Like all of us, Jim Cramer is always wondering what’s next for the stock market. So far, the year has seen AI continue to dominate the market, accompanied by the Federal Reserve and the 2024 US Presidential Election. Now, with the election over and investors pondering over the incoming administration’s tariff policies, like us, Cramer is also focused on the Federal Reserve.
The reason why the Fed and tariffs are related is because the latter can cause inflation to force the former to keep interest rates higher for longer. While it tries to decipher what’s ahead for AI, Wall Street is also wondering about the pace, magnitude, and frequency of the Federal Reserve’s 2025 interest rate cut cycle. This nervousness is reflected in bond yields touching 4.38% on Friday, and asset manager Apollo Global warning that four key inflation indicators appear to be reaccelerating. As per Apollo, the Core CPI, the Core PCE, the Supercore CPI, and the Supercore CPE have all started to rise again.
In Mad Money aired last week, Cramer also had the Fed in mind. Cramer, in his show, commented on the nervousness in the market. The television show host wondered why the stock market wasn’t responding to semiconductor stocks doing well. He started out by sharing that “I hate the endless focus on the Fed. By everybody. Because it detracts you from benefiting from long-term performance for your stock portfolio.” This is because Cramer believes that “every little signal from the Federal Reserve brings out predictions, causing many people to sell good stocks when they are freaked out.”
He did add that the economic data shows that there will be dissent at the Federal Reserve when it comes to further reducing interest rates at the upcoming December meeting. Cramer shared that “while I don’t think the data is cool enough to be positive about the prospects of more cuts for now, I also don’t want you to make decisions purely on what the Fed does. Contrary to popular belief, there’s more to investing than monetary policy. And I wish everyone knew that. They don’t.”
On the topic of tariffs, Cramer had plenty to share in November. He started out by analyzing the performance of the benchmark S&P index between mid-2017 and the start of 2020. Cramer pointed out that “this is where we start to get the real tariff action from the first Trump administration.” He shared that “Trump imposed tariffs on steel, aluminum, solar panels, and washing machines among other goods.” While “all these helped the industries in question . . .the broader market didn’t like that we were triggering a global trade war.”
Cramer pointed out the index’s performance between January 22nd and December 24th, 2018 to bolster the view that tariffs weren’t great for the stock market. However, before you write them off, consider his remarks. According to Cramer, during this time period, “the S&P 500 lost 18% of its value. Of course, some of that is because the Fed got much more aggressive about raising interest rates through this period. Taking them up. a 100 basis points that year. But it definitely wasn’t just the Fed. You can see from the chart that virtually every time we got more tariffs, the S&P would roll over, every time China retaliated, we’d sell off.”
Yet, according to Cramer, “once the Fed decided to stop tightening at the very end of 2018, the S&P was finally able to find a floor.” Following this, the market “rebounded like crazy” as part of a “bullish trading cycle, one that continued until Covid hit in 2020. Long story short, the market couldn’t handle the trade war when the Fed was tightening. But as soon as the Fed started easing, all those losses evaporated.”
Using charts from Jessica Inskip, Cramer compared the last intersection of the Fed and Trump tariffs with today’s environment. He outlined that the “Fed is now our friend.” Why is that so? Well, according to Cramer, as soon as the Fed stopped tightening, the market “stopped reacting as aggressively to the trade war.” He shared that Inskip believes that “something like a trade war can certainly hurt us badly when the market’s already trending bearishly. But if we’ve got a bullish trading cycle like we do right now, then she’s not worried as long as we can maintain this cycle.”
So, as Cramer remains cautiously optimistic about the stock market’s future, we decided to see how his views about stocks have stood the test of time.
Our Methodology
To make our list of the 15 stocks Jim Cramer has made bold predictions about, we compiled his statements about top tech stocks and ranked them by the date the statements were made.
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. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders In Q3 2024: 91
Date of Cramer’s Comments: 9-12-24
Cramer commented on enterprise resource planning and AI infrastructure provider Oracle Corporation (NYSE:ORCL) as part of his Morning Thoughts program aired in September. He outlined:
“Oracle’s amazing transformation continues. Just days after reporting strong fiscal 2025 first-quarter results that sent its stock soaring, executives guided for fiscal 2026 revenues of at least $66 billion, above the $64.5 billion consensus estimate. Shares are jumping Friday. Price target bumps are flooding in, too. Larry Ellison’s prediction that Oracle will one day operate at least 1,000 data centers, up from 162 currently, is looking more and more realistic.”
