In this article, we will take a detailed look at Jim Cramer’s Latest Calls: Top 10 Stocks.
Jim Cramer in a recent program talked about Bitcoin and reminded investors that he has always believed in the cryptocurrency.
“I want to discuss Bitcoin, really. I do—not to the detriment of stocks but in addition to stocks. I come to praise Bitcoin, not buy it. First, let’s dispel the idea that I’ve never believed in Bitcoin. Now, if you search YouTube, you can see that I first bought Bitcoin on September 15, 2020, when it was at just over $10,000.”
Cramer said he likes the idea of Bitcoin being the store of value and said he always recommended investors to allocate 10% of their portfolio to the currency. However, he again urged investors to look to stocks for the rest of their portfolios.
“I heard Fed Chief J. Powell talk about how he believes people are buying Bitcoin as a store of value, like gold, because there’s not much transaction done in Bitcoin. I’ve always endorsed keeping up to 10% of your portfolio in gold as a kind of insurance against the world’s lunacy. But for years now, I’ve also been saying Bitcoin is a fine alternative to gold for that 10% position. Why not?
I think the federal budget deficit is at impossible levels…Sure, you might have been all in on Bitcoin. You know what? Terrific. Me too. But what if I told you there are indeed other ideas hidden in plain sight in the stock market? Ideas that you could have owned with the other 90% of your portfolio that wasn’t Bitcoin.”
Cramer then mentioned a few stocks that have posted dramatic gains since their IPOs to show investors the power of stock investing.
READ ALSO Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks
For this article, we watched the latest programs of Jim Cramer and picked 10 stocks he recently talked about. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Navitas Semiconductor Corp (NASDAQ:NVTS)
Number of Hedge Fund Investors: 8
Jim Cramer was recently asked about Navitas Semiconductor Corp (NASDAQ:NVTS). Here is what he said:
“I’ve got to tell you that company’s losing a lot of money. I think you can take a flyer at three bucks, but understand it’s losing a lot of money and it’s a flyer.”
Meridian Contrarian Fund stated the following regarding Navitas Semiconductor Corporation (NASDAQ:NVTS) in its Q3 2024 investor letter:
“Navitas Semiconductor Corporation (NASDAQ:NVTS) designs and produces highly efficient power semiconductors, leading the way in Gallium Nitride (GaN) technology, which enables superior energy efficiency and charging speeds compared to traditional silicon. Handling GaN is challenging, and Navitas has a significant competitive advantage with its technology. We initially invested in early 2023 when the company lost favor due to a downturn in the highly cyclical mobile phone end-market. The stock declined in the period when revenue guidance came in lower than expected, driven by continued weak conditions in the EV and solar markets, which delayed customer product launches. During the quarter, we increased our position, confident in the long-term secular outlook for energy-efficient semiconductors, Navitas’ ongoing technological leadership, and its strong balance sheet, with over $100m in net cash. We believe the company is well-positioned to weather the current cyclical downturn.”
9. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)
Number of Hedge Fund Investors: 16
Jim Cramer was recently asked about his thoughts on Recursion Pharmaceuticals Inc (NASDAQ:RXRX). He said he was “wrong” about his initial excitement around the stock.
“I liked the story ……I have to tell you, you know what? That makes me wrong. I knew that Nvidia had a stake in it; they still do, and that made me get excited about it. I think that at this point, then, they did a secondary offering and it didn’t hold. Now, I think at $5, it is worthwhile speculation”
AI-based drug discovery is one of the biggest trends major companies and venture capitalists are betting on. Some estimates suggest AI-led drug discovery could soon be a $100 billion business. Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is an AI drug discovery play, as Recursion Pharmaceuticals Inc (NASDAQ:RXRX) uses high-dimensional data and predictive results for drug discovery and development. Last year, Nvidia decided to invest $50 million in Recursion Pharmaceuticals Inc (NASDAQ:RXRX) in a partnership that would see the combination of Recursion Pharmaceuticals Inc’s (NASDAQ:RXRX) chemical and biological datasets with NVIDIA DGX™ Cloud and other AI tech stack for drug discovery.
Here is what Lux Capital has to say about Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) in its Q2 2022 investor letter:
“As we discussed before describing “Extensionalism”, one of our theses has been the growing convergence between the biological and technological, the organic and inorganic, man and machine. Lux has made investments in the digitization, technological capture and amplification of each of the human senses. Consider vision and speech: we have technology that can rapidly recognize and label objects from pixels (companies that span defense, biotechnology, manufacturing and transportation like, Recursion (NASDAQ:RXRX), and others that can rapidly generate videos, images, and even more complex language from simple inputs.”
8. Dow Inc (NYSE:DOW)
Number of Hedge Fund Investors: 31
Jim Cramer was recently asked about Dow Inc. Here is what he said:
“Dow Inc (NYSE:DOW), this is a tough one. I think that Jim Fitterling does a great job, but it needed China, it needs up prices to go up, it needs a much stronger economy. It yields 6.29%, a lot of people bought it in the ’50s thinking that it wouldn’t break down through the 5% level. If you don’t have growth and you’re selling at 21 times earnings, you’re not going to be able to do anything at these prices. I’m willing to put a position on but understand that it did—the yield turned out to be not the kind of protection that we thought.”
