In this piece, we will look at Jim Cramer’s bold predictions about technology stocks.
The DeepSeek selloff which occurred earlier this week gave Jim Cramer plenty to talk about. It saw one of his most frequently mentioned stocks, the GPU firm responsible for making AI chips, lose nearly $600 billion in value during a single day of trading. Other stocks exposed to data center spending didn’t fare well either, and cumulatively, these stocks lost a trillion dollars of market value.
As investors pondered whether the billions of dollars in AI spending would actually materialize, Cramer discussed the potential offered by the firm’s latest Blackwell AI GPUs. The debate surrounding low AI costs primarily centers around large language models (LLMs), and Cramer believes that the firm’s CEO is focused on the bigger picture.
According to him:
“Remember, Blackwell, which is the current iteration, Blackwell’s about video. It’s just about video. And video is incredibly important. Because video is the ability to make it so that the robots work. Robots do not work on the current one. And I think robots are the next frontier. So I don’t think necessarily that uh . . . . Elon Musk, who may be focused on many different things, that Elon Musk says I don’t wanna buy [the AI GPUs]”
As DeepSeek wreaked havoc on the stock market, Cramer also shared his thoughts about the model. The CNBC TV show host shared that he “tried to do a couple of, I tried to get it to give me Netflix’s performance from 2010. And it says I can’t do that. Well I mean, honestly? I can do that.” Cramer remained skeptical about the authenticity of the data that DeepSeek had shared. According to him “The difference here I think is that, if we really think that they are playing by American rules and they’re telling us everything, then maybe that’s why we keep seeing such a great number, a growth number from the Chinese economy.”
One particular DeepSeek feature that he was quick to note was censorship. Chinese social media and technology platforms cannot provide users with information critical of the government or the state narrative. When Cramer asked DeepSeek “What famous picture has a man with grocery bags in front of a tank?” the model initially replied by stating “the famous picture you are referring to, Tank Man, unknown rebel, June 5, 1989,” he shared. While this was all good, he added the model then “takes that back and says sorry, can’t help you with that. And then secondarily it says sorry that’s beyond my current scope.”
On the topic of AI and technology, the AI PC cycle has also left Cramer disappointed. Cramer shared that while business uses for AI had materialized, on the consumer side, demand hasn’t materialized. “The PC, I thought we were all gonna upgrade. And now we’re all in wait-and-see mode,” he shared in a recent appearance.
One particular business AI use case that has impressed Cramer is healthcare. According to him:
“I think that what we’re not thinking about, like when I went to Jensen Huang’s panel on healthcare. It’s so much bigger than anything involving AI PC. I mean they’re really just talking about having the data to really attack every single disease and changing it from fatal to maintenance. You have tremendous number of people involved in trying to do that. Then you have Stripe there working with [the GPU company] to be able to do something revolutionary in finance. And then you have the banks working doing some revolutionary things trying to get people who’re doing S1s. . . .”
Our Methodology
To compile our list of Jim Cramer’s bold predictions about tech stocks, we scanned the stocks he mentioned in Mad Money and Squawk on the Street in September 2024. Then, we picked out stocks with tech exposure and ranked them by the number of hedge funds that had bought the shares in Q3 2024.
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).
10. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders In Q3 2024: 49
Date of Cramer’s Comments: 09-03-24
Performance Since Then: -4.2%
MongoDB, Inc. (NASDAQ:MDB) is a SaaS company that provides database services to businesses. The firm allows customers to store high-volume data, run queries, and conduct other operations. Since Cramer’s remarks in September, MongoDB, Inc. (NASDAQ:MDB)’s shares have lost 4.2%. These losses have come on the back of a major selloff in December when the stock bled 16.9% when investors panicked about the firm’s CEO and COO departing. Year-to-date, MongoDB, Inc. (NASDAQ:MDB)’s shares are up by 10.8% as they actually rose by 7.3% the day after the DeepSeek selloff. The move was part of a broader rotation into software with the hopes of benefits from lower AI development costs. Here’s what Cramer had said about MongoDB, Inc. (NASDAQ:MDB) in September:
“Crisis averted at MongoDB. Citi lifted its price target on the database software maker’s stock to $400 a share from $350 after it boosted its guidance late Thursday. Analysts argue the earnings report showed its first-quarter challenges, which sent the stock cratering in late May, were just a blip.”
