Jim Cramer, the host of Mad Money, recently discussed the impact of President Donald Trump’s first few weeks in office on the financial markets. Cramer pointed out that while some investors had expected severe tariffs under Trump’s administration, many have begun to believe that these expectations may be exaggerated.
According to Cramer, Wall Street initially became excited about a potentially more flexible approach under Trump. Investors were concerned that Trump might take a hard stance against Mexico and Canada, but as the situation developed, it became clear that his actions would not be as extreme as initially feared. He added:
“Before taking the White House, he talked about putting 25% tariffs on our two longstanding trading partners immediately but then when the America First Trade policy memo came out, we saw that the administration wants to study the situation.”
READ ALSO Jim Cramer’s Thoughts on These 7 Stocks and Jim Cramer Looked At These 7 Stocks Recently
Cramer remarked that although Trump had made bold statements about renaming the Gulf of Mexico to the “Gulf of America,” his actual policies have been more tempered. Cramer noted that if Trump can find someone in Canada willing to negotiate, he would pursue that, and he’s already receiving business-like responses from Mexico’s president, Claudia Sheinbaum. He added:
“Again, the rhetoric was hot, but the reality was cool. Sure there are some real harsh words for a lot of the environmental rules and regulations and grants that President Biden jammed through the last four years. Trump has no time for these.”
In addition to trade policies, Cramer also commented on Trump’s stance regarding environmental regulations. Trump has made it clear that he has no patience for many of the environmental rules and grants implemented during the previous administration. Cramer pointed out that Trump views oil and gas as essential to America’s economic strength, believing that increased drilling and production would lead to lower oil prices and enhance U.S. power abroad.
However, Cramer acknowledged that it’s unclear how much influence Trump can exert over the oil and gas industry. He emphasized the need for more infrastructure, particularly pipelines, to facilitate both domestic and international distribution of natural gas. While oil executives are aware of the political pressure to increase production, they also know that any loss of discipline in response to presidential demands could lead to plummeting prices and financial losses.
Jim Cramer Looked Closely At These 10 Stocks
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 21. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Looked Closely At These 10 Stocks
10. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 7
When a caller asked Cramer about Rigetti Computing, Inc. (NASDAQ:RGTI), he said:
“Okay, it’s a quantum stock. These are short squeezes. If you want to participate in a short squeeze, this is better than most. How about that?”
Rigetti (NASDAQ:RGTI) designs and develops quantum computers and superconducting quantum processors, providing quantum computing services through cloud-based platforms, along with quantum software and cloud integration assistance. In December 2024, Cramer mentioned the company as he expressed his thoughts on quantum computing stocks and said:
“Okay, so that’s quantum computing. They are all the same. I mean, no, of course, the actual companies aren’t the same, but the stocks are. They’re all parabolic. If you come in, you have to understand, at this point, it is pure speculation. It can keep going up, but they’re all trading the same way. Anything that’s quantum computing and mostly it’s related to how it’s going to help healthcare. I am not a believer at this stage. I wish I’d caught them earlier.”
9. Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of Hedge Fund Holders: 12
Cramer called Clover Health Investments, Corp. (NASDAQ:CLOV) a speculative stock and noted that the company loses money.
“Okay, that is just a total spec. I mean the kind of stocks that we talk about in healthcare I think are much better than this. This company loses a lot of money. I’m not recommending stocks on Mad Money of companies that lose a lot of money.”
Clover (NASDAQ:CLOV) offers Medicare Advantage plans throughout the United States. Additionally, the company provides Clover Assistant, a cloud-based platform that helps physicians detect and manage chronic diseases early while offering personalized, data-driven insights for patient care. Back in October 2024, Cramer mentioned the company and said:
“Oh, man… I just don’t want to go there. I know that it’s a good company, but I just don’t want to hurt anybody. I’m sorry.”
8. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 18
Cramer expressed reluctance about Toyota Motor Corporation (NYSE:TM) as he explained:
“Look, I like Toyota more than I like many of the American automakers, but again, it’s still in the auto business and that’s a real tough neighborhood and I care about the neighborhood.”
