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.”
13. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders In Q3 2024: 49
Date of Cramer’s Comments: September 12th, 2024
Performance Since Then: -1.88%
MongoDB, Inc. (NASDAQ:MDB) is a software-as-a-service (SaaS) company that provides firms with the capability to store and manage their data through databases. Since Cramer’s remarks, its shares have lost 1.88% primarily due to a 17% slip in December when investors reacted to the surprising departures of the firm’s CEO and COO. Year-to-date, MongoDB, Inc. (NASDAQ:MDB)’s shares are up by 18.40%, on the back of positive industry developments and analyst coverage. Here’s what Cramer had said in September:
“You know, MongoDB is an enterprise software company that put up terrific numbers and isn’t getting credit in the same way Salesforce and others are. People tend to dislike enterprise software, except for ServiceNow. I think MongoDB is at the right price.”
12. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders In Q3 2024: 56
Date of Cramer’s Comments: September 10th, 2024
Performance Since Then: 27%
International Business Machines Corporation (NYSE:IBM) is an enterprise computing and software company that provides businesses with cloud environments to run their workloads. Its shares have gained 27% since Cramer’s September comments. However, the stock would have been in the red had International Business Machines Corporation (NYSE:IBM)’s shares not risen by 13% in late January. The shares rose primarily because of AI, as the firm’s Q4 results revealed that its AI book had grown by $2 billion in just a quarter. Here’s what Cramer had said about International Business Machines Corporation (NYSE:IBM) in September:
“International Business Machines Corp. (NYSE:IBM) is doing quite well. We’re playing around with Watson for ESPN, which is unbelievable. I’m getting more and more impressed. Arvind Krishna has reinvented the company. He’s doing a terrific job.”
11. Dell Technologies (NYSE:DELL)
Number of Hedge Fund Holders In Q3 2024: 60
Date of Cramer’s Comments: September 4th, 2024
Performance Since Then: 4.9%
Dell Technologies (NYSE:DELL) is a computer hardware company that caters to the AI data center industry by providing server racks and other associated equipment. Naturally, this dependence exposed the firm to AI spending and led to a 12% drop in November when the firm’s Q3 revenue missed analyst estimates. Dell Technologies (NYSE:DELL) shares also dropped by 8.7% in January amidst the DeepSeek selloff, but the shares have gained 10% in February on the back of positive news such as Elon Musk’s xAI inking a $5 billion AI server deal with the company. Here’s what Cramer commented 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.”
10. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders In Q3 2024: 64
Date of Cramer’s Comments: September 16th, 2024
Performance Since Then: 26%
Hewlett Packard Enterprise Company (NYSE:HPE) is an enterprise computing equipment provider. It offers a variety of AI products and solutions such as those which enable businesses to manage their data for AI and machine learning training. Since Cramer’s remarks, Hewlett Packard Enterprise Company (NYSE:HPE)’s shares have gained 26%. One catalyst was the firm’s fourth-quarter report in December that sent its shares soaring by 11% as it posted $8.5 billion in revenue and $0.28 in EPS to beat analyst estimates. However, the shares lost 11.94% during and after the DeepSeek selloff. Here is what Cramer said:
“I think HPE is going to surprise people with that offering. You’re absolutely right; it’s a very inexpensive stock. Down here at $17, I’m as positive as you are!”
9. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders In Q3 2024: 91
Date of Cramer’s Comments: September 6th, 2024
Performance Since Then: 11.7%
Oracle Corporation (NYSE:ORCL), primarily an enterprise resource planning and computing play, has transformed itself into an AI computing resource provider. Its shares have gained 11.7% since Cramer’s comments. Oracle Corporation (NYSE:ORCL)’s shares have performed well as investors have rewarded the firm for setting up and acquiring computing resources that enable enterprise AI computing. The shares jumped by 14% after President Trump’s Project Stargate announcement and dipped by 11% during the DeepSeek selloff. Here is what Cramer said:
“Oracle has reinvented itself with an AI kicker to go with its regular enterprise software business. As of last quarter, it’s been performing exceptionally well, and I think they’re going to do it again. Oracle Corporation (NYSE:ORCL) could stop the tech blood flow.”
