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.”
8. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders In Q3 2024: 44
Atlassian Corporation (NASDAQ:TEAM) is a software company that enables collaboration within and outside a business. It is a classic SaaS stock with high multiples despite the fact that the firm does not generate profit. Atlassian Corporation (NASDAQ:TEAM)’s Rovo platform is its answer to the industry’s AI demand, and the firm has introduced AI into business analytics with the platform. The stock has gained 22.8% over the past year, with a notable jump of 14.9% in January after Atlassian Corporation (NASDAQ:TEAM) raised its annual growth forecast to 18.75%. Growth is the primary narrative drive for SaaS stocks and it was also on Cramer’s mind:
“Symbol TEAM. I think that people look to enterprise software . .you’re thinking about . . . . this is collaboration software, it makes it so that you can collaborate better with your customers. Collaborate better with your teammates. It really does work. I had them on a bunch of times. But I will tell you this David, it’s the beacon. The growth hounds in the market always want to have the high multiple, the rule of 40, kind of stocks. . . . But Atlassian’s a really good company and everybody I know who’s on it. Young people tend to be on it and they’re putting the older people at the office to shame because they work much faster with it. But it works. It’s terrific and it’s going to allow people to buy enterprise software again which had been down in the dumps after ServiceNow.”
“It’s loved in the office and they’re great guys by the way. I’ve had them on a bunch of times. And I will say this David, their enterprise software is the lifeblood of so many different people versus say Apple. They’ll pay thirty times cash flow for these, fifty times sales, you know all that stuff. Instead of what you were saying about Apple, there’s no discipline when it comes to these companies. Because people want high growth. And those mangers now have been given the green light to go back and buy aaalll that stuff because of Atlassian. They thought they had the green light from SericeNow, they didn’t get it.”
7. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders In Q3 2024: 45
Kimberly-Clark Corporation (NYSE:KMB) is a personal care consumer products firm that sells diapers, wipes, tissues, and other associated items. Its shares have been a notable standout amongst defensive names as they are up by 7.4% over the past twelve months. Throughout 2024 Kimberly-Clark Corporation (NYSE:KMB) was able to balance its price hikes to counter inflation with sufficient volumes to influence margins. The careful management meant that during Q4, the firm grew its North American product volume by 1.90%. Here’s what Cramer said about Kimberly-Clark Corporation (NYSE:KMB):
“Proctor’s done the best. I like the fact that Kimberly, initially people didn’t like the Kimberly-Clark call, but if you want the boring stock that can do well on that group, it’s shifting over to Kimberly.”
6. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders In Q3 2024: 50
Caterpillar Inc. (NYSE:CAT) is one of the largest heavy equipment and industrial machinery companies in America. Its shares are up by a modest 23% over the past year as the overall industrial and construction environment has remained slow in the US. The shares surged by 10.7% after the November Presidential Election and added another 16% in the second and third weeks of January. However, Caterpillar Inc. (NYSE:CAT)’s shares soon lost momentum as they dipped by 3% after the firm warned that an uncertain economic environment could lead to a sales drop this year. However, Cramer thought the market read too much into Caterpillar Inc. (NYSE:CAT)’s earnings:
“I felt Caterpillar shouldn’t have been down as much. I think that Caterpillar had a good quarter.”
5. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders In Q3 2024: 51
Mondelez International, Inc. (NASDAQ:MDLZ) is a confectionery company known for products such as Dairy Milk and Oreos. The firm struggled with inflation throughout 2024 as lower purchasing power due to inflation meant that consumers shifted spending to necessary and affordable items. The slow spending meant that Mondelez International, Inc. (NASDAQ:MDLZ)’s stock lost 17.4% in 2024, with the drop driven by a mix of low volumes and consumer boycotts of Western brands in emerging markets. Cramer commented that while Mondelez International, Inc. (NASDAQ:MDLZ) was a top retail stock before, now the sentiment has soured:
“It had been Mondelez but the price of cocoa is up too much, people don’t like Mondelez as much.”
4. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders In Q3 2024: 54
Colgate-Palmolive Company (NYSE:CL) is a well-known global toothpaste brand. Estimates show that the firm commands 41% of the global toothpaste market. Colgate-Palmolive Company (NYSE:CL)’s shares closed 2024 13% higher after having peaked by 35% at one time. The latest bit of turmoil for the stock came in January when it dipped by 4.6% after the firm’s flat annual sales guidance for 2025 missed analyst estimates of 1.3% growth. Colgate-Palmolive Company (NYSE:CL)’s revenue also missed estimates, and key emerging market growth slowed. Here’s what Cramer said:
“Colgate forecasts flat, I was surprised. Colgate, you used to be able to set your clock on those guys.”
3. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders In Q3 2024: 58
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor manufacturing equipment provider. Its shares are down by 1.78% over the past year as the firm struggles to navigate from a selloff that started in July. Back then, Lam Research Corporation (NASDAQ:LRCX)’s stock tumbled as word of tighter chip equipment restrictions against China started to spread. Then, the firm struggled as weak chip equipment demand signaled by peers such as ASML continued to drive its narrative. Lam Research Corporation (NASDAQ:LRCX)’s shares fell by 5% during the DeepSeek selloff but gained 7.4% later after ASML beat earnings estimates. Here is what Cramer said:
“Of the winners there [in semiconductor equipment], it’s Lam. That’s the one you want and then after that KLA and then after that Applied Materials.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders In Q3 2024: 63
Chevron Corporation (NYSE:CVX) is one of the largest oil companies in the world. The firm has a presence in 180 countries. Its shares have gained just 1% over the past twelve months after a roller coaster of performance in December and January. Chevron Corporation (NYSE:CVX)’s stock dipped by 8.8% in December after fresh challenges to its multi-billion dollar acquisition of Hess Corp surfaced. Then, the shares surged by 9.7% in January only to tumble by 4.6% after it missed analyst EPS estimates of $2.11 by posting $2.06. Here is what Cramer said:
“I was surprised. . . but I like Chevron.”
“Chevron was an okay quarter.”
“Chevron has returned so much cash flow. They got a really good dividend. They have got a good feel, in the old Soviet Union so to speak and it’s working. And I was out visiting their stuff in the Gulf of America and it was doing quite well.”
“Because I’ve spent a lot of time talking with Mike about this, Mike Wirth, CEO. Cause I think Chevron’s worth more than Exxon. I like the cash flow. I like the growth. The analysts just seem to put numbers up that are too high for them to meet, quarter after quarter! I, you know it’s almost like they have it in for Chevron by making it so that. . .”
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders In Q3 2024: 68
Intel Corporation (NASDAQ:INTC) is the beleaguered American chip manufacturing giant whose shares lost 59.60% in 2024 due to dropping PC chip sales, management turmoil, a dividend suspension, and contract manufacturing troubles. 2025 hasn’t been kind to the stock either as it has lost 3.91% year-to-date. Intel Corporation (NASDAQ:INTC) has a lot riding on its 18A chip process and contract manufacturing business. Disappointments on either front could further damage the stock. Cramer, who has long been a bear, was surprised by Intel Corporation (NASDAQ:INTC)’s latest earnings report:
“Intel reported last night. I felt the cash flow was very good, better than I expected. The first quarter is historically not a great quarter for Intel, it will not be a great quarter. But I think that they are trying to stabilize the ship by talking about how they have enough cash to be able to go through. . .there was no messianic message about Intel, it was more of like listen we’re going to get through this . . . it was refreshing. Don’t expect the stock to go up. But perhaps the trajectory will not be just straight down.”
INTC is a stock Jim Cramer recently talked about. While we acknowledge the potential of INTC 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 timeframe. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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