9. Dell Technologies (NYSE:DELL)
Number of Hedge Fund Holders In Q3 2024: 60
Date of Cramer’s Comments: 09-04-24
Performance Since Then: -3.4%
Dell Technologies (NYSE:DELL) is a personal computing and information technology hardware products provider that sells products such as laptops and servers. Its shares have fluctuated in response to the firm’s ability to cater to AI data center demand. Since Cramer’s remarks, Dell Technologies (NYSE:DELL)’s stock has lost 3.4%. The shares dipped by 12.2% in November when the firm’s third-quarter revenue of $12.1 billion missed analyst estimates of $12.4 billion. Dell Technologies (NYSE:DELL)’s shares also dropped by 8.7% in January amidst the DeepSeek selloff due to its exposure to AI data centers. Here’s what Cramer had said in September:
“This story is all about Dell making servers for the data centers that power artificial intelligence, along with new lines of AI-infused PCs. Unfortunately, the numbers were somewhat confusing, but I think that Wall Street got this one right—at least initially—as the stock timely rallied more than 4% last Friday before giving back all those gains today. Yep, Dell’s still worth owning here, and I’m going to tell you why. Let’s start with the numbers: Dell delivered a meaningful revenue beat driven by 38% growth from its Infrastructure Solutions division. Much better than expected, mostly thanks to heavy investment in AI infrastructure by corporate clients. In fact, their server and networking sales were up 80% year-over-year.”
“Dell’s other business, the Client Solutions Group, which includes the PC business, came in a little light, but not light enough to offset the strength in the infrastructure side. In the earnings release, Dell Vice Chairman and COO Jeff Clarke, an old hand, explained that “our AI momentum accelerated in Q2, and we’ve seen an increase in the number of enterprise customers buying AI solutions each quarter.” Notice the word “solutions”—I think that’s really important. It’s more than just a box. He added that AI-optimized server demand jumped by 23% compared to the previous quarter.”
“Now, last time Dell reported, some investors didn’t like the margins from Dell’s infrastructure business. Long story short, their earlier AI hardware sales mainly came from selling servers to large hyperscalers—here we’re thinking about Alphabet, Amazon, Meta—and those companies can drive a hard bargain. Dell was confident that the margins would improve later on as they sold more networking and storage equipment along with services, but hardly anyone was willing to give them the benefit of the doubt. Except me, maybe. That’s because I saw that Jeff was with Jensen—of course, Jensen Huang, CEO of Nvidia—at the GTC conference I attended.”
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders In Q3 2024: 107
Date of Cramer’s Comments: 09-04-24
Performance Since Then: -15.6%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a CPU and GPU designer with a presence in the personal computing, enterprise computing, and gaming console markets. Its shares have lost 15.6% since Cramer’s remarks on the back of a variety of factors. Analysts have been left unimpressed by Advanced Micro Devices, Inc. (NASDAQ:AMD)’s ability to compete with NVIDIA in the AI GPU market. They have also expressed doubts about the firm’s PC market performance during the first half of this year. The stock slid by 6.4% during the DeepSeek panic. Here’s what Cramer had said about Advanced Micro Devices, Inc. (NASDAQ:AMD) in September:
“Very, very tough. You put a gun to my head—it’s so hard. By the way, Hock is remarkable, and they’re going to report this week. I think Lisa Su from AMD is just terrific too. It doesn’t have to be either/or because the charitable trust owns both. But, you know what? In two days, anything can happen—that’s how crazy this market is.”