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders In Q3 2024: 107
Date of Cramer’s Comments: September 10th, 2024
Performance Since Then: 20.8%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a CPU and GPU company that develops processors and GPUs for consumer and enterprise AI use cases. Since Cramer’s comments in September, its shares have lost 20.8% primarily due to the AI catalysts not materializing. While Advanced Micro Devices, Inc. (NASDAQ:AMD) offers AI chips for consumer PCs and enterprise computing, demand for the former hasn’t emerged and the latter is dominated by NVIDIA. Year-to-date, the stock is down by 6% following a weak Q4 report that disappointed on the data center front. Here is what Cramer said:
“Advanced Micro Devices, Inc. is an on-again, off-again Charitable Trust holding. By the way, we’ll be talking about it on Thursday at our monthly meeting. It’s now an “on” because we started buying some when it sold off in July. It actually began its slide in March and is now down close to 40% from its highs…”
“It’s the third-worst pullback of any chipmaker in the S&P 500. The stock is down 26% just from its lower high on July 10th. And even after rebounding a few bucks today, did you know that Advanced Micro Devices, Inc. is down for the year? Red for the year!”
“Really, Advanced Micro Devices, Inc.’s latest quarter was pretty good across the board. They posted modest sales and earnings beats, with better-than-expected guidance for the current quarter. The stock only jumped 4% on the news!”
“Now, Advanced Micro Devices, Inc. is expected to earn $5.45 per share next year, with that number growing to $7.24 per share in 2026. But in a few months, 2026 will be next year, at which point the stock would be selling for less than 20 times next year’s earnings. I believe in CEO Lisa Su, and I think Advanced Micro Devices, Inc. is a great buy into weakness. I’ve got to tell you, that puts it below a market multiple—and to me, that’s just wrong.”
7. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders In Q3 2024: 107
Date of Cramer’s Comments: September 9th, 2024
Performance Since Then: 15.4%
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor manufacturer that is one of the few firms of its kind in the world capable of manufacturing advanced memory chips. Its shares have been on a tear in 2025 after NVIDIA CEO Jensen Huang confirmed that Micron Technology, Inc. (NASDAQ:MU)’s HBM3 memory is used in AI GPUs. The stock has gained 14% year-to-date despite falling by 11% during the DeepSeek selloff. Since Cramer’s remarks, Micron Technology, Inc. (NASDAQ:MU)’s shares have added 15.4% in gains. Here’s what he said:
“Micron Technology Inc. (NASDAQ:MU) is now in its 2025 fiscal year, where it’s expected to earn $9.59, with that number growing to nearly $13 the following year. In other words, Micron Technology Inc. (NASDAQ:MU) is trading at less than 7 times next year’s fiscal earnings estimates. That’s insanely cheap—but remember, that often means people don’t believe in the estimates. That’s how it gets to seven times. I understand that, but I think the estimates are okay.”
6. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders In Q3 2024: 123
Date of Cramer’s Comments: September 6th, 2024
Performance Since Then: -18.3%
Adobe Inc. (NASDAQ:ADBE) is a software company that provides productivity tools. It’s shaped up to be one of the most consequential enterprise software AI stocks due to its large customer base and reliance on subscription revenue. Adobe Inc. (NASDAQ:ADBE)’s shares have lost 18.3% since Cramer’s remarks. All of the drops have been fueled by weak earnings guidance that created skepticism about the firm’s ability to generate AI revenue. However, 2025 has been a good year so far as the shares are up by 4.34% year-to-date. Here’s what Cramer had said about Adobe Inc. (NASDAQ:ADBE) in September 2024:
“Adobe Inc. (NASDAQ:ADBE) reports after the close. We’ve had three positive analyst notes ahead of this quarter, which is extremely bullish. Against that, of course, is the fact that Adobe is a tech company with an AI component, which is now suddenly “guilty until proven innocent”—a complication to an otherwise magnificent story. That said, I sense this should be a good result for the bulls, given that the analysts are promoting it so aggressively ahead of the quarter.”
