Jim Cramer Says You Should Stay Away from These 7 Stocks

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1. Nutanix Inc (NASDAQ:NTNX)

Number of Hedge Fund Investors: 56

California-based Nutanix Inc (NASDAQ:NTNX) sells software for data centers and Cloud platforms. The stock has gained a massive 56% so far this year, and this performance is precisely why Cramer is staying away from the stock for now. In a latest program on CNBC, Cramer said that Nutanix Inc (NASDAQ:NTNX) is what the market “”wants right now” because it’s an enterprise software and Cloud platforms company.

“People can’t get enough of it,” Cramer said.

However, Cramer said that he has “too much discipline” to recommend the stock at “this level.”

Cramer might not be recommending Nutanix Inc (NASDAQ:NTNX) right now, but smart money investors are piling into Nutanix Inc (NASDAQ:NTNX) to ride the AI-powered boom in the software space. As of the end of the first quarter of 2024, 56 hedge funds tracked by Insider Monkey reported owning stakes in Nutanix Inc (NASDAQ:NTNX). The most significant stake in Nutanix Inc (NASDAQ:NTNX) is owned by David Blood and Al Gore’ sGeneration Investment Management, worth about $780 million.

Earlier this month, Raymond James upgraded the stock to Outperform from Market Perform and increased its price target to $72 price target on the stock.

Nutanix Inc (NASDAQ:NTNX) recently announced that it has partnered with NVIDIA, after which NVIDIA NIM inference micro-services will be integrated with Nutanix Inc (NASDAQ:NTNX) GPT-in-a-Box 2.0. This integration would help customers develop secure and scalable generative AI applications.

Carillon Chartwell Small Cap Value Fund made the following comment about Nutanix, Inc. (NASDAQ:NTNX) in its Q3 2023 investor letter:

“Within the Carillon Chartwell Small Cap Growth Fund, information technology and industrials were the strongest-performing sectors, with strong stock selection leading to alpha generation. The new management team at Nutanix, Inc. (NASDAQ:NTNX) continues to execute well, delivering another positive quarterly earnings surprise. Nutanix’s core hyperconverged infrastructure (HCI) technology continues to gain market share over its competitors.”

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