Since his remarks, Oracle Corporation (NYSE:ORCL)’s shares have gained 5.4% but they faced some turbulence in December after the firm’s fiscal second-quarter earnings were a bloodbath. Not only did the firm’s Q2 revenue of $14.06 billion miss analyst estimates of $14.10 billion, but its midpoint Q3 guidance of $14.3 billion also missed $14.65 billion in estimates. The stock sank by 7% in the aftermath, indicating the high expectations that Wall Street has for the firm to deliver with the billions of dollars it is spending to acquire expensive NVIDIA GPUs and scale up AI infrastructure.
14. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders In Q3 2024: 58
Date of Cramer’s Comments: 9-19-24
On a broadcast of Mad Money aired in September, Cramer pointed out that the China exposure of semiconductor equipment provider Lam Research Corporation (NASDAQ:LRCX) was a worrying sign. He also shared that the firm’s partnership with Intel might not do it any favors given the latter’s troubles. According to him:
“Lam Research is a key semiconductor capital equipment maker. Right now, they’re being suppressed by a lack of Chinese orders, not to mention Intel slowing its European manufacturing plans. If not for those issues, I think it’d be a great buy right now. But given that the industry has problems, I say let it come down even more. However, Lam is the best in the group.”
Turns out he was right on the dot as Lam Research Corporation (NASDAQ:LRCX)’s shares have lost 3.36% since Cramer’s warning. The loss came after chip equipment giant ASML slashed its 2025 guidance to €30 billion – €35 billion. The guidance cut spooked investors who worried that lower capital expenditure by fabrication companies would end up harming firms like Lam Research Corporation (NASDAQ:LRCX). The firm’s third-quarter earnings did provide some respite as the stock soared by 6.6% over the next two days following Q4 revenue guidance of $4.30 billion surpassing analyst estimates of $4.24 billion.
13. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders In Q3 2024: 104
Date of Cramer’s Comments: 10-04-24
Chip designer Advanced Micro Devices, Inc. (NASDAQ:AMD)’s CEO Dr. Lisa Su was nominated as Time Magazine’s CEO of the year in December. In October, Cramer was also full of praise for the executive who has capitalized on Intel’s troubles to carve out a place for it in the data center industry and grow PC market share. According to him:
“Not to be outdone, Lisa Su, the CEO of AMD, will hold an analyst day and it’s entitled Advancing AI 2024. It starts at noon. Today, when the stock was plummeting, I told investing club members at my 10:20 morning meeting that Su’s presentation could show this charitable trust holding in a whole new light, even as they’ve been raising their AI sales forecast quarter after quarter after quarter. I think it’s a buy ahead of the meeting, although the stock did run eight points after we talked about it at the morning meeting.”
Since his remarks, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares have lost a whopping 22%. The bearishness is built on the firm’s third-quarter earnings and a BofA downgrade. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stature as a growth stock meant that when it guided $7.5 billion in revenue for the current quarter, which was in-line with analyst estimates, investors were spooked that it would be unable to capitalize on AI growth. Then, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares fell by 5.6% after BofA downgraded it to Neutral from Buy and slashed the price target to $155 from $180 as it grew wary of a growth in PC sales in 2025.
12. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q3 2024: 286
Date of Cramer’s Comments: 10-07-24/10-08-24
Amazon.com, Inc. (NASDAQ:AMZN) received a lot of attention from Cramer on a Mad Money episode aired in October. The firm’s narrative relies on its high-volume retail business and its high-margin and recurring revenue AWS cloud division. Cramer’s comments revolved around a Wells Fargo downgrade, which he wasn’t impressed by, to say the least. In his characteristically blunt manner, the host outlined:
“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.”
Cramer’s anger was justified as since that day, Amazon.com, Inc. (NASDAQ:AMZN)’s shares have soared by a cool 25.8%. During this time, not only did the firm’s third-quarter revenue and EPS of $6.82 billion and $0.92 beat and meet analyst estimates, but analysts from Redburn Atlantic boosted their share price target to $235 from $225 to unlock additional momentum for the shares.
11. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders In Q3 2024: 121
Date of Cramer’s Comments: 10-07-24/10-08-24
Cramer spent a large portion of Mad Money aired in October discussing the fight analysts were having around Netflix, Inc. (NASDAQ:NFLX). The argument was based on whether Netflix, Inc. (NASDAQ:NFLX)’s shares price in future growth and whether the firm has more room to grow revenue without adding subscribers:
“We got a genuine analyst gunfight over the stock of Netflix. Barclays downgraded the stock from equal weight to underweight. That’s actually hold to sell while keeping their very low price target at $550. At the same time, Piper Sandler upgraded Netflix from neutral to overweight, hold to buy, and took the price target from $650 to $800.
“These argue, and I’m gonna quote, ‘Netflix’s premium valuation is predicated on revenue growth being at least in the low double digits for some time’. But they think it’s going to be hard for the streaming giant to hit those numbers. In fact, Barclays argues that even if Netflix hits its revenue targets, the stock’s current valuation pretty much assumes the company can more than double its subscriber base, which is a pretty tall order. As they see it, Netflix is now a slowing growth story like, it trades like a steady growth story. In their view, while the company still has levers that can boost growth, these all come with serious trade-offs… Barclays actually believes that Netflix will find it harder and harder to keep delivering, which is a problem because the stock now trades at over 30 times next year’s earning estimates. Barclays also argues that as Netflix moves from a pure subscription-based system to something more of a hybrid subscription and advertising model and the company invests in things like video games [and] live events, its margin expansion will slow.” “Interestingly, this upgrade’s also based on valuation but in a much different sense. Right at the top of the note, Piper explains, ‘Our prior neutral stance was centered around valuation, but now we appreciate the company is expensive for a reason.’ Then they continue, ‘There are still levers to be pulled in the ads-free business, particularly around pricing while the ads tier has been largely de-risked heading into next year.’ In direct contrast [to] the Barclays downgrade, the Piper analyst says, ‘Consensus margins could also prove to be conservative in 2025 and 2026 based on the incremental margins over the last few quarters.’
“The Piper Sandler analysts argue, ‘Netflix still has levers to drive non-ads business.’.. They still think though that there’s room for subscriber growth. But more importantly, Piper claims that Netflix has more pricing power, which means they can generate double-digit revenue growth without adding as many new people. In fact, they expect a price increase soon on the back of a very strong content ramp
“. … the last time Netflix reported, they had an incredibly strong demand from advertisers. Management decided to approach the space carefully. Piper thinks there’s room for some upside surprise in the ad front going forward. The work I’ve done on this shows you that they can target ads better than almost anybody in the world… As the pivot continues to streaming, we gotta expect the company’s gonna maintain its leadership position, particularly as it adds more and more live content.
“I flat-out disagree with Barclays’ bearish assertion [that] Netflix can’t hit the revenue estimates. After a period in 2022 and 2023, where Netflix did indeed miss sales numbers several times, they’ve now beaten top-line expectations for four straight quarters. More importantly, with their ad business now ramping plus additional revenue from paid sharing plans, the company has more optionality than ever when it comes to how they’re gonna hit those revenue targets. And with Netflix no longer giving quarterly subscriber metrics starting next year, I think they can focus solely on hitting revenue expectations. That’s the new key metric.
“Barclays is very negative here. Piper Sandler argues that even if Netflix can’t keep expanding margins like it did this year, that doesn’t mean it can’t keep putting out more gradual growth. And we agree with that line of thinking.
“… Barclays argues that the stock’s premium valuation requires the company to do certain things. And Piper Sandler says that Netflix is expensive for a reason… Maybe I’m wrong to be so blunt, but I honestly wouldn’t get too hung up on the price-to-earnings multiple for this company. It’s never pointed you in the right direction of the stock. What’s more important is whether or not Netflix makes the numbers. If the company beats the earnings expectations as it has in 10 of the last 12 quarters, then we don’t need to worry about a stock’s premium valuation because the share price will look a lot cheaper in retrospect. If the company can’t make the numbers, then the stock’s got no reason to be expensive and it’s going to get hit. But the bottom line, until we hear of anyone canceling the Netflix subscriptions, maybe because of price or about any real troubles with the advertising business, which we don’t, or about the out-of-control cost and video games or live events, none of which has happened then I think Netflix deserves the benefit of the doubt and that’s why I’m sticking with the bullish side of this trade. The bear thesis? I don’t know. Too hypothetical.
