We recently published an article titled Jim Cramer on Super Micro Computer and Other Stocks. In this article, we are going to take a look at where Accenture plc (NYSE:ACN) stands against the other super micro computer stocks.
As earnings season kicks off, Mad Money’s host, Jim Cramer reminds investors that bad news can often be factored into a stock’s price ahead of an earnings report. He cited the recent example of PepsiCo, which saw its shares decline before rebounding despite reporting a revenue miss.
Cramer highlighted that when a stock has already faced significant sell-offs leading into a quarter, it is challenging for it to drop further unless the results are exceptionally poor. “This is something you need to keep in mind as we head into earnings season,” he advised, emphasizing the market dynamics at play.
Cramer also expressed his disagreement with the Department of Justice’s exploration of a potential breakup of Google. He argued that such companies play a vital role for consumers, businesses, and the U.S. economy. Acknowledging the power of major tech firms, Cramer pointed out that their substantial customer bases and immense financial resources provide them with advantages that are essential for success.
He went on to say that these companies have become the envy of nations, especially considering that many countries invest heavily in nurturing their own national champions. In contrast, Cramer questioned the approach taken in the U.S., emphasizing the need for capital to foster growth.
“The best companies we have, the best companies in the world, we’re dealing with companies that have done amazing things for the American people, and yet they’re vilified by the Justice Department’s antitrust division, [and] of course, the Federal Trade Commission. Think about it.”
He warned that if the courts side with the DOJ and the FTC, consumers might not benefit as expected. Cramer explained that undermining these companies could open the door for foreign entities, particularly those backed by government subsidies, to fill any gaps left in the market.
“Believe me, if the courts agree with the Justice [Department] and the FTC, let me tell you something. Here’s what’s going to happen. Your prices ain’t coming down, they’re going up. We hurt these companies too much and we don’t have to worry, the PRC will come in with something subsidized by their government that will happily step in the void.”
He challenged the perception that wealth generated by these tech giants is solely hoarded by executives, asserting that investors also stand to gain. He stated:
“You could own the stocks right alongside them. In fact, as I tell CNBC Investing Club members daily, you should…I don’t know what will happen when the Biden administration runs its course, but I gotta tell you, I certainly won’t miss the ruthless prosecution and hectoring of Big Tech…The American government [is] so upset at the power of these companies that it’s insisting the tech titans should simply be less good. To which I say, good for who? Good for what? Certainly not us…Bottom line, I find this endless string of government investigations wrong-headed, pointless, and frankly, even anti-American.”
Our Methodology
For this article, we compiled a list of 10 stocks that were mentioned by Jim Cramer during the lightning round of his episode of Mad Money on October 9. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 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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Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 68
Recently, during a lightning round, Cramer highlighted the company praising their strong relationship and effective integration services. He believes the stock is a great investment opportunity at this time.
“That’s one of Jensen Huang’s go-to. Nvidia and Accenture are having a fantastic relationship, doing a terrific job. A lot of companies, indeed, they call Accenture and say how do we get integrated? And then they do it. They just really are good. I think Accenture is a great buy here.”
Accenture plc (NYSE:ACN) is a global professional services firm that specializes in strategy and consulting, technology, and operations. The company has a range of offerings, including but not limited to, application services and intelligent automation.
On October 2, Accenture (NYSE:ACN) and NVIDIA announced an expanded partnership, which will include Accenture’s formation of a new NVIDIA Business Group aimed at accelerating AI adoption among enterprises.
The partnership is particularly significant given the surging demand for generative AI, which contributed to $3 billion in the company’s bookings for the last fiscal year. The new group will support clients in establishing foundational capabilities for agentic AI through its AI Refinery, leveraging the complete NVIDIA AI stack to innovate in areas like process transformation and AI-driven simulations.
Additionally, Accenture (NYSE:ACN) is set to introduce the NVIDIA NIM Agent Blueprint, a tool designed for simulating virtual robot fleets. The blueprint incorporates NVIDIA’s Omniverse, Isaac, and Metropolis software, empowering industrial firms to develop autonomous, robot-operated facilities.
The company plans to implement these advanced capabilities at Eclipse Automation, a manufacturing automation subsidiary. The initiative is expected to advance operational efficiency, achieving design timelines that are up to 50% faster and reducing cycle times by 30% for its clients.
Overall ACN ranks 1st on Jim Cramer’s list of super micro computer and other stocks to buy. While we acknowledge the potential of ACN 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 ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
