In this piece, we will look at Jim Cramer’s bold predictions about AI stocks.
As trading in 2024 heads towards a close, major stock market indexes have had a good run despite mixed performance across sectors. The flagship S&P index is up 26% year-to-date while the broader NASDAQ index has gained 33.56%. On top of this, the index of the NASDAQ’s top 100 stocks is up 29.8%, which solidifies the conclusion that technology stocks have driven the stock market’s 2024 returns. For further evidence, consider the Dow’s performance. The stock index which tracks industries across the US economy is up 14% YTD, making it the weakest-performing index among all mentioned.
However, even within technology, not all stocks have performed equally well. As an example, consider the performance of two stocks. Both of these are semiconductor companies. The first, which ranked 3rd on our list of Jim Cramer’s bearish tech calls is the largest American manufacturer of memory chips. The second, which ranked 1st on the same list is Wall Street’s AI darling. The two stocks have gained 7.64% and 184.60% year-to-date, so even though both of them are technology companies, their share price returns have differed primarily because of the firms’ varying exposures to artificial intelligence.
Yet even though AI has held up the stock market in 2024, other factors continue to influence stock performance as well. Continuing with our example of the GPU designer’s shares, the stock dropped by 1.1% on the day the Federal Reserve cut interest rates but guided two cuts for 2024 instead of the earlier four. The shares fell despite the fact that the firm enjoys the widest moat possible in the AI industry. On the same day, the flagship S&P and the broader NASDAQ indexes shed 2.9% and 3.6%, respectively. Following the year-end sell-off on Friday, neither index has fully recovered to levels before the Fed’s announcement.
Cramer, for his part, had predicted that the markets might not find it easy to reverse all losses following the Fed’s announcement. Talking on CNBC’s Squawk on the Street on the day after the Fed’s decision, the host shared that “rampant Bitcoin speculation, after speculation in nuclear power, after speculation in quantum computing” was baked into markets ahead of the announcement. Commenting on quantum computing in particular, Cramer mentioned one quantum computing stock and wondered whether the industry was all hype and no substance. “How is that [the firm] going to quantum? When we don’t even know what quantum is?” wondered Cramer. “It’s a nonfungible tokens, right? Cause you know what a fungible token was?” he added.
As AI continues to shape the winners and losers in the stock market, Cramer also shared tips for trading in 2025 in a recent Mad Money episode. He believes that one key fact that everyone needs to keep in mind when trading is to not get disillusioned by strong gains. According to Cramer, while bulls and bears both “make money” on the stock market, it’s the pigs that “get slaughtered.” He elaborated further and shared that in his experience he’s “seen moments where stocks went up and up and up so much that people were intoxicated with their gains.” Yet, it’s “precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig,” believes the television show host.
Cramer’s second tip for successful investing is to have the fortitude to hold stocks even when the market is tough. He believes that not only is holding through the thick and thin ‘the hardest part of investing,” but adds that “taking short-term pains so you can have long-term gains” lies at the heart of the market’s performance “for a century.”
Finally, one key factor that several people ignore while trading stocks is to hunt for the right entry price. Cramer cautions against buying in bulk. “Do not, under any circumstances, buy your whole position at once,” he stresses and adds that “you should never sell all at once,” either. Instead, Cramer recommends staging “your buys, work your orders, try to get the best price over time.”
Our Methodology
To compile our list of Jim Cramer’s bold predictions about AI stocks, we scanned the stocks he mentioned in Mad Money and Squawk on the Street as far back as in August. Then, we picked out stocks with AI computing, hardware, and energy generation 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).