“… Barclays argues that the stock’s premium valuation requires the company to do certain things. And Piper Sandler says that Netflix is expensive for a reason… Maybe I’m wrong to be so blunt, but I honestly wouldn’t get too hung up on the price-to-earnings multiple for this company. It’s never pointed you in the right direction of the stock. What’s more important is whether or not Netflix makes the numbers. If the company beats the earnings expectations as it has in 10 of the last 12 quarters, then we don’t need to worry about a stock’s premium valuation because the share price will look a lot cheaper in retrospect. If the company can’t make the numbers, then the stock’s got no reason to be expensive and it’s going to get hit. But the bottom line, until we hear of anyone canceling the Netflix subscriptions, maybe because of price or about any real troubles with the advertising business, which we don’t, or about the out-of-control cost and video games or live events, none of which has happened then I think Netflix deserves the benefit of the doubt and that’s why I’m sticking with the bullish side of this trade. The bear thesis? I don’t know. Too hypothetical.”
Since the divide between Barclays and Piper Sandler, Netflix, Inc. (NASDAQ:NFLX)’s shares have gained 27%, so safe to say, at least for the short term, Cramer’s bluntness was justified. Part of the rise is on the back of the firm airing Mike Tyson’s return to the ring through his fight with YouTube Jake Paul. The stock also rose by 11% in October after it added 5.1 million subscribers and a flurry of analyst price target raises led the median share price target to jump to $760 from $706.38. Netflix, Inc. (NASDAQ:NFLX)’s shares soared to an all-time high in December after JPMorgan increased the share price target to $1,010 from $850 on the back of higher advertising revenue and a strong content pipeline.
10. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Number of Hedge Fund Holders In Q3 2024: 53
Date of Cramer’s Comments: 10-09-24
Cramer was extremely bullish about chip design IP provider Cadence Design Systems, Inc. (NASDAQ:CDNS). The firm is one of the few of its kind that provides the building blocks when it comes to designing chips. The proprietary nature of its technologies provides Cadence Design Systems, Inc. (NASDAQ:CDNS) with a wide moat, and here’s what Cramer had to say in October:
“Not an issue. Stay long [on] it. I just checked in with them again. I think they’re doing incredibly well. Cadence is a winner. Stay long [on] it. Buy some more.”
Cadence Design Systems, Inc. (NASDAQ:CDNS)’s shares have been on quite a ride since Cramer’s remarks. They fell by a whopping 11.7% a couple of days after Cramer’s comments after ASML’s 2025 guidance cut reverberated throughout the semiconductor equipment industry. However, Cadence Design Systems, Inc. (NASDAQ:CDNS) roared back to life at October-end, when its Q3 results saw it raise full-year annual profit per share guidance to $5.90 from an earlier 5.87. The roller-coaster of a performance continued in December, when after touching an all-time high, the stock tumbled after peer Synopsys’s weak quarterly results.
9. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders In Q3 2024: 235
Date of Cramer’s Comments: 10-10-24
Cramer was nothing short of praise for Meta Platforms, Inc. (NASDAQ:META)’s founder and CEO Mark Zuckerberg in October. The firm’s hypothesis relies on the advertising market which it dominates courtesy of its 3.2 billion user base. In the AI-era, Meta Platforms, Inc. (NASDAQ:META) has positioned itself as being able to provide advertisers with AI-based campaign options to help cut costs. Here’s what Cramer said:
“Honestly, how can you have a bull birthday party without inviting Meta, without inviting Mark Zuckerberg? I would never think of it. His last conference call told you a tale that made it sound like all ad campaigns will soon start on Instagram and reels. Am I going to doubt this fella? No. He has the AI to design the most effective targeted ads and you don’t need to hire an advertising agency. Much better return on investment.”
Meta Platforms, Inc. (NASDAQ:META)’s shares are up by 6.26% since Cramer’s remarks. Most of this optimism is due to TikTok’s troubles in the US as the firm continues to fight what appears to be a losing battle against a US ban. Meta Platforms, Inc. (NASDAQ:META) gains more users if TikTok is banned, making the investor optimism surrounding its stock unsurprising.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders In Q3 2024: 128
Date of Cramer’s Comments: 10-10-24
Broadcom Inc. (NASDAQ:AVGO) is one of the most diversified companies in the tech sector. Not only does the firm have wide exposure to semiconductor design and AI, but it also benefits from a high-margin, recurring revenue-driven software business through its cybersecurity arm. Both these factors were also on Cramer’s mind in October when he commented:
“Broadcom makes data center plumbing, but also has a broadband infrastructure business, including cell phones. Now, we had CEO Hock Tan on when he went to San Francisco. He told an incredible story. I was so excited, I was jazzed about it, but nobody listened. Well, now they’ll listen. Stock just hit an all the time high today. It’s not done. I’d hold onto it, especially since its VMware division helps data centers cut harbor costs and operate much more efficiently. And it has really turned the corner. I like that stock very much.”