Toyota (NYSE:TM) designs, manufactures, and sells a wide range of vehicles, including cars, trucks, and buses, under the Toyota and Lexus brands, along with related parts and accessories. Cramer’s recent comment was starkly different from what he said about the company in 2023, which is:
“I’ve been looking at Toyota and thinking, ‘why don’t I recommend that stock’? It just goes up and up…I think it’s a really good call. Buy Toyota.”
Since his comment in November 2023, Toyota (NYSE:TM) stock has seen a measly gain of less than 1%.
7. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 31
When asked about Dow Inc. (NYSE:DOW), Cramer suggested holding on to the stock.
“I don’t want to sell it here, we might be at some sort of trough at this very moment in Dow pricing. So, I think you should hold on to the stock.”
Dow (NYSE:DOW) offers a variety of materials science solutions across different industries through its subsidiaries, offering products including ethylene, propylene, coatings, and adhesives. Discussing the company in December 2024, Cramer said:
“This is a tough one. I think that Jim Fitterling does a great job, but it needed China. It needs pricing to go up, it needs a much stronger economy. It yields 6.29. A lot of people bought it in the ‘50s thinking that it wouldn’t break down through the 5% level. If you don’t have growth and you sell at 21 times earnings, you’re not gonna be able to do anything. At these prices, I’m willing to put a position on but understand that the yield turned out to be not the kind of protection that we thought.”
6. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 40
Cramer mentioned Cleveland-Cliffs Inc. (NYSE:CLF) during the episode and here’s what he had to say about the company:
“No… I mean, a lot of the commodities I think can bottom here. This stock has come down, down, down, down, down. I cannot countenance selling Cleveland Cliffs at this level.”
Cleveland-Cliffs (NYSE:CLF) is a producer of flat-rolled steel in North America, offering a variety of steel products. Cramer has been recently in favor of CLF as he commented a few days ago:
“Look, I think Cleveland-Cliffs is so cheap now when you get the tariffs. The only reason they’ve really been crushed is because of all that Chinese dumping and that’s going to end with the tariffs because that’s what they’re going to really police. I like Cliffs. Of course, I think Nucor is a better stock.”
5. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Hedge Fund Holders: 42
Cramer mentioned that Elanco Animal Health Incorporated (NYSE:ELAN) is not his favorite as he commented:
“Not my favorite. I do think that the pet… Look, I like Chewy. I know that’s a pedestrian way to look at things, but I think that Chewy is the better bet for this group.”
Elanco (NYSE:ELAN) develops and markets a variety of products for both pets and farm animals, including disease prevention, therapeutics, vaccines, and nutritional health solutions under several well-known brands for conditions affecting pets, poultry, aquaculture, ruminants, and swine. In June 2024, Cramer talked about the top pet stocks and mentioned ELAN among them.
“In a tougher market, we need secular trends that can triumph in any economy, which is why I am circling, indeed, back, after absence for a long time, to the pet trade. Chewy and Elanco are already on fire, but if you want a less direct pet food play, I’m feeling darn right optimistic about J.M. Smucker.”
Cramer then noted that Elanco (NYSE:ELAN) is a spin-off of pharmaceutical giant Eli Lilly and has several promising treatments in development. Since his comment in 2024, ELAN stock has declined more than 32% while CHWY has gained over 29%.
4. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
Cramer called ASML Holding N.V. (NASDAQ:ASML) “remarkable” and suggested to invest in the stock. He said, “I think ASML is a remarkably great company and I think you should buy it. Let me tell you, I also like Lam Research.”
ASML (NASDAQ:ASML) designs and manufactures advanced semiconductor equipment, including lithography, metrology, and inspection systems, offering solutions for chipmakers to produce a wide range of semiconductor technologies and providing customer support and system upgrades. In October 2024, Cramer mentioned the company and explained:
“Very important technology, which is why ASML when it gave a horrendous forecast yesterday, something it did actually by mistake, they weren’t supposed to, they got the date wrong for the release. Lots of investors figured that it must be game over for the semiconductor stocks themselves… It was natural to assume that such a huge shortfall must be the result of the weakness across the board from all of its clients… ASML’s relatively unknown… That just made it even more mysterious and thus inscrutable terrifying… Doesn’t matter that ASML said they’re still getting tons of orders from companies that make AI-related chips. It was the one bright spot they had. No one believed anything was any good here because the guidance was so horrible.”
