We recently published an article titled Jim Cramer Looked Closely At These 10 Stocks. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other stocks Jim Cramer looked closely at.
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.
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).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
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.”
Overall AMD ranks 1st on our list of the stocks Jim Cramer recently looked at. While we acknowledge the potential of 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.