In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the impact of Elon Musk’s DOGE cost-cutting efforts on the US government and how action against smaller agencies such as USAID can translate into action against larger agencies and programs.
According to him:
“But I do think that when the Defense Department is on the [inaudible], and then Medicare, Medicaid. I mean, Medicare, Medicaid, I don’t know a soul who thinks that there isn’t fat in there. And I also think that, kind of like the labor department, with the unemployment number we really don’t know what it is we have big revisions, if we had, if we gave to Salesforce, I don’t know. . .I think that, if we gave these companies, literally outsourced these companies, I know people are going to say, Jim you are like, that is so right wing, but if there’s, the machines are better. . “
Cramer also commented on recent Bitcoin price action which saw the cryptocurrency dip below the $90,000 mark. He linked Bitcoin as being a “proxy for the fact that we have thirty-six trillion in debt.” Cramer also wondered how much of the gain in Bitcoin’s price was due to Michael Saylor’s firm adding the currency to its balance sheet.
Cramer added that his team has concluded that so much of the “froth” in the market in untested areas such as quantum computing came from Bitcoin. He outlined: “The reason why we’ve had so much froth . . .we think that Bitcoin got people very excited about things that are space age and that the fundament of speculation is Bitcoin. That’s what turned it all on.”
Another topic that caught the CNBC TV host’s attention was the mergers and acquisition environment in the Trump administration. After the President’s election victory in November, investors were ecstatic as they believed that the new administration could create a healthy environment for deals. Commenting on how the rules of the market still remained the same, Cramer outlined:
“Look you can enforce the rules two ways. You can use the rules and talk. Or you can prosecute using the rules. And they’re not going to prosecute. They’re going to have discussions. They are not going to do it the way that Biden did.”
He also shared that the “size” of the deals that are taking place is “microscopic” and added that “The M&A and the IPO markets are as dead as I have ever seen them.”
Apart from the M&A sector, another sector he discussed was the consumer packaged goods. These firms have struggled amidst high input prices and inflation. Cramer believes “They should all, the consumer packaged goods companies, should merge. Because they’re pathetic. They’re pathetic parodies of stocks. . . which by the way I really like them.”
Finally, he also commented on the poor performance of Mag 7 stocks and inflation. According to Cramer:
“I mean, I keep thinking about what you said about the Mag 7, and their ability to be able to affect spending. If that’s the case, look, the Fed is, Austan Goolsbee, whom I really, really like, he’s been waffling. I wish he went the other way. Because I think the data says, that he would have been right. Except for insurance, stake, eggs, okay. These are bad. Insurance, steak, and eggs. And then entertainment is just ridiculous. If Swift were to cut the prices of her tickets, we would have a rate cut immediately.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on February 25th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
10. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders In Q4 2024: 79
Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial trading application that has enabled the boom in retail stock trading. As a result, its share price performance depends on broader financial markets, economic conditions, and the interest rate environment. Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock has gained a whopping 213% since going public last year. However, in 2025 the shares lost 30% in February after the firm’s income dropped by $27 million due to initiatives for attracting customers. Here’s what Cramer said about Robinhood Markets, Inc. (NASDAQ:HOOD):
“I have Vlad Tenev on tonight, really guy’s got Robinhood right. I mean to me, his app is so good you just go buy the Bitcoin . . why go for the steroids?”
9. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders In Q4 2024: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is a networking and data center equipment provider. Its shares are up by a modest 32% over the past year as the firm has navigated a tough non-AI market by focusing on AI networking equipment and cutting down its workforce to manage costs. Cramer’s comments about Cisco Systems, Inc. (NASDAQ:CSCO) surrounded the firm’s recent deal with AI GPU giant NVIDIA. Through the deal, the pair will work on NVIDIA’s ethernet connectivity system. Here is what Cramer said:
“People are talking about NVIDIA. And there is a nice deal this morning with Cisco. I think it’s actually much more important than people realize. Cisco’s the first to qualify. It’s going to be a real partnership. And that uh Chuck Robbins working closely with Jensen. But there is an overwhelming sense that this market keys on NVIDIA at a moment when we have no idea what the federal government’s gonna do to NVIDIA.”
8. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders In Q4 2024: 84
Lam Research Corporation (NASDAQ:LRCX) makes and sells chip manufacturing equipment which places its share performance at the mercy of the broader non-AI industry and geopolitical tensions. The firm’s shares have dropped by 13.40% over the past year as it has been affected by multiple catalysts such as American sanctions against China, chip machine manufacturer ASML’s tepid guidance, and the DeepSeek selloff. Cramer’s comments about Lam Research Corporation (NASDAQ:LRCX) surrounded the hit that the firm has taken from the China sanctions:
“I had Lam on and I had KLA on, and they’ve already taken the big hit. They could take another hit.”
7. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders In Q4 2024: 88
Home Depot, Inc. (NYSE:HD) is one of the biggest home improvement retailers in America. Given the fact that high interest rates tend to depress the construction industry, it’s unsurprising that the stock is up by a modest 5% over the past year. The high rates continued to impact the firm in February when The Home Depot, Inc. (NYSE:HD) guided a 2% drop in 2025 profit-per-share compared to a 4.6% growth that analysts were expecting. Here is what Cramer said:
“Yeah, as a Charitable Trust own, we’ve been telling people to buy it. . . .So the company reports at six o’ clock. I’m furiously trying to read the entire statement and I really know Home Depot really well. Have known it really well since 1983. And I’m thinking, this is good, this is good, I’m still reading. And there’s just guys beelining it and taking it down to three seventy-nine. I mean they’re like hitting it. And I’m thinking, I’ve gotta find out what’s wrong. I’ve gotta find out what’s wrong. And there’s nothing really bad. And they keep hitting it. So, let’s be aware that the first trade’s always not the right trade.”
“And they built that company that competes with Builder’s FirstSource, they bought SRS. Some could say well they shouldn’t. Well it’s helped people. Let’s say a contractor wants to build a pool, they’re able to do everything. But, look the stock’s been down for many, many days. And I point out, that in, in 2007 and nine, they bought a tremendous number of shares and there were shorts the whole time. Now here they add to the dividend. . .I’m saying is this company has navigated harder waters.”
6. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders In Q4 2024: 94
PayPal Holdings, Inc. (NASDAQ:PYPL) is a financial technology company whose payment and money transfer platform is one of the most widely used in the world. Its share price performance depends on user volume and user growth. These metrics, in turn, are influenced by the broader economic health which entices consumers to spend more on the platform and grow transaction volumes. PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock performance is indicative of these factors, as the shares dropped by 13% in February after the firm’s $1.21 billion in adjusted Q4 earnings missed analyst estimates of $1.44 billion. Here is what Cramer said:
“Look at PayPal today. They’re going to announce the infusion of AI and I think it’s going to blow you away. Alex Chriss, your pal. . . he’s got great stuff too.”
5. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders In Q4 2024: 115
Eli Lilly and Company (NYSE:LLY) is one of the largest pharmaceutical companies in the world. It is a key player in the weight loss drug market which drives the firm’s stock performance. Cramer has mentioned Eli Lilly and Company (NYSE:LLY) in multiple shows. While most of the focus on the stock is for its weight loss drugs, other factors that the TV host has noted include the firm’s manufacturing investments and drug research. Here are Cramer’s fresh remarks for Eli Lilly and Company (NYSE:LLY):
“I cannot believe it’s [recent price announcement] for the high dose! And, that means, the high does is, they’ve come down a lot in price. But now they’re gonna come down for everybody. So Lilly’s back, it’s bigger than ever, it’s making a major move. . . but Eli Lilly cutting the price is gonna make it so that it is dramatically good.”
“Lilly’s got the low price, Lilly’s got the big, but remember, it’s the big dose, okay.”
4. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders In Q4 2024: 116
Walmart Inc. (NYSE:WMT) is a well-known brick-and-mortar retailer. While several retailers struggled with high inflation hurting their volumes in 2024, the firm managed to close the year by marking 74% in share price gains. Walmart Inc. (NYSE:WMT) benefited from its scale which allowed it to introduce low-price products and eke market share away from others. In 2025, the stock is up by 6.9% after tumbling by 9% in February after the firm’s current fiscal year EPS forecast missed analyst estimates. Here is what Cramer said about Walmart Inc. (NYSE:WMT):
“Although Walmart has a degree of wealthier people going there. . . They’re getting that, the amount of how much people make of Walmart’s going up. This is an important bedrock. You can’t use it as a bank. But I think that rich people are overweight in the Mag 7.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q4 2024: 126
Tesla, Inc. (NASDAQ:TSLA) is the largest pure-play electric vehicle manufacturer in the world. Unlike other firms, the stock is tied closely to market sentiment about the firm’s CEO Elon Musk. After President Trump’s election victory last year, Tesla, Inc. (NASDAQ:TSLA)’s stock reversed the impacts of a sluggish EV market and closed the year 74% higher. However, weak deliveries and concerns about Musk’s politics hurting the brand have led Tesla, Inc. (NASDAQ:TSLA)’s shares to dip by 23% year-to-date. Here is what Cramer said:
“He [Musk] has a changeover in Tesla. There’s a changeover that he’s doing on the autos.”
“Alright so let’s say you send him an email saying listen what did you accomplish last week? What would he say? I’m down 47% in Germany? What would he say if you sent him that email?”
“I know. The industry’s doing incredibly well. And that’s literally, now you have to start questioning. Are they, is the left boycotting it?”
“And we’re still waiting for what’s gonna happen [inaudible] self driving. Look I think it’s a buy right here, frankly.”