15. Powell Industries, Inc. (NASDAQ:POWL)
Number of Hedge Fund Holders In Q3 2024: 26
Date of Cramer’s Comments: 8-19-24
Performance Since Then: 35.10%
Powell Industries, Inc. (NASDAQ:POWL) is an electrical infrastructure company whose products are used in data centers that compute AI workloads. It’s one of the top-performing stocks of 2024 due to strong revenue growth stemming from tailwinds in the data center and utilities markets. Powell Industries, Inc. (NASDAQ:POWL)’s revenue grew by 45% during its fiscal year 2024, and the shares are up by 156% year-to-date. One key factor that has driven investor optimism in the firm’s stock is its backlog. A robust backlog lets investors gain visibility into future orders. As of its fiscal Q4, Powell Industries, Inc. (NASDAQ:POWL)’s backlog remained steady at $1.4 billion. Cramer commented on the backlog and other factors surrounding the firm:
“Lately, the market has fallen in love with a particular kind of industrial stock. These are still smokestack stocks, but they also have powerful secular growth drivers, meaning they can thrive even if the economy doesn’t accelerate. Tonight, I have a smaller company that falls into the same category: Powell Industries. This company has been around since 1947 and went public decades ago. However, the stock has caught my attention over the past couple of years, skyrocketing from $20 in late September 2022 to $171 today—a gain of more than 700%. So, what does this company do, and how did the stock manage to catch fire like this? More importantly, can it keep running once the Fed starts blessing us with rate hikes?
“Let’s start with the basics. Powell makes custom-engineered equipment that distributes, controls, and monitors the flow of electricity while also providing protection to all sorts of electrically powered hardware, like motors and transformers. If you want to know why the stock languished from 2014 through late 2022, it’s because of their exposure to the oil and gas industry. Even now, the fossil fuel industry accounts for 59% of Powell’s sales year-to-date. However, the stock’s spectacular breakout over the past couple of years has been driven by Powell’s success in new markets, namely utilities, transportation like light rail, metals and mining, pulp and paper, and of course, data centers. Everything really came together for Powell Industries last year, with these new businesses generating tremendous growth. After four years of being stuck in the $500 million revenue range, Powell posted 31% revenue growth in 2023, reaching total sales of just under $700 million.
“Meanwhile, their earnings per share nearly quadrupled—from $1.15 in 2022 to $4.50 last year. It’s like hitting the lottery. Essentially, if their equipment can handle the petrochemical business, it can handle utilities, especially those in the Gulf Coast, where many of their petrochemical customers are located. Cope also mentioned data centers, electric vehicles, and semiconductors. When you put it all together, it’s easy to see how Powell’s orders grew by 94% last year, with their backlog increasing by 118% to $1.293 billion—the first time their backlog ever crossed the $1 billion mark.
“These numbers are incredible, yet Wall Street continues to underestimate this company, allowing Powell to repeatedly blow away the estimates. It’s like the old days when companies were smaller, moving from midcap to large cap. When Powell reported at the end of January, they posted 53% revenue growth and earned $1.98 per share. Analysts were only expecting $0.84. Yes, that’s right—they more than doubled the analyst consensus, which is extraordinary.”
“When Powell reported again in early May, they delivered another monster revenue beat with a staggering $0.97 earnings beat, off a $1.78 estimate. That’s an upside surprise of almost comical proportions. Most recently, Powell delivered yet another stunning quarter at the end of July, with much higher-than-expected revenue, earning $3.79 per share. Wall Street had only expected $2.16. No wonder the stock has more than doubled in the past seven months—these beats are extraordinary.”
14. Evergy, Inc. (NASDAQ:EVRG)
Number of Hedge Fund Holders In Q3 2024: 30
Date of Cramer’s Comments: 8-26-24
Performance Since Then: 4.10%
Evergy, Inc. (NASDAQ:EVRG) is a large Missouri-based utility that generates power through conventional and clean energy sources. It is one of the biggest AI infrastructure plays on the street due to more than one gigawatt of data center projects it has signed with big ticked AI companies Meta, Alphabet, and Microsoft. These projects have made Evergy, Inc. (NASDAQ:EVRG) project that its electricity demand could grow by as much as 3% over the next couple of years. The shares are up by a modest 15.5% year-to-date as they’ve been held back by a delayed recovery in residential power consumption. Cramer mentioned Evergy, Inc. (NASDAQ:EVRG)’s AI exposure in August:
“Let’s look at a utility stock that can serve as a safety net if the Fed’s rate cuts fail to boost the economy. Even if the economy improves, utilities are set to benefit from the insane demand for electricity driven by the construction of data centers for AI workloads. Many high-quality utilities have yields that aren’t quite high enough to make this list, but we want stocks with yields higher than the 10-year Treasury. Dominion Energy has the highest yield among utilities in the S&P 500, but I’m not confident in their dividend due to some ongoing issues.
