We recently published a list of 13 Stocks Jim Cramer Recently Talked About. In this article, we are going to take a look at where Booz Allen Hamilton Holding Corporation (NYSE:BAH) stands against other stocks that Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, recently discussed how major capital expenditure (CapEx) commitments from top tech companies have been received by the market, especially in light of the introduction of DeepSeek. According to Cramer, investors had initially embraced these significant AI investments, with many tech giants committing large sums toward advancing artificial intelligence.
One such important venture was Stargate, an AI infrastructure project unveiled at the White House on January 21st, the first full day of Trump’s presidency. He added:
“They’re spending a hundred billion upfront and could go up to $500 billion over the next four years. Now some of them question whether these companies even have that kind of money, but hey, you know who didn’t care? I mean Wall Street… Now, something big changed in recent weeks though, and that was the arrival of DeepSeek.”
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Cramer noted that DeepSeek, the Chinese generative AI tool, has demonstrated performance nearly on par with the top U.S. AI systems, but at a fraction of the cost, using far less hardware. He highlighted that although DeepSeek was launched in 2024, it only caught the attention of Wall Street and Silicon Valley in mid-January 2025 after a Chinese quant hedge fund released a white paper detailing the technology’s creation. The paper’s release on January 20th brought DeepSeek into the spotlight, and the market reacted strongly, triggering a significant tech sell-off.
“The collective acts about DeepSeek caused a huge nasty tech sell-off… The still unanswered question that DeepSeek has forced investors to ask is whether or not developers of AI applications still need to spend huge amounts on infrastructure in order to get the best results.”
Cramer mentioned that despite this uncertainty, the big tech companies have maintained their capital expenditure forecasts, and so far, they have not been penalized for sticking to these predictions. Cramer pointed out that these companies do not appear to be taking DeepSeek’s impact seriously.
“Bottom line though, we’ve gone pretty quickly from a world where major investments in AI infrastructure are cheered, I mean, literally cheered by investors to a less certain world where it seems that the investors don’t like it and are starting to get skeptical about some of these big spending commitments. Now that’s a huge change, people, and if it continues this way, we might need to rethink our top picks and tech going forward.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 5. 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).
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Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Holders: 32
When a caller asked about Booz Allen Hamilton Holding Corporation (NYSE:BAH), Cramer said:
“I think that there are a lot of people fleeing this stock because of DOGE and I think that they think that this is somehow going to be front and center to the problem. I don’t think that’s the case. I think it’s gonna be the, the big military contractors that they’re really gonna go after. I’m, I’m with you on this one.”
Booz Allen Hamilton (NYSE:BAH) provides consulting services in areas like AI, machine learning, data science, cyber services, and digital solutions to help improve business and mission outcomes.
Polen Capital stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its Q4 2024 investor letter:
“The most significant detractors from relative performance in the quarter were Booz Allen Hamilton Holding Corporation (NYSE:BAH), TopBuild, and Hamilton Lane. Booz Allen Hamilton faced pressure during the period, not due to fundamental business weakness but rather concerns surrounding the Trump administration’s proposed Department of Government Efficiency (DOGE). Led by Elon Musk and former Republican presidential candidate Vivek Ramaswamy, DOGE has been mandated to curtail government spending, including payments to government contractors like Booz Allen Hamilton, which derives nearly 100% of its revenues from the U.S. government. While we view these concerns as more noise than reality, we are monitoring developments closely and will react accordingly.”
Overall, BAH ranks 7th on our list of stocks that Jim Cramer recently talked about. While we acknowledge the potential of BAH 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 BAH 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.