Dow is operating in three segments: Packing & Specialty Plastics, Intermediates & Infrastructure and Materials & Coatings. The stock is down about 24% so far this year as pricing headwinds, unfavorable environment amid elevated interest rates and lower volumes continue to take a toll on business. Dow’s business is exposed to market cycles and interest rates. Dow Inc (NYSE:DOW) thrived when interest rates fell to near-zero levels in the midst of the COVID-19 pandemic. Amid an unfavorable environment, Dow’s management has been cutting costs and improving efficiency.
7. Super Micro Computer Inc (NASDAQ:SMCI)
Number of Hedge Fund Investors: 33
In late November, Jim Cramer was asked about Super Micro Computer Inc (NASDAQ:SMCI). Cramer said he won’t go back to the stock amid alleged accounting irregularities.
“My view is accounting regularities equals sell, and I never go back. I will be happily willing to miss another 20 points; it doesn’t matter. Accounting irregularities equal sell has saved me millions of dollars.”
However, Super Micro Computer Inc (NASDAQ:SMCI) shares soared recently after the company said an investigation found no misconduct in the company’s accounting practices. The firm also said it will be replacing its finance chief.
Carillon Scout Mid Cap Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q2 2024 investor letter:
“Super Micro Computer, Inc. (NASDAQ:SMCI) was the top detractor to returns in the second quarter. Super Micro designs and manufacturers server solutions based on modular and open-standard architecture. This modular approach combined with a strong engineering culture helps the company to supply the market with advanced servers and rack-scale compute solutions quickly. After an impressive return in the first quarter, the company offered disappointing near-term earnings guidance, though we do not believe its long-term opportunity has diminished. We expect continued strong growth for several years, although the range of outcomes is quite wide; it is difficult to forecast AI server market growth with precision.”
6. Zoominfo Technologies Inc (NASDAQ:ZI)
Number of Hedge Fund Investors: 37
Jim Cramer was recently asked about Zoominfo Technologies Inc (NASDAQ:ZI). He said the company does not have enough specialty and moat.
“Technology and marketing company, I—you know, not enough specialty, not enough moat. Let’s pass on that.”
Zoominfo Technologies Inc (NASDAQ:ZI) is aiming for growth in 2025 by concentrating on enterprise clients. The company’s shift away from riskier small and medium-sized businesses and its focus on high-value enterprise and mid-market customers is expected to help stabilize its revenue.
Still, ZoomInfo faces tough competition in a fast-changing industry, particularly from Salesforce (CRM). Salesforce’s Sales Cloud and its extensive CRM platform offer a robust solution for customer relationship management and sales enablement, creating a major hurdle for ZoomInfo.
Zoominfo Technologies Inc (NASDAQ:ZI) tries to stand out with its proprietary database, which provides sales and marketing teams with actionable insights, giving it a unique edge despite Salesforce’s large user base.
5. Autozone Inc (NYSE:AZO)
Number of Hedge Fund Investors: 47
Answering a question about Aptiv in a latest program on CNBC, Cramer said:
“I am concerned that many auto parts may be made in China. We don’t know. AutoZone had a very good quarter. I would go with Autozone Inc (NYSE:AZO).”
Autozone Inc (NYSE:AZO) is an American retailer of aftermarket automotive parts and accessories. Bears used to argue that the company would have a tough time amid the rise of EVs since the demand for traditional auto parts would decline. However, ever since the EV demand slowed down, that argument fell apart. The traditional gasoline-powered cars still dominate U.S. roads, accounting for over 98% of all registered vehicles as of May 2024. Even if EV sales were to match those of internal combustion engine (ICE) cars, it would take a considerable amount of time for EVs to make a noticeable impact on the overall vehicle landscape.
Appalaches Capital stated the following regarding AutoZone, Inc. (NYSE:AZO) in its Q3 2024 investor letter:
“Passing on cost structure benefits, sometimes called “Shared Economies of Scale,” is not the only form of these positive feedback loops. AutoZone, Inc.’s (NYSE:AZO) moat also deepens as it grows. While most would think of the company as a very good retailer, I would say that the business model is more nuanced than that. The automotive aftermarket is a highly fragmented and specialized industry. There are hundreds of companies producing automotive components, most of which are specific to one of thousands of vehicle models. In 2022, there were over 280 million registered vehicles in the U.S., further adding to the fragmented nature of the value chain.8 Outside of large metropolitan areas with public transportation, people rely heavily on their vehicles in all facets of their daily lives. Not having a working car poses significant problems. Whether it’s getting to work or shopping for groceries, if something breaks on your vehicle, you need it fixed immediately.
