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 Eli Lilly and Company (NYSE:LLY) 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).
An array of pharmaceutical pills with the company’s logo on the bottle.
Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders In Q3 2024: 106
Eli Lilly and Company (NYSE:LLY) is one of the most commonly discussed stocks on Cramer’s morning show. He interviewed the firm’s CEO David Ricks at the JPMorgan Healthcare Conference, and despite tepid financial performance, remains a fan of the stock. Cramer believes that not only are Eli Lilly and Company (NYSE:LLY)’s weight loss drugs better than rival Novo’s, but that the firm’s narrative in 2025 will also be shaped by drugs under development. His latest remarks also reflected this theme:
“One of the reasons you back out the dollar and you suddenly see some growth, uh, look I’m surprised that with the Mondelez, with some of these we stopped talking about GLP-1, and yet, Lilly’s doing quite well. The stock has been going up. I think there’s a bunch of new use cases coming up and there’s more, well it’s down today, but there’s more Mounjaro in the system. So you don’t just get directed to Wegovy by the doctors.”
“Well there’s so many, when I spoke with David Ricks whose the CEO, the number of trials going on, is shocking because it just seems to do so many different things that are good. I think that the pre-diabetes and pre-Alzheimer’s are going, the two I’m focused on now. I was focused on the heavy drinking one. People don’t talk about that but after we saw what the previous President’s Surgeon General was saying, which was the skull and crossbones on liquor, I mean heavy drinking’s going to be something you better get it under control. Look I’m waiting for the Humana’s of the world to say look if you drink heavily we’re not going to cover you.”
Overall, LLY ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of LLY 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. If you are looking for an AI stock that is more promising than LLY 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.
