We recently published an article titled Jim Cramer Discusses These 10 Stocks & DeepSeek’s Limitations. In this article, we are going to take a look at where Caterpillar Inc. (NYSE:CAT) stands against the other stocks Jim Cramer recently discussed.
In the latest episode of CNBC’s Squawk on the Street, Jim Cramer couldn’t stop talking about the DeepSeek selloff, the AI models themselves, and how stocks are behaving after a trillion dollars of market value was wiped out on Monday. Cramer maintained that while DeepSeek’s ability to potentially reduce costs was impressive, it might not make the latest GPUs from Wall Street’s favorite AI GPU stock any less important.
After having done his research, the TV show host shared some uses of the GPU firm’s latest Blackwell chips that DeepSeek cannot use. According to him “Okay so here’s uses that DeepSeek can’t do. That you can do on Blackwell. Alright. Alright, multi-modal memory, spatial intelligence, physical actuation, vision, and touch. So those are the things that you need Blackwell for.” These are use cases that are involved in developing humanoid robots, and in a previous appearance, Cramer shared additional details.
“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.”
Another thing that he noted was that the gap left behind by institutional investors fleeing away from data center and GPU stocks on Monday was being filled by retail traders. Cramer maintained a strong position against daily traders. He shared:
“Well, I do know, I’ve been trying to pay attention to the myriad ETFs. And zero, zero day, they’re in control of the stock. And now that’s just. I mean I think those are the people, I urge those people to take the two points and [inaudible] Because that’s much more rigorous than whatever the hell they are doing. I think Jason Robins [CEO of a sports betting company] he runs a better operation than these clowns who are doing this stuff.”
Cramer wasn’t done commenting on the retail traders who are in it for daily profits. He shared “I mean look they let this happen because everybody wants to make a lot of money.” He believes that such trading is akin to gambling. “That’s, it is a bad thing. It is bad gambling. It’s like gambling on the line itself,” Cramer stated. He added “I bet the line’s gonna go from two to one. I bet that, if I, that if I create a new line, I’m going to do even better. That’s what these people are doing. And they should just go to [a sports betting platform], and have more fun, and lose less money!”
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 construction crew operating a hydraulic shovel during a nighttime project.
Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders In Q3 2024: 50
Caterpillar Inc. (NYSE:CAT) is one of the largest heavy equipment and industrial machinery companies in America. Its shares are up by a modest 23% over the past year as the overall industrial and construction environment has remained slow in the US. The shares surged by 10.7% after the November Presidential Election and added another 16% in the second and third weeks of January. However, Caterpillar Inc. (NYSE:CAT)’s shares soon lost momentum as they dipped by 3% after the firm warned that an uncertain economic environment could lead to a sales drop this year. However, Cramer thought the market read too much into Caterpillar Inc. (NYSE:CAT)’s earnings:
“I felt Caterpillar shouldn’t have been down as much. I think that Caterpillar had a good quarter.”
Overall CAT ranks 6th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of CAT 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 CAT 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.