5. Broadcom Inc (NASDAQ:AVGO)
Number of Hedge Fund Holders In Q3 2024: 128
Date of Cramer’s Comments: September 6th, 2024
Performance Since Then: 70%
Broadcom Inc (NASDAQ:AVGO) is a semiconductor designer that sells networking and other chips. Its ability to design chips has paid off well in the AI era due to the products’ ability to supplement pricey and short-in-supply GPUs made by NVIDIA. Since Cramer’s remarks, Broadcom Inc (NASDAQ:AVGO)’s stock has gained 70% in an impressive set of gains that have seen their ups and downs. The shares soared by 38% in December 2024 when management shared that it could target a $90 billion AI chip revenue opportunity in 2027. However, the shares sank by 15% during the DeepSeek selloff. Since then, they’ve added 15% on catalysts such as Meta increasing its chip deployments. Here’s what Cramer said about Broadcom Inc (NASDAQ:AVGO) in September:
“Broadcom gave us results that showed a tad bit of weakness in artificial intelligence orders, and the pin action took down the whole darn cohort. I don’t believe AI is a bubble, but these stocks are still up a great deal, especially in August. And September tends to bring out sellers when you get just in-line numbers. That’s what we got from Broadcom. It was in line, it wasn’t a shortfall.”
“Ben Reitzes, who I quote a lot because he’s really smart, said Broadcom was hurt by some choppiness in Google orders. That wasn’t clear from the conference call, but it makes a lot of sense. That business will bounce back.”
“The issue here isn’t Broadcom’s reaction, which took down most of the tech. No, it’s the overreaction to Broadcom that seemed to cascade into finance and then anything cyclical. The pain was palpable. To me, this is all about the zeitgeist, not the facts, because so many companies are doing well despite the slowing economy. However, you can’t waste time arguing with the sellers who suddenly want nothing whatsoever to do with this market. Nothing’s going to stop them from taking profits out of fear.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: September 4th, 2024
Performance Since Then: 30.7%
NVIDIA Corporation (NASDAQ:NVDA) is Wall Street’s favorite AI GPU stock we mentioned in our introduction. Its entire narrative is built on AI data center spending and the nascent humanoid robot industry. NVIDIA Corporation (NASDAQ:NVDA)’s shares have gained 30.7% since Cramer’s remarks making them rank low in performance terms when compared to some other stocks in our list. The tepid performance is due to cost overruns and supply constraints of the Blackwell GPU. NVIDIA Corporation (NASDAQ:NVDA)’s shares dipped by 17% during the DeepSeek selloff. Here’s what Cramer has said about the stock in September:
“What about tech weakness as a recession signal? I keep hearing Nvidia may have missed its quarter due to economic softness. Let’s put that rumor to bed. The issue wasn’t demand; it was Nvidia’s inability to produce enough of its high-end Blackwell chips due to supply constraints. This wasn’t a demand issue.”
“Now, let’s address the overblown narrative surrounding Nvidia’s stock drop, which wiped out $279 billion in market capitalization. In isolation, that sounds terrifying, but keep this in perspective: Nvidia started the year with a $1.22 trillion market cap and soared to $2.93 trillion by the end of August. Yesterday’s drop to $2.65 trillion? Sure, it’s a big number, but in the context of a stock that’s up over 100% this year, it’s not as catastrophic as it seems.”
“This wasn’t the first time Nvidia’s market cap has dropped over $200 billion in a day, and it likely won’t be the last. Yet, I know what you’re thinking—Nvidia’s stock is on fragile ground. That’s fair. There are still far too many investors who don’t understand what Nvidia does or how it profits from the brainpower of CEO Jensen Huang and his team.”
“The stock can’t stabilize until these weak shareholders sell out. Meanwhile, we’re waiting to see how quickly Nvidia can get its Blackwell chip rolling and improve gross margins—the real reason for the stock’s recent pummeling.”