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders In Q3 2024: 128
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 39.9%
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that designs and sells chips for a wide variety of computers and devices. These include smartphones and data centers to allow the firm to target personal and enterprise computing markets. Broadcom Inc. (NASDAQ:AVGO) has been one of the biggest beneficiaries of AI spending, particularly in December when its shares surged by a whopping 62%. The stock rose as Broadcom Inc. (NASDAQ:AVGO) outlined that it could earn as much as $70 billion in revenue from AI chips in 2027. However, the stock sank by 17.4% during the DeepSeek selloff to make the firm one of the worst hit during the day. Here are Cramer’s remarks:
“Beware, Broadcom reports this week. Right now, anything that’s reported just doesn’t seem to matter—it’s going to go lower. But, you know what? In two days, anything can happen—that’s how crazy this market is.”
6. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Holders In Q3 2024: 158
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 7.6%
Apple Inc (NASDAQ:AAPL) is the most valuable technology company in the world, a title that it regained on Monday during the DeepSeek selloff. Most of Cramer’s comments in 2025 about the firm have centered either around its latest earnings or around a purported lack of innovation. Since his September remarks, Apple Inc (NASDAQ:AAPL)’s shares have gained 7.6%. However, these gains have come primarily on the back of the DeepSeek selloff which saw tech-eager investors flock to the shares due to its defensive nature. Apple Inc (NASDAQ:AAPL)’s shares also gained 4.6% in the aftermarket after its latest earnings saw the firm guide strong iPhone sales and beat analyst revenue and EPS estimates:
“Stocks can’t stabilize until these weak shareholders sell out. History shows that significant market drops like this tend to offer great buying opportunities. On September 3rd, 2020, Apple lost $180 billion in market cap, but it soared 83% versus the S&P’s 60% gain.”
“Apple Inc. (NASDAQ:AAPL), is about to unveil a new phone that should be fabulous. But maybe it’ll be too fabulous for the Justice Department? They might argue that Apple’s success could give it even more bargaining power over app developers if this phone is that good. But there are plenty of strong competitors to Apple. If you don’t like Apple, you can just buy a Samsung. There’s no smartphone monopoly, so how can there be monopolistic behavior?”
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 17.3%
NVIDIA Corporation (NASDAQ:NVDA) is the ill-fate GPU stock that led the stock market selloff on Monday. The bloodbath made the shares lose nearly all of their gains made since October last year. Since Cramer’s comments quoted here, NVIDIA Corporation (NASDAQ:NVDA)’s shares are still up by 17.3%. Had the selloff not occurred, then they would have gained 36%. This rather tepid performance is part of an overall cautious approach for the stock that has persisted amidst reports of troubles with NVIDIA Corporation (NASDAQ:NVDA)’s latest Blackwell chips. Here’s what Cramer had said in September:
“A repeat of 1999 would indeed be devastating for NVIDIA and all the tech that surrounds it. As much as I think Cembalest is the best pure strategist on Wall Street—the best I’ve found—I found this piece a little harsh because we had many fly-by-night outfits spending like drunken sailors back in the 1990s. Now, though, the firm and its clients are some of the most well-endowed companies ever. The company doesn’t have any real competition, and no one is near them by their own proclamations.”
“As the company’s CEO Jensen Huang has pointed out many times, if the tech titans don’t spend, they’re out of luck when some great use cases come along, and they don’t have the infrastructure for it. Remember, Jensen has proved that the platform pays for itself very quickly. That sure wasn’t the case back in 1999, was it? Of course, the company’s stock has become a total pariah right now after this amazing quarter because the world suddenly seems convinced that AI spending will peak soon, at which point it’s all over but the shouting.”
“Stocks are getting slammed because most investors think the company’s run-up was too extreme, given that the company only reported a major upside surprise—not the kind of insanely huge upside surprise they’d come to expect. The sellers are eager to take the company back to where it was trading during the last visit to the penalty box in the first week of August, with the stock ticking as low as $90 and change.”
