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 Exxon Mobil Corporation (NYSE:XOM) 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).
Aerial view of a major oil rig in the middle of the sea, pumping crude oil.
Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders In Q3 2024: 86
Exxon Mobil Corporation (NYSE:XOM) is one of the largest oil companies in the world. Its shares are up by a modest 3.91% over the past year due to multiple factors such as low natural gas prices that plagued the American industry in 2024. The stock is flat this year as Exxon Mobil Corporation (NYSE:XOM) lost all gains made after its fourth-quarter earnings saw its gas and diesel earnings drop to a stunning $323 million from the year-ago figure of $3.2 billion. Exxon Mobil Corporation (NYSE:XOM)’s shares tumbled by 2.5% following the earnings. Cramer maintained his muted stance about the firm:
“I think that people feel that Exxon is, it’s kind of like they’ve got the rosy hue ever since . . . . It’s almost like they’re considered to be the fast moving darling that understands carbon capture.”
“[on how XOM had performed well over the last few years] No, I’m just surprised. I thought it would reverse, I said that I’m wrong but I know that you’re not going to get hurt in. But that’s no reason to buy the stock.”
Overall XOM ranks 8th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of XOM 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 XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.