In this piece, we will look at the stocks Jim Cramer recently discussed.
In a fresh appearance on CNBC’s Squawk on the Street, Jim Cramer commented in quite a bit of detail on artificial intelligence and AI PCs. AI, the technology that has caught the investing world by storm, has two facets. The first covers enterprise computing with cloud computing services such as Azure and AWS offering businesses new AI tools for their tasks. The second is the consumer end, dominated primarily via chatbots and services like the Chinese firm DeepSeek’s R1 and OpenAI’s o1.
Another aspect of AI that received quite a lot of attention last year was AI PCs. These computers use hardware designed to run artificial intelligence workloads. This hardware includes graphics processing units (GPUs) and neural processing units (NPUs), which means that their price tag is often higher than a standard computer.
On top of Cramer’s mind was a recent Morgan Stanley consumer survey report which analyzed consumer sentiment with respect to a super-cycle in AI-enabled products. The bank revealed that just 15% of the 400 respondents bought some of the products primarily because they wanted to access AI. The bank added that 60% of respondents inadvertently bought an AI PC and more than 60% shared that they would not pay extra for AI products.
Commenting on the research, Cramer started by sharing “I think the AI hardware super cycle Morgan Stanley piece is perhaps the most damming piece I’ve read.” According to him, the research was striking “Because there’s absolutely no evidence of a super cycle whatsoever.” The CNBC host shifted towards enterprise AI use cases and was appreciative of them. “I mean I think AI is very good when you listen to what Jamie Dimon [inaudible] to say, that AI is very good when you listen to what Marc Benioff has to say,” he outlined.
However, while AI has impressed business users, Cramer admitted to being wrong about consumer demand for AI PCs. “But the PC, I thought we were all gonna upgrade. And now we’re all in wait-and-see mode,” he shared. Cramer added that those he knew who have bought an AI PC “haven’t used it or there’s a button there and it doesn’t work.”
Yet, even though consumer interest in AI PCs might be lackluster, Cramer is still an AI believer. He revealed that “I use it [ChatGPT] every day.” One ChatGPT use case he likes is comparing drugs. “And you start at ChatGPT. You really do. And it’s very authoritative and it tells you who to go to. And I think it’s extraordinary. It’s an extraordinarily good product,” according to Cramer.
In fact, Cramer’s “on ChatGPT maybe five times before I come down here. Ten times before I do Mad Money. There’s nothing I don’t run through. Because I don’t want to make a mistake.” However, he did add that while ChatGPT is great, this doesn’t mean “that it’s not hallucinating.” Yet, Cramer still suggests “. . anyone use it before they buy a stock. It’s that good.”
His praise for ChatGPT isn’t the first time that Cramer’s shared opinions on AI. In a recent CNBC morning appearance, he outlined some enterprise AI use cases. Cramer shared:
“Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
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 January 23rd.
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).
13. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders In Q3 2024: 47
DuPont de Nemours, Inc. (NYSE:DD) is one of the largest chemical companies in the world. The firm’s stock remained flat in 2024 as it struggled with a broader industrial slowdown in the US and China. However, the shares didn’t close 2024 lower as DuPont de Nemours, Inc. (NYSE:DD) benefited from robust demand in the semiconductor industry due to AI. Its stock jumped by 6% in November after the Q3 report revealed a 13.4% jump in the electronics and business division. DuPont de Nemours, Inc. (NYSE:DD) is set to split into two firms, and Cramer commented on its earnings and the spin-off as he compared the firm to ailing industrial stock Honeywell:
“DuPont did not miss the quarter. It’s still not up. They were going to split into three, now they’re splitting into two, electric and chemicals and water.”
12. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders In Q3 2024: 55
Honeywell International Inc. (NASDAQ:HON) is another American industrial conglomerate. The firm is currently facing pressure from activist investor Elliot Management as supply chain disruptions have led the firm to miss quarterly forecasts. Ahead of last year’s US Presidential Election, Honeywell International Inc. (NASDAQ:HON)’s shares were flat as the year ended. Since the election, they have gained a modest 6% as analysts and investors weigh the spin-off’s prospects. Here is what Cramer said:
“Honeywell, you’ve got this split that Elliot wanted.”
“When they report the quarter. Now the last two quarters have been misses. So we’re scaling out of it for the club. Because I still think that as much as the parts could be worth more than the whole, you miss a quarter, it’s bad.”