We recently compiled a list of the Jim Cramer Discussed These 15 Stocks Recently. In this article, we are going to take a look at where KLA Corporation (NASDAQ:KLAC) stands against the other stocks.
Jim Cramer opened Monday’s Mad Money episode with the observation that CEOs gathered at the NFL’s Super Bowl game weren’t just there for football. They were there to talk business, politics, and the economy. According to Cramer, their conversations revealed what’s truly shaping corporate America’s mindset right now, with the biggest one having to do with the current U.S. President:
“Nobody can figure out Donald Trump. These CEOs are baffled… They like that he’s attacking the federal bureaucracy, but they don’t understand why Elon Musk is wasting time on the small stuff.”
He also noticed that they appear more relaxed, confident and bullish under the new regime, compared to the previous one under Biden.
“There’s been a shocking amount of new business going on… CEOs no longer feel like the government is out to get them. Even Democratic donors can’t believe how disrespected they were by the Biden White House.”
He also pointed out that all CEOs think Wall Street valuations are stretched, although Cramer is still bullish.
“They almost all think the stock market’s too high, but their own stocks are too low. When I tell them the market’s actually undervalued and I like their stocks, they nod. But they think I’m a dreamer.”
Finally, of course, the big theme was around Trump’s tariffs and their impact on the markets.
“They all hate Trump’s tariff plans. These CEOs think they’re disorganized, don’t make sense, won’t raise money, and are terrible for business. They’re free traders at heart and totally baffled by Trump’s agenda.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, 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).
The inner workings of a semiconductor manufacturing facility, neon hued machines humming with activity.
KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 58
Discussing KLA Corporation (NASDAQ:KLAC), Cramer highlighted the company’s critical role in the semiconductor industry:
“Regular viewers know I’m a huge believer in the AI revolution, and aside from Nvidia, there are winners that stay out of the headlines. KLA is one of them. It’s the brains behind a lot of what you hear when you talk about semiconductor companies.”
KLA Corporation (NASDAQ:KLAC) provides process control and yield management solutions for semiconductor manufacturing. Their advanced inspection and metrology systems are essential for chipmakers aiming to expand production, especially for high-end AI-driven chips.
Cramer emphasized how KLA bounced back after the recent “Deep Seek” scare, which temporarily drove the stock down:
“This company reported an impressive set of results at the end of January, and upbeat guidance for the current quarter has helped the stock recover after it got hammered by the Deep Seek scare. But those numbers were incredibly misleading, and I think this could be a great buying opportunity.”
Cramer also pointed out KLA’s resilience during a period of heightened geopolitical tensions and export controls:
“People think we don’t make anything in this country, but KLA proves them wrong. They make the most sophisticated equipment in the world and export 88% of their products. This is where the real intellectual property resides—this is what we do best in America.”
With strong fundamentals, continuous innovation, and a dominant position in semiconductor manufacturing, Cramer views KLA as a stock worth holding for the long term. As he put it:
“We want this to be the stock you put away in the drawer. No drama, just steady growth.”
Overall KLAC ranks 12th on our list of the stocks Jim Cramer discussed recently. While we acknowledge the potential of KLAC 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 KLAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