Broadcom Inc. (NASDAQ:AVGO)’s been on quite a ride since his remarks, as while the shares are up by 21% since then, they actually fell by 14% by November end. However, all of this was reversed by mid-December, when the firm’s CEO shared during its fiscal fourth-quarter earnings call that it expects to earn as much as $90 billion from AI chips over the next three years. According to Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan, the firm can deploy as many as 1 million custom AI chips by 2025 by working with its three existing hyperscaler customers.
7. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders In Q3 2024: 43
Date of Cramer’s Comments: 10-10-24
Palantir Technologies Inc. (NYSE:PLTR) is one of the hottest stories in the AI-driven market due to several factors. These include its growing US commercial business that works closely with customers to implement AI projects and its close work with the US government to provide it with inroads into government AI use. Here’s what Cramer had to say on Mad Money:
“Okay, the next one may be the craziest stock of the year. It’s called Palantir. It’s a defense contractor, AI kicker. It’s been a very good company, but more important, it’s been a spectacular stock. In a year when the defense stocks and the AI stocks have been incredibly strong, this one is both, with a heavy emphasis on government contracts. Palantir’s become a cold stock at this point though. You need to know that individual investors just they can’t seem to stay away from it. They buy it morning, noon and night. Right after the closing bell, there’s this big burst of buying that makes the stock look even better than it went out in regular trading. The stock’s real expensive but, but it’s gonna stay expensive because Palantir software is apparently beloved by the Pentagon as well as its rapid fans. Would I buy it up 439% in the last two years? No, but I definitely wouldn’t short it.”
Since Cramer’s remarks, Palantir Technologies Inc. (NYSE:PLTR)’s shares have gained a whopping 74.5%, so at least he was right in recommending no shorting. The firm benefited from its earnings report being released a day before the US election. The report, which saw Palantir Technologies Inc. (NYSE:PLTR)’s $726 million in revenue and $0.10 in EPS beat analyst estimates sent the stock soaring by 20%. This was met by another 8.6% gain on election day.
6. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q3 2024: 202
Date of Cramer’s Comments: 10-14-24
Alphabet Inc. (NASDAQ:GOOGL), one of the biggest technology companies in the world, has faced a lot of weakness in 2024. This is because the firm has been in the crosshairs of the US government which has raised concerns of a potential breakup which can be devastating provided that Alphabet Inc. (NASDAQ:GOOGL) earns most of its money through search engine and advertising. These problems were also on Cramer’s mind when he shared:
“Now I don’t feel the same way, candidly, about Alphabet and in part, that’s because the government has made it much harder to own it, with this antitrust lawsuit that’s aimed for a breakup, something I’m very much opposed to. I’m also concerned about Alphabet’s ability to keep putting up strong earnings. Company now has a less defensible position because it’s become more of a media business and that’s a very competitive space… So, the stock’s a comeback kid and I am so glad we own some for the Charitable Trust.”
Since then, Alphabet Inc. (NASDAQ:GOOGL)’s shares have gained 15% but until November 22nd, the stock was flat. This was because the stock dealt with losses after reports of Meta having developed its search engine to rival Google Search and news of a potential sale of the Chrome web browser. However, Alphabet Inc. (NASDAQ:GOOGL)’s shares reversed tack in December after it announced a quantum computing chip breakthrough that can compute 10 septillion years worth of calculations in just five minutes.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders In Q3 2024: 158
Date of Cramer’s Comments: 10-14-24
Cramer spent a good part of his show in October criticizing Apple Inc. (NASDAQ:AAPL)’s bears. Since it derives 51% of its revenue, the firm’s hypothesis is tied to the iconic smartphone. This means that any perceived weakness in iPhone sales tends to drive the stock price. Here’s what was on Cramer’s mind:
“Today, two firms, JPMorgan and Evercore, talked about why you need to buy Apple. Both pieces stress that maybe people have gotten too bearish on the stock ahead of the earnings. So we might need to rethink all that negativity and just buy the darn thing. I mean, it’s bizarre that so many people are so eager to hate the stock of one of the greatest companies in history, especially when the stock’s been such a great long-term performer. Quizzical, isn’t it? Yet this happens whenever they launch a new phone. It feels like almost every day we come in and some analyst lowers their estimates because of tracker work that showed iPhone 16 lead times were short and there’s not much demand, right? I mean blah, blah blah.
