In this piece, we will look at the stocks Jim Cramer recently discussed.
In the latest episode of CNBC’s Squawk on the Street, Jim Cramer couldn’t stop talking about the DeepSeek selloff, the AI models themselves, and how stocks are behaving after a trillion dollars of market value was wiped out on Monday. Cramer maintained that while DeepSeek’s ability to potentially reduce costs was impressive, it might not make the latest GPUs from Wall Street’s favorite AI GPU stock any less important.
After having done his research, the TV show host shared some uses of the GPU firm’s latest Blackwell chips that DeepSeek cannot use. According to him “Okay so here’s uses that DeepSeek can’t do. That you can do on Blackwell. Alright. Alright, multi-modal memory, spatial intelligence, physical actuation, vision, and touch. So those are the things that you need Blackwell for.” These are use cases that are involved in developing humanoid robots, and in a previous appearance, Cramer shared additional details.
“I mean Carl, the most substantive thing that people are hanging their hat on Trump and felt that they had to order. Now that’s almost conspiratorial. I think that they have more in mind, than just doing ChatGPT in an advanced way. And if that’s the case, then these companies in China they have figured out how to do the lower end. I think Jensen would say well that’s terrific. What we’re on is a very different plane. We’ve left that behind. . . . . That’s already in the industrial revolution. That’s the cotton gin. He’s talking about making the sewing machine. And I think that people don’t realize that he is a visionary and he is well ahead of everything we’re talking about.”
Another thing that he noted was that the gap left behind by institutional investors fleeing away from data center and GPU stocks on Monday was being filled by retail traders. Cramer maintained a strong position against daily traders. He shared:
“Well, I do know, I’ve been trying to pay attention to the myriad ETFs. And zero, zero day, they’re in control of the stock. And now that’s just. I mean I think those are the people, I urge those people to take the two points and [inaudible] Because that’s much more rigorous than whatever the hell they are doing. I think Jason Robins [CEO of a sports betting company] he runs a better operation than these clowns who are doing this stuff.”
Cramer wasn’t done commenting on the retail traders who are in it for daily profits. He shared “I mean look they let this happen because everybody wants to make a lot of money.” He believes that such trading is akin to gambling. “That’s, it is a bad thing. It is bad gambling. It’s like gambling on the line itself,” Cramer stated. He added “I bet the line’s gonna go from two to one. I bet that, if I, that if I create a new line, I’m going to do even better. That’s what these people are doing. And they should just go to [a sports betting platform], and have more fun, and lose less money!”
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. RH (NYSE:RH)
Number of Hedge Fund Holders In Q3 2024: 39
RH (NYSE:RH) is a home furnishing products retailer that sells a variety of items such as furniture and bathware. Its shares are up by 65% over the past year as the firm has benefited from several catalysts. One of these came in November when RH (NYSE:RH)’s shares soared by 20.5% in the days after Warren Buffett’s Berkshire Hathaway disclosed a stake in the company. However, their sensitivity to rates meant that the stock dipped by 5.8% in the days after the Fed’s December meeting. This meeting saw the central bank reduce its 2025 rate cut guidance. Cramer’s comments for RH (NYSE:RH) revolved around an improving retail industry, the firm’s CEO, and an analyst note:
“But retail’s been really strong. Williams Sonoma, RH, where Gary Friedman bought a ton of stock himself, caught a double, told you to buy it. Really, really terrific to see him call the shots like some . . .”
“Oh my god Goldman had a sell on it. They had to capitulate. They capitulated! Very exciting time if you just walk away from the semis for five seconds.”
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q3 2024: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics company whose shares are among the best performing on Wall Street. Over the past year, the stock has gained a whopping 412% in an unbelievable rally. Palantir Technologies Inc. (NASDAQ:PLTR) is also a regular feature of Cramer’s morning appearance. In most of these, he has praised the firm’s CEO Alex Karp, and touted its ability to work with Elon Musk and DOGE to reduce the Pentagon’s expenditure. However, recently, Cramer has started to doubt the latter unless Palantir Technologies Inc. (NASDAQ:PLTR) can ‘gain a seat at the table,’ according to him. His latest remarks were full of optimism about the firm:
“Palantir, right, which is, I told you is going to a hundred no matter what by hook or crook.”