“He [Musk] hasn’t lost his touch, he hasn’t lost his touch. Humanoid yes, Jonas.”
“Well, Tesla is a feel stock, it’s never been an earnings stock.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q4 2024: 223
NVIDIA Corporation (NASDAQ:NVDA) is the world’s latest AI GPU company. Cramer’s comments quoted here were made ahead of the firm’s highly important fiscal fourth-quarter earnings report. The results saw NVIDIA Corporation (NASDAQ:NVDA) post $39.3 billion in revenue and $0.89 in adjusted earnings to analyst estimates of $38.05 billion and $0.84. The firm’s Q1 guidance also surpassed estimates, but its gross margin guidance of 71% fell below estimates of 72.2%. NVIDIA Corporation (NASDAQ:NVDA)’s shares were flat in aftermarket trading after the report. Here is what Cramer said before the results were announced:
“People are talking about NVIDIA. And there is a nice deal this morning with Cisco. I think it’s actually much more important than people realize. Cisco’s the first to qualify. It’s going to be a real partnership. And that uh Chuck Robbins working closely with Jensen. But there is an overwhelming sense that this market keys on NVIDIA at a moment when we have no idea what the federal government’s gonna do to NVIDIA.”
“Well I mean they might, they literally might just say you know what we’re, we’re going to block NVIDIA. Not just the low-end NVIDIA but every NVIDIA. I had Lam on and I had KLA on, and they’ve already taken the big hit. They could take another hit.”
“No, block and say listen you’re not going to get anything from the United States.” “NVIDIA, big export market China. Are they going to take it away?” “How do you know the government doesn’t say no more low-end chips? Because if you had a lot of low ends. . . I’m talking about, you have a company that reports and maybe they’re not in control of their forecast. And the forecast has been very important.”
“Well cause the Biden administration was quite content having the lowest-end chips go to China. Maybe this administration, and this issue perhaps led by Peter Navarro, says nothing. You get nothing.”
“Well how about if they ban H20? We don’t know! . . .that’s the low-end, that’s like instead of the H200, right. No, it’s not a tinker toy versus, uh, you know a Caterpillar. But it is without a doubt something that is, that had passed muster with the previous administration because it was not really thought to be capable of military.”
“Look NVIDIA is the stock that people say is the biggest battleground. And there are people who think it’s dramatically overvalued. And I don’t get that. Uh, one of the things I’ve asked them, I’ve put the questions to them. You know you have a thing tomorrow, where you actually can ask the CFO some things. . .but I said look I need to know, what kind of, you have the biggest, you have this concentration of five customers. Maybe I want the pastiche if not mosaic of what, of what Apple has. Maybe I want a billion customers.”
“Yes! I am! I am worried. Because I think that if it really turned out to be that hard, to make Blackwell. We do know by the way that Blackwell, Dell’s got a good relationship and . . .HPE was late, but if I’m not, I mean I’m kind of, look I’m looking at the government, I thought the government was off the table.”
“Well I mean look, let’s understand, they say that they’re going to do more. Well what is there to do more? They’ve already restricted almost everything, they send them the lowest-end chips. They obviously still can use those. That’s it. Okay. And they’ve restricted, and I don’t know, look remember the Biden administration on the Saturday night before they ended, the eighteen countries? But I’m just saying that, like, why feel confident that NVIDIA has a good business model, but I don’t know whether the government says listen we’re not going to let you sell chips to all the countries that he just did a charm tour to. Look if you’re not worried, what [inaudible] are you in?”
“It doesn’t work for humanoids. It doesn’t work for video. It doesn’t work for self-driving.” “Look, what does the government mean? When it says it has to crack down on more? The government was cracking down so severely on these guys that I’m shocked that they have to crack down more. I mean they’re probably willing to give anything to the Kremlin.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders In Q4 2024: 317
Microsoft Corporation (NASDAQ:MSFT) is a global software giant. While it was one of the best-performing stocks in the early days of the AI wave due to its proximity to OpenAI, more recently, the shares have lost their shine. Microsoft Corporation (NASDAQ:MSFT)’s stock is down by 3% over the past six months on the back of a 6% drop in late January and a 4% dip in February. The January drop occurred after the firm’s earnings report saw its Cloud business leave investors unimpressed. In February, Microsoft Corporation (NASDAQ:MSFT)’s shares dropped after a report suggested that the firm was scaling back data center development. Here is what Cramer said:
“You know they’re sister, mother, sister, mother at this point. I don’t know what’s going on with that.”
“Oh yeah, he’s [inaudible] down. Wait till his IR, wait till his IR in Australia . . .”
“Anything that’s that positive is just wrong. CoPilot, what is that? Who is CoPilot with? What is she?”
MSFT is a stock Jim Cramer recently discussed. While we acknowledge the potential of MSFT 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 time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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