“So many analysts have now shaded down their estimates for Apple that, get this, if business is simply okay, the estimates will prove to be too low. So these two bold analysts at JP Morgan [and] Evercore wanted to take the other side of the trade, the positive side. Plus, many of the objections to Apple may not hold as much water as they did even a couple [of] weeks ago. For example, we know a lot of people were worried about Chinese demand, but get this, if the Chinese government’s actually able to stimulate, right, the stimulus plan starts working well, don’t you think that China’s issues are a smaller concern, more money for consumers in China means more orders for the prestigious iPhone.
“This is why I always say own it, don’t trade it. The analysts always try to scare you out of Apple based on incomplete data and from a long-term perspective, think about it, they’re always wrong. If you sell Apple in the most recent bout of negativity, you miss a tremendous run over the past week. And then, you did it before that you missed another run, then another and another. No wonder they call this stock the Teflon Don or at least Ben Reitzes over at Melius, a big Apple supporter calls it that, and I like it.”
Since then, Apple Inc. (NASDAQ:AAPL)’s shares have gained 7.28% after tumbling by 4% in October. Some of this fall was based on, surprise surprise, a report by well-known analyst Ming-chi Kuo sharing that the firm had cut its iPhone orders. As for the recent share price rise, Wedbush’s Apple Inc. (NASDAQ:AAPL) permabull Dan Ives believes that Wall Street is starting to think that the iPhone 16 is the start of a supercycle and that the firm’s Chinese woes might soon be over.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: 10-14-24
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU designer. It is also the primary beneficiary of the current AI wave because of its product strengths. Cramer simply gave up when discussing getting the timing right for NVIDIA Corporation (NASDAQ:NVDA)’s stock. He stated:
“Now initially, NVIDIA got clubbed along with the whole market when the yen carry trade imploded. Then it came right back because that was only a temporary problem. Then NVIDIA got smacked down after its quarter, although it didn’t take out the blows from the previous sell-off. It’s been working its way back ever since. As we learned that demand for its next-generation super chip Blackwell is ‘insane’, that’s a technical term coined by Jensen, by the way. Next thing you know, the stock’s coming all the way back, but back with very few people who sold the stock. And before this, right, I mean they’re long gone and gone at much lower levels because they traded it, they sold it. Again, take this as a reminder that if you trade NVIDIA, you probably won’t be able to sell it high and then get back in low. The ship would’ve left without you. It’s too hard, people, it’s just too hard.”
NVIDIA Corporation (NASDAQ:NVDA)’s stock is down 2.8% since Cramer’s remarks so perhaps selling then would have been the right decision. Not only have supply issues with its Blackwell GPUs worried investors, but the shares have lost 7.50% in December after Broadcom’s stunning announcement of working with three hyperscalers to develop AI GPUs. You check out our coverage of Broadcom in this list for more details, but it appears that Wall Street might be opening up to the idea of alternatives being present to NVIDIA Corporation (NASDAQ:NVDA)’s products.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders In Q3 2024: 158
Date of Cramer’s Comments: 10-17-24
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer. Its 3-nanometer manufacturing process is the leading-edge technology in the sector and has allowed the firm to establish a wide moat for itself. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from close partnerships with firms like NVIDIA and Apple. Cramer was full of praise for the firm as he shared:
“… If you didn’t listen to Taiwan Semi’s conference call last night, you missed out on a performance that explains so much of what’s going on in this market, in the world.
I’m talking about the off-the-charts demand for chips that enable artificial intelligence. Those are almost all manufactured by Taiwan Semi, which is the crucial cog in the semiconductor machine. That’s how you know this move is for real.
