We recently compiled a list of the Jim Cramer Discusses These 10 Stocks & Comments On OpenAI’s Valuation. In this article, we are going to take a look at where Apple Inc (NASDAQ:AAPL) stands against the other stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer continued to comment on the DeepSeek fallout. He shared that while the performance of the Chinese AI model was impressive, especially as it had managed to match models such as OpenAI’s o1, there were other factors to consider particularly when gauging the demand for high-end Blackwell GPUs. These GPUs are made by Wall Street’s favorite AI GPU firm, and Cramer is increasingly starting to tilt towards the fact that their true magic might lie in enabling the proper functioning of humanoid robots.
As for the stock, the CNBC TV host continued to assert that there is a large chunk of traders that do not properly understand the company. Cramer shared “I was in a bar last week, person to the right said I bought [the GPU stock] because of you. A person left said I bought [the GPU stock] cause of you.” He added that in response he asked does “anyone know what [the GPU stock] does?” Yet, instead of outlining the firm’s business model, “They said yeah! It’s something that you recommend!” he added.
While the GPU company might have lost close to $600 billion in value during the selloff, another AI news caught Cramer’s attention. This was a Reuters report that claimed that OpenAI was seeking to raise $40 billion in capital on a $400 billion valuation. When asked how such valuation was possible, particularly after Monday’s havoc, Cramer replied “So I was just being like you. It is, without a doubt, a time not of inflation, but of a recognition.” He added that this ‘recognition’ is why he likes the GPU firm as well. So what is the recognition that’s got Cramer enamored? Well, according to him “it’s a recognition that it is a new industrial revolution. And anybody who’s in it is a worth lot more than the people that aren’t!”
He also sardonically targeted co-host David Faber and said “Look I’m sure that when they discovered the cotton gin, and you’re a weaver, you’re saying you know what, that’s ridiculous!” Not satisfied, Cramer continued “Remember the steam engine? Are you still liking the wheel and the pulley? Are you the wedge? You’re the wedge!”
Cramer also commented on the market moving higher during the day after the week’s devastation. He mentioned a couple of non-tech sectors that had particularly done well. In his words:
“I was surprised that there were a lot of areas yesterday that were very very good. And people were very focused obviously, on DeepSeek, but then there was a whole another group people were saying, you know what, healthcare really back. Uh, industrials. I’m looking at industrials, there’s something from [an industrial firm providing motion control products] yesterday that was really fabulous.”
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 31st.
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).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Holders In Q3 2024: 158
Apple Inc (NASDAQ:AAPL) is a household name known primarily for its iPhone smartphones. Cramer started his show by commenting on the firm in detail especially since he had spent most of his previous shows asserting that the market had expected Apple Inc (NASDAQ:AAPL) to perform poorly in its latest earnings. However, the firm’s $124.3 billion in revenue and $2.40 in EPS beat analyst estimates of $124.12 billion and $2.35, respectively. Apple Inc (NASDAQ:AAPL) also signaled a recovery in China, and here is what Cramer said:
“I do think that the best news that I felt was that where they have their Apple Intelligence. Their AI. Sales are up. Not, they don’t have it in China, and look they need a partner in China. We know that Xiaomi, Huawei they can have partners, they can use DeepSeek for all we know. But it does matter that when they have AI, things go better because then you don’t have to guide down the next quarter or two. And people felt that the big issue would be the forecast cut. There was no forecast cut. David, this installed base, 1.38 billion users, and you know, just phone users, 2.35 active devices, this is what everyone knows is their ace in the hole. And everybody keeps, the hedge funds keep thinking what’s the next iteration of the phone doing. And Tim cook is thinking, we have a lot of people who will buy more of our things. Whether it be service or whether it be the different parts that we all know, Mac, the earbuds. You know, by the way, um, the watch is crushing it.”
“They’re doing -1.7 on the watch. I’m regarding the watch. The watch is high gross margin, it’s health, anything health is doing well.”
“They’re [the analysts] saying it’s [the watch] bad, but when I talked to Tim Cook it was not at all clear that it was bad. I’m saying that’s the one everyone is worried about. And Tim Cook is not saying it’s bad. He’s saying healthcare is very strong.”
“Well, the data’s the data [on watch sales dropping].”
“You know, and, Tim Cook has got, is he Teflon? . . I think what is is he’s got the best product and I still think it’s a best product win situation.”
“I was trying to get Tim Cook to say in our interview that I do with Steve. . .that isn’t it true that we no longer just going uh newline, newline, newline and judging it, and that we’re actually blurring it by having these constant updates that you get overnight. And he said, no, no, there’s still going to be, it still matters tremendously. The 16 matters. The family of 16 matters. So there was nothing revelatory other than the fact that was fine. And everyone expected it to be not fine. And that, I think is because, AI is a spurt to buy more phones. And that, no one thought that. I think people just felt their AI is so so. But it’s not. AI, of course, they’re not paying for so it’s really a free ride that’s fabulous. Gross margins were up nicely.”
“[On whether analysts will change their downward revisions] I think that there’s too many people, who would, they have to do it quietly. They’ll look too stupid.”
“[On a high multiple] But I think look he’s talking about, Tim’s talking about India. I mean India is a real factor. I’m not saying that China is not. He’s never going to say that. But I think that lets say right now it came out. . . that Baidu has teamed up with Apple for the best AI. Then the people who are still shorted are betting against it they’re going to say alright I’ve had enough and then I think that the negative guys will have to come out. Right now they can say, you know what, it’s still got a very high multiple. And it’s thirty multiple and that’s really not what you get when you have this little growth. They say pretty much what this man to the left says. . . .How long does it have to be high before we just say you know what, maybe it’s better than Clorox. Maybe it’s better than Colgate. Maybe it’s better than Hershey.”
Overall AAPL ranks 4th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of AAPL 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 AAPL 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 is originally published at Insider Monkey.
