Jim Cramer Reacts to the Surprise Market Surge and Highlights 8 Key Stocks

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

In the context of escalating tariffs and U.S.–China tensions, Jim Cramer examined the production risk facing Apple Inc. (NASDAQ:AAPL). He argued that if Apple was given a long-term exemption or exit strategy, it could be a major blow to China while preserving Apple’s dominance. Here’s his analysis:

“Last I heard, they still make most of their iPhones in China. They do, and some sent to Vietnam, but there are people in the White House who think that’s just trans-shipment. Put some screws in from China, and then, you know, boom. So you have the regular part, and then the screws, you know. They’re trying to make a discussion right now about exemption and Apple. It would be devastating to the Chinese if they gave Apple a year long extension to be able to move away because then Apple wouldn’t be hurt and Apple would know it have to leave. And that point we get to 2000. I mean what I hear is engineers who are crucial to Apple’s development and making [inaudible] they don’t want to let them leave.

[…] I’m saying that if you gave them a glide path to get out, the Chinese would lose 2 million workers. That’s about how many it would be. Apple would not be hurt. Apple again would become prominent.”

AAPL is a stock 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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