This company is the biggest and the best. Last night was a tour de force show, especially for one customer, Nvidia. They might as well have entitled the conference call in praise of Nvidia because Nvidia is crushing it in partnership with this amazing Taiwanese company. I talk about Nvidia a great deal, but I don’t say much about Taiwan Semi, which is wrong. See, like most American semiconductor companies, Nvidia is actually more of a designer. Taiwan Semi is the company that builds the product.. You can’t have Nvidia without Taiwan Semi.” “How close are they? Let me quote from Doctor C. C. Wei, he’s a PhD and chairman and CEO of Taiwan Semi ‘So one of my key customers said the demand right now is insane.’ Well, the key customer is Nvidia. And like Nvidia’s redoubtable, implacable CEO Jensen Huang, Wei says that the demand for AI chips ‘is real, and I believe it is just the beginning of the demand.’
Bingo. There it is. Unlike ASML, the semiconductor equipment maker that gave you a sob story about the whole industry the other night, with the exception of AI, Taiwan Semi’s focused on the cutting edge of the industry. That’s what they are. They know it because they use it. As Wei said, ‘We have our real experience. We have been using AI and machine learning in our fab and R&D operations. By using AI, we are able to create more value by driving greater productivity, efficiency, speed, qualities.’
He goes on to explain that Taiwan Semi’s customers would say the same thing. What a contrast to the lame ASML call that caused so many people to sell Nvidia. Panic, panic, and once again revved up the chip obituary machine.”
Since Cramer’s remarks, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has gained 4.6% but the ride hasn’t been free of bumps. The drops during the way have primarily been driven by reports that the US had forbidden the firm from selling AI chips to China. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is already forbidden from selling high-end chips to Huawei, and the reports surrounded some chips that had managed to escape the existing restrictions. However, the stock recovered following bullish analyst reports.
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q3 2024: 99
Date of Cramer’s Comments: 10-18-24
Tesla, Inc. (NASDAQ:TSLA) is one of the most unique companies in the world. This is because while its narrative is partly dependent on the EV industry, a large portion also depends on CEO Elon Musk. Cramer spent quite a bit of time on this during his show as he pointed out Musk’s difficulties in convincing investors about Tesla’s Cybercab plans:
“After the close Wednesday, it’s mega MAGA man, Musk and the Tesla show. People didn’t like his recent self-driving presentation, so I think he’s going to try harder to deliver a really good set of Tesla numbers because they have been lowered and lowered and lowered so you can beat them. That’s when Elon Musk does his best work.”
Since then, Tesla, Inc. (NASDAQ:TSLA)’s shares have soared by 98% mostly due to Musk’s closeness with President-elect Donald Trump. The post-election boom saw the firm’s shares rise by 39%, and they have been further bolstered by reports that the incoming administration will not only scrap a controversial crash reporting rule but also loosen the requirements for self-driving cars. Self-driving is a key facet of Tesla, Inc. (NASDAQ:TSLA)’s hypothesis, with analysts having priced in quite a bit of revenues from it into the share price. Cramer’s enthusiasm about Musk was clearly correct.
1. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders In Q3 2024: 57
Date of Cramer’s Comments: 10-18-24
Texas Instruments Incorporated (NASDAQ:TXN) is an American chip manufacturing company. Its products enable gadgets and computer systems to convert signals, manage power, and conduct other operations. This provides it with little exposure to the AI sector. Cramer was aware of this as he shared:
“After the close, we hear from Texas Instruments. We’ve been hearing a lot about how semiconductor companies are in the doldrums, the ones without AI, that is. Tex Instruments falls into that category but this company’s become much more focused. I like it ahead of the quarter, even though it has a little more cyclicality than most chip makers.”
True to form, Texas Instruments Incorporated (NASDAQ:TXN) has lost 3.47% since Cramer talked about it. However, he was right in ‘liking’ the firm ahead of the quarter as the shares soared by 6.5% following the firm’s third-quarter earnings which saw it beat analyst revenue and EPS estimates of $4.1 billion and $1.37 by posting $4.15 billion and $1.47. The share price gain indicated pent-up demand in the stock since Texas Instruments Incorporated (NASDAQ:TXN) missed analyst guidance estimates of $4.07 billion by posting $4 billion. The stock then boomed by 7.5% following the election, only to lose all gains immediately afterward. Texas Instruments Incorporated (NASDAQ:TXN)’s shares marked a small 2.5% gain in November after Wells Fargo initiated coverage, set an Equal Weight rating, and a $215 share price target. However, unless a broader recovery occurs in consumer electronics and associated markets, Texas Instruments Incorporated (NASDAQ:TXN) might be unable to see sizable catalysts.
TXN is a stock Jim Cramer got right. While we acknowledge the potential of TXN as an investment, our conviction lies in the belief that 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 TXN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