Ithaka Group stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q4 2024 investor letter:
“ASML Holding N.V. (NASDAQ:ASML) is a leading supplier of photolithography equipment used in semiconductor manufacturing, enabling the production of microchips at ever-smaller line widths. The company’s cutting-edge technologies, particularly extreme ultraviolet (EUV) lithography, play a critical role in producing the most advanced chips for applications like smartphones, data centers, and AI. ASML’s systems are vital for the semiconductor industry, helping to push the boundaries of Moore’s Law and drive innovation in electronics. Weakness in ASML’s stock was due to their 3Q24 earnings announcement, in which the company posted a weak quarter while also cutting forward guidance. Fears surrounding lithography demand, the China/US trade war, and problems at the major fab plants sent the stock tumbling.”
3. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Cramer mentioned that CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock will gain from here and recommended buying the stock.
“I think CrowdStrike is going up big from here. I think that [the] cybersecurity business is terrific. I think that they are just now beginning to play offense after that glitch that occurred. I do think that this is the time to own CrowdStrike and to own what George Kurtz has built.”
CrowdStrike (NASDAQ:CRWD) is a cybersecurity company known for its Falcon platform, which provides various endpoint security solutions. In November 2024, Cramer mentioned the company and remarked:
“Hey, speaking of hating to lose the CEO of Palo Alto Networks, that’s Desh Aurora, and the CEO of CrowdStrike, that’s George Kurtz, are both extremely competitive. They know how to stop cybercrime better than anyone. I know it hurts our diversification efforts, but the Charitable Trust owns both these stocks because I’m a huge believer in cybersecurity and I’m not gonna be left behind by a great stock here. There’s so much crime happening online. These companies literally can’t handle all the business. Imagine that, I call that a high-quality problem.”
CrowdStrike’s (NASDAQ:CRWD) stock has gained more than 30% since its outage in July 2024.
2. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 95
When a caller mentioned that they have started building a position in The Progressive Corporation (NYSE:PGR), Cramer said:
“I hear behind the scenes over and over again that they are the most AI-related auto insured, the best at pricing. I salute you for going with Progressive.”
Progressive (NYSE:PGR) offers a wide range of personal and commercial insurance, including auto, home, and business coverage. In December 2024, Cramer noted that PGR was among the companies that hit $100 billion in market cap in 2024 and commented:
“Next we have Progressive. Now it’s up 60%. This auto insurer is known to use more AI in pricing than any other company… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Cramer was asked about Advanced Micro Devices, Inc. (NASDAQ:AMD) recently and he replied:
“Look, I think that it’s a great company. I do think that there’s a lot of people who believe that they will not be able to deliver on this quarter. I therefore am reluctant to get in ahead of the quarter and we did sell the stock a little bit higher for the Charitable Trust.”
Advanced Micro Devices (NASDAQ:AMD) is a semiconductor company known for its advanced processors and graphics technology used in PCs and data centers. In November 2024, Cramer shared that he was looking to buy AMD stock for his Charitable Trust, noting that the company had an exceptional quarter, with AI chip revenue expected to reach $5 billion, much higher than the $2 billion he would have anticipated a year or two ago.
However, he pointed out that traders were not focused on Advanced Micro Devices (NASDAQ:AMD) past performance but on future results, and while the company did well, it was not enough to fully satisfy market expectations. He added:
“Management guided for good revenues and good, but not good enough earnings. When you’re a high-rolling AI company in the same league as… Nvidia, you need to deliver Nvidia-style blast-offs. CEO Lisa Su didn’t give us a blastoff, it was fine, not special. Of course, the problem with the forecast is that AMD’s facing supply constraints, they literally can’t make enough chips to meet the demand. That’s a high-quality problem.
And you know, the forecast was like, here and there. Think of this company as a B student that basically gave you an inline forecast right down the middle. That’s not enough. So the stock got us clock cleaned… The numbers were simply good, but not good enough given the expectations. So that’s why the stock dropped more than 10% to where I think we probably should be buying some for the Charitable Trust.”
While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that 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 AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
