holding up against the industry trend of losing share to internet platforms. It’s a regular feature on Cramer’s show, as he has expressed optimism in the firm’s CEO Bog Iger’s turnaround strategy. The Walt Disney Company (NYSE:DIS)’s streaming division profit turned a profit for the first time in Q3 2024 and it also appears to have reduced losses in its cable platforms. Cramer is optimistic about the firm’s upcoming earnings:
“Disney, interesting piece. JPMorgan says nothing good but keeps as a buy. But at least quantifies what the fires have done. You know I’m a big believer in Disney going into the quarter.”