“Instead, I recommend Evergy, the second-highest yielding utility in the S&P 500, with a 4.34% yield. Evergy, based in Kansas City, was formed by the merger of Great Plains Energy and Westar Energy in 2018. Although the stock has mostly traded sideways since the merger, there’s a new angle to the story that hasn’t yet been reflected in the stock price.
“Evergy’s service area has announced three major projects that will eventually consume massive amounts of electricity: a $4 billion electric vehicle battery plant from Panasonic, the largest in the world when fully operational in 2026; an $800 million data center from Meta, expected to be fully online by 2027; and a billion-dollar data center from Google, expected to be online by 2028. Combined, these projects represent a staggering 750 megawatts of load. This is exactly what you want to see in a utility stock—a solid yield and potential for load growth.”
13. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders In Q3 2024: 64
Date of Cramer’s Comments: 8-19-24
Performance Since Then: 8.45%
Palo Alto Networks, Inc. (NASDAQ:PANW) is a cybersecurity company that has been one of the more troubled stocks in 2024. The firm was dealt a devastating blow in February when the shares sank by 28% following a 5.6% midpoint billings and a 2.4% revenue guidance cut. Yet, Palo Alto Networks, Inc. (NASDAQ:PANW) has significantly improved its share price performance since then. Its shares are up by 42% since the drop to bring the year-to-date gains to a comfortable 28.9%. The shares have been helped by a strong earnings report in August that exceeded annual revenue estimates and quarterly top and bottom line readings. However, there is some weakness in Palo Alto Networks, Inc. (NASDAQ:PANW) as well, since the stock fell by 6.2% after the Fed’s latest meeting to indicate a clear link between economic performance and the shares. Here’s what Cramer said:
“Palo Industries is a fantastic, under-the-radar industrial stock, and given its recent pullback, I think now is the time to buy. When Palo Alto Networks reported back in February, the guidance was considered dismal, and the stock plunged from the $360s to the $260s in a single day. But after speaking to the CEO, what did I do? I told you to stick with it, maybe even do some buying, and we did just that for the Travel Trust because the future is bright for this best-of-breed cybersecurity play. Sure enough, since then, the stock has been a juggernaut, closing at $343 today and rallying in after-hours trading. Palo Alto reported a strong top and bottom line beat with very encouraging guidance for the 2025 fiscal year, which has already started.”
12. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders In Q3 2024: 68
Date of Cramer’s Comments: 08-12-24
Performance Since Then: -0.83%
Intel Corporation (NASDAQ:INTC) is the world’s largest integrated chip manufacturer. While its business model of designing and manufacturing chips provides it with a clear advantage in the industry, Intel Corporation (NASDAQ:INTC) has struggled in 2024. The firm’s AI chips have failed to compete with NVIDIA’s offerings, and sluggishness in the personal computing market has hit its revenues right when it’s investing in retaking the chip manufacturing process technology lead from Taiwan’s TSMC. Intel Corporation (NASDAQ:INTC)’s shares are down 57.5% year-to-date, and it’s exiting 2024 with more turmoil in the form of former CEO Patrick Gelsinger’s surprising exit. Cramer started out his comments about Intel Corporation (NASDAQ:INTC) with sarcasm and then pointed out its troubles:
“Intel’s fine. Better than ever. Don’t worry about it. I keep hearing that Intel’s gonna make a huge comeback that is catching up the others in the data center. That the data center has an Nvidia killer in GE-3. That it’s using the chips to sack money from you and further it’s dominance. DREAM ON! Have you seen Intel’s balance sheet? Can you read one? Do you think a company that cut his dividend last year and then suspends what was left of it this year in order to assert its dominance?! Look, this is not the Intel of old even though we want it to be. Despite Intel’s protestations, I wouldn’t want to be Intel’s partner.”
11. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders In Q3 2024: 71
Date of Cramer’s Comments: 8-19-24
Performance Since Then: 24.55%
Datadog, Inc. (NASDAQ:DDOG) is a SaaS company that provides cloud observability and analytics products and services. It is among the category of firms that enable AI software firms to monitor their software tools. Datadog, Inc. (NASDAQ:DDOG) provides AI-based products such as a DevOps copilot which enables threat detection and monitoring across web, mobile, and other platforms. The firm’s shares are up by 26.9% year-to-date, and AI demand appears to be materializing in its income statement as well. Datadog, Inc. (NASDAQ:DDOG) now expects to earn $2.66 billion in full-year revenue, a jump over the earlier midpoint of $2.625 billion. The firm also benefits from the ongoing shift to cloud computing which increases the demand for its products. Cramer urged some caution for Datadog, Inc. (NASDAQ:DDOG) in August:
“Datadog is usually a fabulous company. There were people trying to buy it for $20 billion before it ever went public. My problem is that it’s just the definition of enterprise software—the kind of analytics that tells you how your company’s doing. There are too many players in that space, Dave. So I’m going to reiterate: I don’t trust it yet, but it is a very good company. And thank you for the question.”
10. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders In Q3 2024: 71
Date of Cramer’s Comments: 8-16-24
Performance Since Then: 23.91%
Snowflake Inc. (NYSE:SNOW) is a data warehousing company that is one of the biggest of its kind. Estimates suggest that the firm holds a 22% market share which provides it with a sizable advantage in today’s AI industry since data is indispensable for the proper functioning of AI models. Snowflake Inc. (NYSE:SNOW)’s shares have struggled in 2024 due to a broader slowdown in enterprise and cloud computing. However, the firm’s shares jumped by a whopping 33% in November after it announced a partnership with Amazon-backed Anthropic to build AI agents for data analysis. The share price jump reflected the potential offered by Snowflake Inc. (NYSE:SNOW)’s data resources to combine with Anthropic’s AI technologies for analytics. Cramer held off recommending the stock in August:
“The latest feedback I’m getting about Snowflake is that they’re facing some difficulties and are being challenged by a couple of companies. It’s kind of a tough road for them right now. I think I’m going to hold off on recommending it.”
9. Tesla, Inc (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q3 2024: 99
Date of Cramer’s Comments: 8-19-24
Performance Since Then: 93.81%
Tesla, Inc (NASDAQ:TSLA) is the world’s biggest pure-play electric vehicle company which is also a key player in the AI industry due to the tech-focused nature of its CEO Elon Musk. The firm’s assisted driving platform FSD is among the market leaders in its niche, and it uses AI and copious computing resources to derive real-time driving insights. Musk’s proximity with President-elect Donald Trump has also injected fresh life into Tesla, Inc (NASDAQ:TSLA)’s shares since the November election. Ahead of the election, the shares were up by a meager 1.22% year-to-date due to broader weakness in the EV industry and a lack of clear guidance on autonomous ridesharing and other initiatives. Since then, Tesla, Inc (NASDAQ:TSLA)’s stock has gained 71.7%. Here’s what Cramer said in August:
“Investors should own shares of Tesla [heading] into the electric vehicle maker’s robotaxi event set for Oct. 10, according to analysts at Piper Sandler. The unveiling event was originally slated for Aug. 8, but CEO Elon Musk has said he requested design changes that resulted in the delay. Piper Sandler maintained its buy-equivalent rating and $300 price target on the stock. Shares of Tesla are down about 13% year to date.”
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders In Q3 2024: 107
Date of Cramer’s Comments: 08-12-24
Performance Since Then: -8.43%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is the only company in the world with a sizable presence in the x86 CPU and GPU markets. In both of these markets, the firm is the second biggest player. Its presence in the CPU industry has helped Advanced Micro Devices, Inc. (NASDAQ:AMD) eke out market share following chip giant Intel’s historic struggles with manufacturing the latest chips. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s acquisitions over the past couple of years have provided it with a footing in tertiary industries such as FPGAs and AI products. While its AI accelerators are also somewhat popular, sentiment has soured in the year’s second half. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares are down by 9.6% year-to-date; but, Cramer was optimistic in August:
“AMD isn’t nipping at their heels. AMD is dominating. It’s actually taking gobs of market share, and galy 3 is not a factor when it comes to Nvidia’s high-end chips.”
7. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders In Q3 2024: 115
Date of Cramer’s Comments: 8-19-24
Performance Since Then: 1.37%
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese technology conglomerate that is also one of the largest eCommerce players in the country. Estimates show that the firm commands at least 40% of merchandise shipments in China. Alibaba Group Holding Limited (NYSE:BABA) also enjoys a key place in China’s cloud computing and AI industries through its Alibaba Cloud and Alimama businesses and tools. However, the shares are up by just 13.8% year-to-date and have lost 14.3% since the November election due to the incoming Trump administration’s perceived hard stance against China. Recently, Alibaba Group Holding Limited (NYSE:BABA) has sought to consolidate its eCommerce businesses to compete with upstarts like PDD and introduced open-source AI models to establish an industry foothold. Here’s what Cramer said:
“Susquehanna lowered its price target on Alibaba to $130 a share from $135, but maintained its positive rating on the Chinese e-commerce and cloud giant’s stock. Despite a sluggish Chinese economy, analysts touted Alibaba’s progress on AI initiatives and noted its most recent earnings report showed better-than-expect profits.”
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders In Q3 2024: 158
Date of Cramer’s Comments: 8-16-24
Performance Since Then: 13.09%
Apple Inc. (NASDAQ:AAPL) is the world’s most valuable technology company. With more than 50% of its revenue coming from the iPhone, the smartphone plays a key role in the firm’s hypothesis. Any whispers surrounding sales weakness tend to hurt the stock. In 2024, investors have focused on Apple Inc. (NASDAQ:AAPL)’s ability to leverage its loyal customer base to push AI services to the consumer. They have also wondered whether Asian economic weakness could spell trouble for the firm. Apple Inc. (NASDAQ:AAPL) is existing 2024 on the cusp of becoming the world’s first company to touch an unbelievable $4 trillion market capitalization. Here’s what Cramer said about the firm in August:
“Buffet’s the best there is. So he’s the best. People looking in his moves and end up extrapolating to the point of absurdity and that’s why they dumped the bags. It’s why they dumped Apple we heard it was based on Apple supposedly weaker Chinese sales, yet CEO Tim Cook told me just the week before that the sales were probably strong strong and I detailed why that was for the rest of the week until we got a positive jobless claims number. Thursday morning, we labored under the delusion that our economy was headed for a recession potentially a worldwide recession all because of Japan and the safest thing to do do was to sell. It didn’t matter that Japan only bounced back 10% the next day. What mattered was the smart money was getting out of the whole asset class and we felt like dopes hanging on in reality. it was the dumb money that was getting out, because Warren Buffett or one of his assistants made us nervous. Of course we knew nothing about why he sold.”
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders In Q3 2024: 158
Date of Cramer’s Comments: 08-12-24
Performance Since Then: 20.28%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. The firm’s 3-nanometer chip manufacturing technology is the most advanced in the industry, and it has allowed it to establish a deep partnership with Apple. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also makes NVIDIA’s AI GPUs, along with GPUs and CPUs for AMD and other firms. As a result, it enjoys a wide moat in the industry which is unlikely to be challenged in the near future due to the extensive capital expenditure and resources required to establish modern-day chip manufacturing facility. A key risk for the firm is conflict in Taiwan, and here’s what Cramer had to say when asked what he thought about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) being a long-term buy:
“I think you’re fine. I think that there’s always going to be a worry about Taiwan. I think that if you go back to what Lisa Su said, she didn’t tell you not to worry about it because nobody says that. She says, you know, this one is not going to be a problem, and I’m with her.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders In Q3 2024: 160
Date of Cramer’s Comments: 08-19-24
Performance Since Then: 15.24%
Alphabet Inc. (NASDAQ:GOOG) is the embattled technology giant whose shares have struggled in 2024 as it battles action from the Justice Department and continues to rely on search engines and advertising for most of its revenue. Its shares have gained 39% year-to-date, but at the start of December, the stock was up by 22.16% in the year. Alphabet Inc. (NASDAQ:GOOG)’s December share performance has been driven by quantum computing, as the firm’s new Willow chip touts the ability to significantly improve computation times over traditional supercomputers. December has also seen the firm offer to loosen up its search engine deals to resolve the Justice Department’s case. In August, Cramer recalled his thoughts at the time of Alphabet Inc. (NASDAQ:GOOG)’s IPO:
