In this piece, we will look at Jim Cramer’s bold predictions about AI stocks.
With the first quarter of 2025 well underway, Jim Cramer hasn’t been short of comments on artificial intelligence. AI stocks, which entered 2025 with optimism and tailwinds were dealt a shock during January’s DeepSeek selloff. The selloff was centered around stocks of firms that investors believe stand to benefit from billions of dollars in AI GPU spending.
The firm that led the DeepSeek selloff was the AI GPU stock that has been Wall Street’s favorite. Its shares dropped by 17% during the day and are flat year to date after having gained 17% since the selloff. Cramer has also been one of the firm’s biggest fans. For instance, consider his remarks made in January before the selloff. Cramer started out by bemoaning a lack of knowledge about the firm and shared:
“Okay, some of the analysts are good, but some of the analysts are just talking about the quarter! And these are people, who are, they are bound by the four walls of idiocy. This is one of the greatest companies in the world, these people want to buy sell, buy sell, they don’t recognize that [the firm] is doing things that are just running circles around.”
In fact, Cramer went as far as to suggest that the firm was ushering in an industrial revolution. According to him:
“Industrial revolution, why can’t we believe? Do you remember, did you read that, book about John Garfield, where they talked about the telephone, and Alexander Graham Bell tries to get it into the centennial in Philadelphia, and only because the Brazilian guy there doesn’t get to represent it. And Alexander Graham Bell says you know this could revolutionize all of how we do things. And the American judges were like who is this clown?”
“I find over and over again that when you have the industrial revolutions no one really believes in them. And here’s Jensen Huang. The other day someone said to me, I see you’re like Jensen Huang, you guys both were dishwashers. And I said, I was a busboy. I mean the kinds of things I’m seeing with people at [the firm]. How’s your dog doing? My dog died three years ago, should I sell the stock? Heaven forbid they listen to Colette Kress, who is not going to give you the numbers that you want.”
However, the CNBC TV show host had to naturally adjust his expectations after investors re-calibrated their AI GPU spending. Appearing on Squawk on the Street the day after the selloff, he shared two factors that would be key in determining the future of AI stock performance. According to Cramer, these factors are energy spending and GPU orders. Investors have focused on energy stocks, particularly those that deal with nuclear energy – a fact that has sent some stocks to gain as much as 140% over the past year. As for GPU orders, the Q4 2024 earnings season has seen big tech firms persist in their multi-billion dollar AI capital expenditure commitments.
In another morning appearance, Cramer also commented on an outfit he had discovered that was better than DeepSeek. He shared:
“Now there’s an outfit that I’ve been dealing with called you dot com. . . .I really like you dot com. It’s one of those companies that is really ahead of DeepSeek, it’s way ahead.”
He added that after digging deeper, he found that the AI GPU firm mentioned above was actually this outfit’s largest investor. The investment signaled to Cramer that there are alternatives better than DeepSeek as he commented that “the long knives came out” for it at the slightest hint of trouble.
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 September 2024. 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. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders In Q3 2024: 33
Date of Cramer’s Comments: September 5th, 2024
Performance Since Then: 16%
Super Micro Computer, Inc. (NASDAQ:SMCI) makes and sells hardware that is used in servers and data centers. It’s been one of the more troubled AI stocks recently courtesy of a short seller report that surfaced last year and accused it of improper accounting practices. The report sent Super Micro Computer, Inc. (NASDAQ:SMCI)’s shares crashing by 19% after it failed to file its 10-K with the SEC. Since Cramer’s remarks, the stock is up 16% with most of its gains having come in 2025. Super Micro Computer, Inc. (NASDAQ:SMCI)’s shares are up by 59% year-to-date. They are driven by the fact that worries about a delayed 10-K filing appear to be dissipating and potential new orders from Meta. Here’s what Cramer had said about Super Micro Computer, Inc. (NASDAQ:SMCI) in September:
“I’m not a believer in this, to be honest. I thought the Hindenburg report was good. I wouldn’t have been as enthusiastic if it weren’t for that filing the company made the next day. I think Super Micro is good, but when you read the Hindenburg report, it’s clear they need to improve their accounting practices, and that’s what worries me.”
14. ARM Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders In Q3 2024: 38
Date of Cramer’s Comments: September 5th, 2024
Performance Since Then: 27%
ARM Holdings plc (NASDAQ:ARM) is a chip design technology provider. Its intellectual property is used by firms like Qualcomm, Samsung, and Amazon to design mobile chips. ARM Holdings plc (NASDAQ:ARM)’s stock has gained 27% since September, and most of these gains have come in 2025. The stock has benefited from President Trump’s $500 Stargate AI plan and Meta potentially buying the firm’s AI chip. However, ARM Holdings plc (NASDAQ:ARM)’s shares dropped after its fourth-quarter earnings failed to convince investors about AI exposure. Here’s what Cramer said in September:
“Don’t forget about ARM, the 7-nanometer kingpin whose stock has more than doubled since it came public again roughly a year ago. That’s despite pulling back from $188 in early July to $125 today. ARM got a nice boost today on now-confirmed reports that its chip designs are being used in the just-launched iPhone 16. The processor is built on their architecture—that’s not a shocker, but some people don’t understand that.”
“On Friday, many were buzzing about the relentless decline in semiconductor firm Arm Holdings. The stock fell from $123 down to $117, and this was after already coming down from $132 at the end of the previous week. Arm seemed spent, done. Then, today, it shoots back up to $125—up 7%, supposedly because the new iPhone is using their latest design for custom processors. Something that should have been obvious to everyone for months! Was Friday’s sell-off based on pure emotion, and today’s rally just emotion right back? Or did nothing truly happen at all to Arm on either Friday or Monday?”
“ARM is unique in that it designs semiconductor architecture, licenses it out to chipmakers, and collects royalties on their sales. This gives them a nice, predictable revenue stream. Their technology is firmly entrenched in data centers, mobile devices, and even the CPU portion of NVIDIA’s top AI platforms. They’ll be big winners from a new smartphone upgrade cycle fueled by all this new AI functionality.”
“There’s a reason Apple went with ARM’s architecture—they dominate the mobile space. Again, I’d be a buyer into the recent weakness because I think the long-term upside potential is enormous, and I don’t mind that it’s up that much today. It can go further.”
“Here’s the bottom line: it’s time to fall back in love with semiconductors. Some of the most beaten-down chip stocks have been punished enough, and now you’re finally getting a chance to buy ARM and Micron at a discount.”
