Jim Cramer Says Gap (GAP) Deserves to Trade ‘Much Higher’

We recently published a list of Jim Cramer Was Talking About These 10 Stocks Amid Trump’s Trade Wars. In this article, we are going to take a look at where Gap Inc (NYSE:GAP) stands against other stocks that Jim Cramer was talking about amid Trump’s trade wars.

Jim Cramer in a latest program on CNBC urged investors to start accepting the reality of the new economic system under President Trump and said the new tariffs will result in higher prices and more volatility. Cramer said Trump does not “care” about stock prices or inflation and wants to punish the country’s trading partners.

“Yes, I want this over. Yes, I want clarity. I want some sense of how this can all end, but that makes me a fool like the rest of us. We keep thinking that’s the point. That’s how… that’s not how Trump sees it. Here is the point: we should simply be looking at companies that cater to small- and medium-sized businesses that can’t be hurt by tariffs. We need to accept a higher level of inflation because it’s coming. We should take our out some money and put it on the sidelines, betting that this will end someday, even if we don’t know when. But right now, we have to get with the program and the president. The program is taking down our trading partners and hurting bottom lines all over the place. He doesn’t care. He demonstrated that tonight. So you better get used to it.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer was talking about over the past few weeks. With each stock, we have mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Jim Cramer Says Gap (GAP) Deserves to Trade ‘Much Higher’

Gap Inc (NYSE:GAP)

Number of Hedge Fund Investors: 39

Jim Cramer in a latest program on CNBC praised Gap Inc (NYSE:GAP) results and said it’s one of the top stocks to buy in the retail industry.

“These are all almost double what people expected in some cases. Gap, the flagship, more than doubled. A lot of people say, “Well, wait a second, is it going to make any money?” The tariffs—only 11% of its goods are made between Mexico and China. This man (CEO Richard Dickson) has taken this company, came on first and said, “Listen, I got to fix the balance sheet.” Well, he sure has. He’s got 2.6 billion in cash, got a 3% yield. This deserves to trade much higher. Somehow, it dropped. If you take a look at a chart of about maybe three months, you’ll see this thing has just cascaded lower for absolutely no reason whatsoever. This is the stock to buy in retail.”

Overall, GAP ranks 5th on our list of stocks that Jim Cramer was talking about amid Trump’s trade wars. While we acknowledge the potential of GAP, our conviction lies in the belief that 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 GAP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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