“On this the 20th anniversary of the IPO, I want you to consider the saga of Google. I like the saga so much; it makes me happy. When it went public, it used a Dutch auction system which favored buyers over sellers. You got a driven price if you managed to snag a piece of it. I remember mentioning on air that I thought Google was worth about $300 that day, a price so high that our lawyer called me to ask how I came up with that number. I said I would have used $500 but was being conservative.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: 08-12-24
Performance Since Then: 25.75%
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU designer whose shares have gained more than 700% since OpenAI publicly unveiled ChatGPT. The firm commands the lion’s share of the AI GPU market as it enjoys a large competitive advantage through the performance of its chips. Yet, since AI is a relatively nascent industry and NVIDIA Corporation (NASDAQ:NVDA) doesn’t enjoy a similar presence in other markets, its shares are dependent on AI’s fate. The stock has struggled since July as investors wait to see NVIDIA Corporation (NASDAQ:NVDA)’s Blackwell products, supply chain strengths, and cost control. Here’s what Cramer said in August:
“Nvidia’s Jensen Huang has been telling you can get 4x your money if you buy his chips. That’s 4x return. I think Meta could end up getting that. The others, they actually have to spend to play catchup. It’s not mythical, it’s reality. How much money have you made over the years betting against Jensen Huang?”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders In Q3 2024: 235
Date of Cramer’s Comments: 08-12-24
Performance Since Then: 16.25%
Meta Platforms, Inc. (NASDAQ:META) is one of the biggest social media companies in the world. The firm has managed to position itself as one of the most important AI stocks in the industry after suffering devastating market performance in 2022 because of Mark Zuckerberg’s focus on the metaverse. Now, Meta Platforms, Inc. (NASDAQ:META) has shaped up as an important AI player because of its 3 billion+ user base which investors believe can be used to monetize AI and push services to consumers. The firm is already allowing advertisers to use AI tools to run campaigns, and its narrative depends on sustained AI monetization. Another major catalyst for Meta Platforms, Inc. (NASDAQ:META)’s stock in H2 2024 has been a potential TikTok ban that could further grow its user base. Cramer was full of praise for the firm’s AI division in August:
“We’re constantly being told that none of the big companies spending fortune in video chips for AI has seen any meaningful return on that investment. They’re only doing it to prevent their competitors from getting an edge. That’s what we keep on hearing. That’s absurd! Memo to the clueless naysaying individuals: Have you seen what Meta Platforms has been doing with their computing power? They have, out of nowhere, become one of the most popular generative AI platforms with Meta AI. You have to try. I have switched to it. It is that good. Meta has been using their Nvidia purchases to make instagram reels much more relevant to you, much faster, cleaner. Meta has the best numbers of any of the tech titans. You think that’s some sort of coincidence?”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q3 2024: 286
Date of Cramer’s Comments: 08-14-24
Performance Since Then: 31.56%
Amazon.com, Inc. (NASDAQ:AMZN) is the biggest eCommerce firm in the US and also a key player in the lucrative cloud computing industry. Its partnership with AI firm Anthropic has also allowed the company to establish a foothold for itself in the AI industry and access technologies for enterprise AI products provided through AWS. Amazon.com, Inc. (NASDAQ:AMZN) is also among the handful of firms that operate across all layers of the AI stack – from designing custom chips to providing end-use applications. The tail-end of November and the start of December have been great for Amazon.com, Inc. (NASDAQ:AMZN)’s shares as its Project Rainier supercomputer built using in-house Trainium chips will be used by Anthropic to train AI. Cramer was very optimistic about the firm in August:
“We recently bought more Amazon shares because I believe the market was too harsh on their last quarter. Amazon is a buy, and I think it will continue to perform well.”
AMZN was an AI stock Jim Cramer was gushing about in August. 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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