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q3 2024: 202
Date of Cramer’s Comments: September 4th, 2024
Performance Since Then: 18.40%
Alphabet Inc. (NASDAQ:GOOGL) is one of the poorest-performing mega-cap stocks on Wall Street. Its shares have gained a modest 18.40% since Cramer’s remarks, as they have bled nearly all gains made in December. Back then, Alphabet Inc. (NASDAQ:GOOGL)’s shares jumped by 11% after it announced its Willow quantum computing chip. However, they have shed 5% after the post-Willow peak as investors remain skeptical about the firm’s ability to generate massive profits with its Cloud business and AI. In his recent appearances, Cramer has remained upbeat about Alphabet Inc. (NASDAQ:GOOGL)’s other businesses such as YouTube. Here are his remarks from 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 October 25th, 2023, Google dropped $180 billion, and since then, it’s come back with a 25% gain—not bad, but it’s the only stock on this list that failed to beat the S&P, which jumped 32% in that time.”
“Next week, Justice goes to court to try to stop Google. The Department claims in its brief that Google abuses its monopoly power to disadvantage website publishers and advertisers who dare to use competing ad tech products in search of higher quality or lower cost matches. According to the brief, Google uses “its dominion over digital advertising technology to funnel more transactions to its own ad tech products, where it extracts inflated fees to line its own pockets at the expense of the advertisers and publishers it purportedly serves.”
“Now, Google was recently found to be engaged in anti-competitive behavior when it paid to become the default search engine for Apple. Yeah, they got nailed for that. I get it—they paid to reach a huge audience. Microsoft could have outbid them to make Bing the default search engine, but they didn’t. However, this new case is more absurd. The Justice Department is going after Google in a business where they’re already losing market share in the open market.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders In Q3 2024: 235
Date of Cramer’s Comments: September 4th, 2024
Performance Since Then: 44%
Meta Platforms, Inc. (NASDAQ:META) is a social media giant whose stock has been on a tear in today’s AI age. Since the firm is an AI beneficiary and not an enabler, investors haven’t been fearful of investing in its stock following the DeepSeek selloff. Meta Platforms, Inc. (NASDAQ:META)’s shares have gained 44% since Cramer’s remarks and have gained 22.9% year-to-date. Most of the stock’s gains have been because of cost-cutting initiatives at the firm which have meant that the shares marked 20 consecutive days of gains in February. 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.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q3 2024: 286
Date of Cramer’s Comments: October 7th, 2024
Performance Since Then: 26.5%
Amazon.com, Inc. (NASDAQ:AMZN) is a key player in the eCommerce and cloud computing industries. Its cloud business offers the firm with AI exposure. Since Cramer’s remarks, the shares have gained 26.5% primarily due to a strong third-quarter earnings report and analyst optimism about the firm’s ability to generate revenue through artificial intelligence orders. Year-to-date, Amazon.com, Inc. (NASDAQ:AMZN)’s shares are up by 3.84% but dipped by 4% in February after its fourth-quarter earnings saw cloud revenue growth by 19% to $28.79 billion but missed analyst estimates of $28.87 billion. Here’s what Cramer had said in September:
“First downgrade, Amazon by Wells Fargo titled “Positive Revision Story on Pause Reducing to Equal Weight”. Totally get it, lots of headwinds, stock’s abused from the so-called bad quarter when Amazon fell from $184 to $161. Since then, it’s traded as high as $195, but it’s $186 as of last week. It’s time to sell? I’m not so sure.”
“What do these analysts fear? Amazon spending a lot on a ton of initiatives, worries about Walmart impact. So there’s a slight estimate cut, too. Wait a second. I say. How many times, how many times has Amazon been up against headwinds? Do you know how many times the company’s made some inexplicable moves? This is nothing new. Yet Amazon has always come back. It’s in their culture. It’s in their DNA. It always does.”
“I remember a year and a half ago when I was screaming at them because Amazon Web Services was underperforming. Came right back. Last time they reported, I was in disbelief at the Olympics and the attempted assassination of Donald Trump led to a light third-quarter sales guide. I was apoplectic at the Alexa losses and what happens? Comes right back.”
“So I say knock yourself out and sell it if you have to. Let me ask you, did you sell Amazon at $161 after that last supposedly bad quarter? How did it feel when the stock didn’t bounce to $195? Once again, I think it’s just a matter of time before Amazon bounces back. As usual. No hurry. Stock does seem to be headed lower, I’ve no doubt about that. I get it. But sell to buy it lower? Can you really get back in that? Too hard.”
AMZN is a stock Jim Cramer talked about last year. 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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