In this piece, we will look at the stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer continued to share his thoughts on Monday’s stock market fallout from China’s DeepSeek AI models. For those out of the loop, DeekSeep wrought havoc on markets because it claimed to have developed AI models similar to OpenAI’s o1 and other platforms at a fraction of the cost. Even though the precise details about the cost of developing these models remained uncertain, investors jumped the gun and ended up evaporating a trillion dollars of value from stocks exposed to data center spending.
The hardest hit stock by the fallout was Wall Street’s favorite AI GPU firm. Investors exited their positions as they concluded that its GPUs might not be demanded in the quantities that they had previously assumed. This came despite CEO Jensen Huang’s prior assertions that even if AI demand was tepid, his firm would nevertheless benefit from the world’s data centers upgrading to accelerated computing platforms.
Accelerated computing is a key topic of discussion in computer science and semiconductors. Semiconductors, or chips, are fabricated with minute circuits that are nanometers in dimensions. This introduces physically driven limits to their production and limits the ability of newer Central Processing Units or CPUs to improve performance over predecessors.
To overcome these limitations, software engineers rely on graphics processing units, or GPUs through accelerated computing. When Cramer’s co-host David Faber asked him if accelerated computing was the present and the future, he agreed and shared “Yes it is, and I would tell you they [the GPU company] still have a tremendous lead.” Cramer then wondered whether China was an existential threat to the GPU company as it demonstrated methods to eke out more performance from fewer chips. Cramer commented “Is China an existential threat to them? What China says is that maybe you should pause.”
Amidst this uncertainty, the CNBC host advised users to keep in mind that some of the biggest entrepreneurs in the world were committed to spending billions of dollars for the GPUs. According to him “If Larry Ellison and Mark Zuckerberg and presumably Elon Musk are all buying the highest-end chips, do they not have knowledge about what’s going on in China? I think that’s fanciful. I think they had tremendous knowledge.”
Cramer also linked President Trump with the sentiment around the GPU company. According to him:
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.
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 29th, and in his Morning Take from his Investing Club morning meeting.
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).
9. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders In Q3 2024: 32
Nucor Corporation (NYSE:NUE) is one of the largest steel companies in America. Due to an overall sluggishness in the industrial and construction markets, the firm has not performed well lately. Nucor Corporation (NYSE:NUE)’s shares are down by 32.6% over the past year, with the decline also influenced by low steel prices. Steel companies, and Cramer, have attributed the drop to cheap Chinese steel flooding the market. In his latest remarks, Cramer shared additional details from Nucor Corporation (NYSE:NUE)’s about this issue:
“I had the Leon Topalian yesterday, he’s the CEO of Nucor, the country’s largest steel producer. The tariffs will be real. He believes that the Chinese will be shut down. It’s coming in from Canada and Mexico. And it will be a halcyon time. He is seeing a level of optimism among his customers which amounts pretty much everybody. That is surprising him. And it is meaningful to his numbers. Optimism.”
“Talk about reshoring. One of the things I really liked about Leon, he says, bring it on. We want reshoring, but we will go up against any steel company. One of the key things, they bought a company that makes steel that goes into warehouses.”
8. CAVA Group, Inc. (NYSE:CAVA)
Number of Hedge Fund Holders In Q3 2024: 32
CAVA Group, Inc. (NYSE:CAVA) is a restaurant company that owns its namesake establishments. Cramer has expressed cautioned optimism about the firm in his previous remarks. CAVA Group, Inc. (NYSE:CAVA)’s shares are 188.6% over the past year as they have been driven by a unique Mediterranean menu and careful price management to ensure that inflation-weary customers do not leave it. Previously, Cramer shared that it was possible that CAVA Group, Inc. (NYSE:CAVA) could grow to become as valuable as Chipotle. Here are his latest remarks for the firm:
“I’m seeing some definite things that interest me. If you walk through value at a price, . . . I’ve got CAVA tonight. Value at a price is winning. . . .And that’s something that I’m very excited about. Because one of the things that we’ve been concerned about, David, you know this, is inflation. And yet, when you look at the entire inflation beaters, which are companies that offer you a value at a premium. It’s working. Very interesting.”
“Yes and uh, it’s a terrific place. Mediterranean, this again, it’s that premium value.”
7. Brinker International, Inc. (NYSE:EAT)
Number of Hedge Fund Holders In Q3 2024: 41
Brinker International, Inc. (NYSE:EAT) is a casual dining restaurant firm that operates Chilli’s and Maggiano’s restaurants. A pocket-friendly restaurant chain, the firm has benefited from inflation-weary customers flocking to its doors. Brinker International, Inc. (NYSE:EAT)’s shares are up by 342% over the past twelve months. The stock soared by a whopping 16% on Wednesday after the firm Q2 EPS of $2.80 nearly doubled analyst estimates of $1.56. Cramer mentioned Brinker International, Inc. (NYSE:EAT) within the context of a broader rally in value stocks that he’s excited about:
“I’m seeing some definite things that interest me. If you walk through value at a price, look at Brinker today, symbol EAT.”
“I’ve got Brinker tonight, and it’s probably up maybe the most of any stock. . . I urge people to watch Brinker, because that’s Chilli’s. And it’s fantastic. They’ve got a really good margarita for a really good price. . . .This is Kevin Hochman. Sometimes you need a genius at the top, and we have one in Chilli’s, also known as Brinker, symbol EAT.”
6. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders In Q3 2024: 49
Prologis, Inc. (NYSE:PLD) is an industrial real estate firm that operates primarily in the warehousing and logistics industries. As a result, its business depends on robust performance on a broader economic front. Prologis, Inc. (NYSE:PLD)’s shares are down by 3.74% over the past twelve months, and the performance would have been worse if not for a 17.6% gain since January 10th. The shares are rising because of a strong Q4 earnings report which saw Prologis, Inc. (NYSE:PLD)’s funds from operations (FFO) of $1.50 beat analyst estimates of $1.30. The firm has also seen positive analyst coverage, with analysts from Baird and UBS raising their share price targets. Here’s what Cramer said about Prologis, Inc. (NYSE:PLD):
“We’re not talking enough about Prologis, the largest warehouse company which caught a bottom last week. A bottom in one of the industries that we were so down about, which is warehouse. Now we’re just focused on data center on how weak they have to be. . . “
5. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders In Q3 2024: 52
Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the largest cruise ship operators in America. The firm, like several of its peers, closed 2024 on a strong note. Royal Caribbean Cruises Ltd. (NYSE:RCL)’s shares are up by 115% over the past year on the back of several catalysts. For starters, the company grew its revenue by 17.8% and 13% in Q3 and Q4. For the full year, Royal Caribbean Cruises Ltd. (NYSE:RCL) aims to earn a midpoint of $14.50 in EPS which is higher than analyst estimates of $14.1. Cramer commented on Royal Caribbean Cruises Ltd. (NYSE:RCL) in the context of a broader set of value stocks that are doing well:
“I’m seeing some definite things that interest me. If you walk through value at a price. . . Royal Caribbean, yesterday. . . . . Value at a price is winning. And that’s something that I’m very excited about. Because one of the things that we’ve been concerned about, David, you know this, is inflation. And yet, when you look at the entire inflation beaters, which are companies that offer you a value at a premium. It’s working. Very interesting.”
4. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders In Q3 2024: 54
Carnival Corporation & plc (NYSE:CCL) is a cruise ship company whose shares have lagged peers over the past year but are nevertheless substantially up. During this period, the stock has gained 71% as the firm has benefited from a record $7 billion of customer deposits for 2025 and post record occupancy and price estimates for the year. Throughout 2024, Carnival Corporation & plc (NYSE:CCL) regularly raised its profit forecasts, which lent the shares strong momentum. It is part of a broader group of value stocks that have caught Cramer’s attention lately:
“I’m seeing some definite things that interest me. If you walk through value at a price,. . . . Um, Carnival. Value at a price is winning. And that’s something that I’m very excited about. Because one of the things that we’ve been concerned about, David, you know this, is inflation. And yet, when you look at the entire inflation beaters, which are companies that offer you a value at a premium. It’s working. Very interesting.”
3. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders In Q3 2024: 64
ASML Holding N.V. (NASDAQ:ASML) is the only company in the world capable of manufacturing high-end EUV chip manufacturing companies. Its shares ended the DeepSeek selloff 5.8% lower, but in a classic illustration of how the stock market can change in the blink of an eye, recovered the losses just two days later. On Wednesday, ASML Holding N.V. (NASDAQ:ASML)’s shares soared by 7.9% after its bookings touched a whopping €7.09 billion which was more than 2x higher than analyst estimates of €3.99 billion. Commenting on ASML Holding N.V. (NASDAQ:ASML)’s European shares, here’s what Cramer shared about the events:
“But ASML-F does not say good things. It says bad things. Because what it says is look there’s a lot of equipment being used, the more equipment they use, again, we have more is less. So the whole world is kind of coalescing upon the idea that NVIDIA is not as special as we thought. And that’s what I’m trying to figure out.”
2. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders In Q3 2024: 66
T-Mobile US, Inc. (NASDAQ:TMUS) is a well-performing telecommunications carrier. Its shares have gained 45% over the past year primarily on the back of strong performance by its 5G business. T-Mobile US, Inc. (NASDAQ:TMUS)’s 5G packages allowed it to add 865,000 new postpaid subscriptions during the third quarter. The firm’s shares soared by 6.3% on Wednesday after its fourth quarter saw the firm add a whopping 903,000 postpaid additions due to its 5G packages. Cramer’s comments about T-Mobile US, Inc. (NASDAQ:TMUS) were in the context of Apple’s slow smartphone sales:
“The only guy who’s really doing well, it’s selling higher end phones is this guy T-Mobile. So, Mike Sievert.”
1. CrowdStrike (NASDAQ:CRWD)
Number of Hedge Fund Holders In Q3 2024: 74
CrowdStrike (NASDAQ:CRWD) is a software-as-a-service firm that provides cybersecurity services. It was at the heart of one of the worst outages in recent history last year when troubles with a software update led to millions of computers going offline worldwide. Yet, CrowdStrike (NASDAQ:CRWD)’s shares have gained 31% over the past year and are up by 15% over the levels they were trading at before the dip caused by the outage led the stock to tank by 35% over the coming days. Cramer mentioned CrowdStrike (NASDAQ:CRWD) during his Morning Take from his Investing Club morning meeting:
“The biggest winner yesterday was cyber. And I spoke with George Kurtz, which was Crowdstrike. And he won the award for this single best stopping of any sort of ransomware. And I know that, it’s all on our minds, I think that the Chinese, as people know maybe using this DeepSeek as a way to be able to get into our phones and that led to a surge in cybersecurity. And we were right to have two cybersecurity companies that are leaders in the market.”
CRWD is a stock Jim Cramer recently talked about. While we acknowledge the potential of CRWD 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 CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
