In this piece, we will look at the stocks Jim Cramer discussed after the DeepSeek AI selloff.
In his appearance on CNBC’s Squawk on the Street aired before the day of the Federal Reserve’s latest interest rate environment, Jim Cramer shared how Federal Reserve Chairman Jerome Powell would have to fine-tune his remarks in line with President Trump’s sentiments about interest rates. The President made hard-hitting statements earlier this year when he stated that he would demand central banks worldwide reduce interest rates as oil prices were dropping.
Sharing his thoughts on the Fed chair, Cramer stated “Yeah, I think that, uh, Jerome Powell knows how to punt better than anyone I’ve ever seen. I mean, he’s, I just think he’s just not going to take the bait. I think he’s going to say listen we gotta see what happens.” Cramer stated that Powell would keep his options open because of the dynamic nature of today’s markets. After all, it was only last week that Wall Street’s favorite AI GPU stock was the most valuable company in the world. And now, it’s in third place.
Cramer outlined that “I think people are [inaudible] to recognize, that it’s not like we know everything. Things are so fluid.” He also linked the fluidity with investors’ urge to invest with President Trump’s every statement. “That first it’s the Iron Dome mention, I just talked about [the company that makes missiles for the Iron Dome], well [it] has this terrific drone killer system, which they’ve shot down a huge number of these.” Cramer added that while the President might want the “drone killer” as well, it doesn’t mean that the statement would mean to buy stock. He added “A lot of off-the-cuff comments, and you can’t react to all of them. So I think that Jay Powell would be best to say you know what, we have to wait and see.”
The Federal Reserve announced its latest interest rate decision today. As expected, the central bank kept rates unchanged, but the uncertainty in its statement meant that the flagship S&P index bled 0.8% while the broader NASDAQ index lost 1.1%. Investors were particularly spooked by the fact that the Fed’s latest comments didn’t include the usual inflation “has made progress” statement that had previously reassured them that progress on the inflationary front was occurring and could lead to future rate cuts. In other words, the door is now open for the central bank to raise rates further this year if need be, despite an adamant President who believes otherwise.
Cycling back to stocks, Cramer also commented on the AI GPU firm and its latest Blackwell GPUs. Blackwell GPUs are the backbone of future AI data centers, and in his previous shows, Cramer has also commented on their potential to play a role in the humanoid revolution (For more details about humanoids, you can check out $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley)
Commenting on Blackwell and DeepSeek’s purported lower training costs, Cramer shared:
“Well, look, there’s no doubt about the cost is great for this. But if you’re gonna go forward and you’re gonna do what Jensen was talking about, which is anything physical, anything physical with Blackwell. It’s going to be better than what we do. I’m just saying that Jensen’s on a plane of his own. And that, if you have low commodity, Jensen’s got the three thousand dollar chip that can handle that. Was I shocked by this? No it was nice that they came up with such a low price.”
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 28th.
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. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders In Q3 2024: 54
United Airlines Holdings, Inc. (NASDAQ:UAL) is one of the top-performing airline stocks on Wall Street. Its shares are up by 157% over the past year primarily on the back of the firm benefiting from international travel and a stronger US dollar. However, Cramer also believes that there’s something deeper at foot at United Airlines Holdings, Inc. (NASDAQ:UAL). In a recent morning show, he interviewed the firm’s CEO and shared that as opposed to a cyclical grower, the airline appeared to be growing secularly which was remarkable. Yet, despite the fact that United Airlines Holdings, Inc. (NASDAQ:UAL) Q4 $3.26 in Q4 EPS beat analyst estimates of $3, the shares dropped by 2.31%. Cramer commented on the drop:
“[UAL and DAL] are haves. It’s a very fair statement.”
“Look United I thought had a great quarter, the stock went down [inaudible] they reported the great quarter.”
9. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders In Q3 2024: 54
Carnival Corporation & plc (NYSE:CCL) is another cruise ship operator that has performed well recently. Its shares are up by 68.6% over the past twelve months as it benefits from metrics such as a record $7 billion in Q3 customer deposits. The high demand indicated by these deposits has also provided Carnival Corporation & plc (NYSE:CCL) with strong pricing power. The firm’s fourth-quarter results saw it report 2025 occupancy and price estimates at a record high. Cramer mentioned Carnival Corporation & plc (NYSE:CCL) in connection with the broader cruise industry:
“Look I think a lot of people really misjudged that industry. . . . Look, Carnival’s no slouch. Norwegian Cruise, I happen to like . . . . . What people learn Carl, and I’ve spent a lot of time analyzing the industry, is it is such a bargain in an era of inflation. It’s just considered to be the best way to have a vacation. You know I just think that they are terrific. And everyone thinks, recognizes, that there are a lot of people who are snobs. Okay. The snobs don’t recognize that these things are great trips.” “I think it’s incredible and people have just misjudged the earnings power. And the earnings power is amazing.”