“I’m sure the sellers will be right back tomorrow morning after we learned tonight that the Justice Department has hit the company with a subpoena over an antitrust probe. Now, who cares? That’s standard practice. It’s shot first, second, and third. Though with the company right now, no one’s thinking, “Well, wait a second, why didn’t the Justice Department just ask them some questions?”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q3 2024: 202
Date of Cramer’s Comments: 09-03-24
Performance Since Then: 28%
Alphabet Inc. (NASDAQ:GOOGL) is a mega-cap technology firm that hasn’t performed remarkably well on the stock market. Since Cramer’s remarks, its shares have gained 28%. This performance has come almost entirely on the back of the firm’s Willow quantum computing chip announcement in December. According to Alphabet Inc. (NASDAQ:GOOGL), Willow can compute calculations that would take a standard supercomputer 10 septillion years in less than five minutes. During the DeepSeek selloff, the shares lost a modest 4.2% but have recovered the losses since then. Here’s what Cramer said:
“Alphabet shares may be range-bound due to uncertainty around remedies in the antitrust case that went against Google’s parent company last month, according to Morgan Stanley. The analysts lowered their price target on the stock to $190 a share from $205 as a result, but kept their buy-equivalent rating. We own Alphabet for the CNBC Investing Club.”
3. Meta Platforms, Inc (NASDAQ:META)
Number of Hedge Fund Holders In Q3 2024: 235
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 34%
Meta Platforms, Inc (NASDAQ:META) is the world’s most valuable social media company. The firm is also a key player in the AI race because of its foundational AI model Llama and its ability to target advertisers and users with AI products through Facebook and Instagram. Since Cramer’s remarks, Meta Platforms, Inc (NASDAQ:META)’s shares have gained 34%. A large portion of the gains are due to the stock’s strong performance in 2025. The momentum built ahead of Meta Platforms, Inc (NASDAQ:META)’s fourth-quarter earnings as investors expected strong performance due to cost-cutting initiatives. The firm didn’t disappoint as its $8.02 EPS handily beat analyst estimates of $6.75 to send the stock up 1.6%. Here’s what Cramer said in September:
“You’re going to hold Meta because it’s not expensive, believe it or not. It’s probably the least expensive of the mega caps, especially after what happened with Alphabet. Here’s what I would say: if it went down, let’s say 100 points, you should buy another 25 shares. I’m not advocating selling it right here because there’s too much in the pipeline that could be very good. We’re on a down day, and a lot of people freak out on down days. So, stay the course.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders In Q3 2024: 279
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 1.36%
Microsoft Corporation (NASDAQ:MSFT) is the most valuable software company in the world. While it was one of the earliest beneficiaries of the AI wave, since June last year, the shares have been downbeat. Investors have fretted about Microsoft Corporation (NASDAQ:MSFT)’s ability to rapidly generate AI profits to recover the billions of dollars it has invested in the technology. Since Cramer’s comments, the stock is up by just 1.36% after having lost 6% following its Q4 earnings that disappointed with cloud guidance. Here’s what Cramer said in September:
“Stocks can’t stabilize until these weak shareholders sell out. History shows that significant market drops like this tend to offer great buying opportunities. Microsoft lost $178 billion in market cap on March 16th, 2020, but went on to surge 202%, compared to a 131% gain for the S&P 500 over the same period.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q3 2024: 286
Date of Cramer’s Comments: 09-04-24
Performance Since Then: 33.4%
Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest eCommerce company. The firm also has a sizable presence in the cloud computing industry. Its dual moat, through exposure to the high volume eCommerce and the high margin cloud business, helps the stock during turmoil. The stability surrounding Amazon.com, Inc. (NASDAQ:AMZN)’s shares was clear on Monday when its shares actually closed 1% higher during the DeepSeek selloff. Since Cramer’s remarks, the shares have gained 33.4% as they have benefited from events such as a whopping 52% EPS growth in November. Here’s what Cramer had said in September:
“Stocks can’t stabilize until these weak shareholders sell out. History shows that significant market drops like this tend to offer great buying opportunities. On April 29th, 2022, Amazon lost $126 billion in market cap. Since then, it has rallied over 39%, beating the S&P, which is up 33% in the same timeframe.”
AMZN is a stock Jim Cramer talked about in September. While we acknowledge the potential of AMZN 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 timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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