The combination of all of these factors leads AutoZone to maintain a large and diverse inventory that is ready on a moment’s notice. Manufacturers and vendors cannot sell directly to consumers because it would take too long for the product to arrive, and it would not be economical to build out their own distribution network given the low turnover of the inventory. AutoZone is heavily relied upon by their suppliers, and as a result, their suppliers give them very favorable payment terms allowing them to stock more inventory while tying up less working capital. The creditors of these suppliers additionally acknowledge the prowess of AutoZone, providing more flexible credit to suppliers if their inventory is sent to AutoZone. With more inventory, they can better meet the needs of their customers, resulting in higher sales and a more efficient network of stores, which in turn leads to a more effective service for suppliers. This is a very effective flywheel. AutoZone is not new to the portfolio, but I do enjoy writing about it.”
4. Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Investors: 52
Answering a question about Reddit, here is what Cramer said in a latest program on CNBC:
“I think Reddit’s fabulous. What can I say? I know it’s up a great deal, but I think Steve Huffman’s doing a fabulous job. I’m not a seller.”
With over 80 million daily active users, Reddit Inc (NYSE:RDDT) remains one of the fastest-growing social media platforms in the world. While Facebook and Twitter show signs of maturing growth, Reddit Inc (NYSE:RDDT) still has huge upside potential as more and more people flock to Reddit discussion boards for authentic opinions and discussion. User input from millions of people on various topics freely accessible to anyone is Reddit Inc (NYSE:RDDT)’s moat. As of 2023, users posted 16 billion comments on the platform, according to the company. That’s why companies are flocking to pay money to Reddit to use its data to train their AI models. Reddit Inc (NYSE:RDDT) has a licensing agreement with Alphabet Inc.’s Google worth $60 million to help train large language models. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years. The company generated approximately $20 million from AI content deals last quarter and expects to exceed $60 million by year-end. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years.
3. Intel Corp (NASDAQ:INTC)
Number of Hedge Fund Investors: 68
A caller recently asked Jim Cramer on his program on CNBC whether Intel Corp (NASDAQ:INTC) has the potential to double or triple. Cramer categorically said no to this question and recommended the questioner buy AMD instead.
“I don’t think it will. I think it can go up slowly. I know that Qualcomm was rumored to be a suitor, but it looks like they’ve cooled that. Intel Corp (NASDAQ:INTC) doesn’t have the balance sheet to go up that fast, and it’s just not going to be a rocket ship. I would prefer you to buy AMD instead.”
In 2025, Intel Corp (NASDAQ:INTC) is expected to generate $4–$5 billion in operating cash flow against a projected $20–$23 billion in capital expenditures. Intel reported $5.1 billion in operating cash flow and spent $18.1 billion in the first nine months of this year.
ClearBridge Large Cap Value Strategy stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter:
“While the market environment clearly was a headwind in the third quarter, several of our large positions also faced challenging conditions, which negatively impacted results. In the information technology (IT) sector, Intel Corporation (NASDAQ:INTC) has come under additional pressure due to continued softness in the company’s core PC and server markets as well as concerns on the company’s longer-term competitive position. While Intel’s turnaround is not happening overnight, we are constructive on the outlook into 2025: the company’s product positioning should be much improved and it should be positioned to gain market share in a cyclical upswing in which it has strong earnings power. A somewhat adverse spending environment due to AI myopia has weighed on shares, but we still think the market is undershipping PCs and general servers following a COVID normalization period that saw demand get pulled ahead and then languish as companies froze IT budgets. The installed base is now getting older, and we expect a strong refresh cycle into next year. The delay is actually beneficial to Intel, whose product positioning will be all the more improved. While our investment case is not predicated on an M&A transaction, and we believe one is unlikely, the expression of interest in the company speaks to the value of the assets, which we think still trade at a meaningful discount to fair value.”
2. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 106
Jim Cramer was recently asked about Regeneron during a program on CNBC. He said he prefers Eli Lilly And Co (NYSE:LLY).
“Regeneron is a quandary. I’ve got to tell you, I expected sales to be better, but they’re not. I don’t want to give up on a stock down at $749, but I do prefer Eli Lilly And Co (NYSE:LLY) even at $900 because, you know, I think that $900 is the next stop for Lilly at $813. I’m not sure what the next stop for Regeneron is.”
LLY shares fell after Q3 results at the end of October. There were several points in Eli Lilly And Co (NYSE:LLY)’s report that spooked investors. Management revised down the upper range of Lilly’s revenue guidance, citing “inventory decreases in the wholesaler channel” for key growth products Mounjaro and Zepbound in Q3. The updated outlook reflects ongoing supply chain challenges as these products face unprecedented demand.
However, Eli Lilly And Co (NYSE:LLY) bulls believe long-term catalysts for the stock are well intact.
To meet strong demand for its tirzepatide products, Lilly introduced new vial formats for Zepbound and Mounjaro, which improve accessibility and reduce supply strain on injection pens. The company has also been enhancing its go-to-market strategy, securing extensive U.S. health plan coverage for Zepbound and exploring expanded tirzepatide indications, including Medicare-eligible treatments like obstructive sleep apnea.
Another key catalyst comes from oncology. Eli Lilly And Co (NYSE:LLY) is seeing robust demand for its non-incretin medicines, notably Verzenio, which grew 32% year-over-year in Q3, aided by higher U.S. prices and a 70% adoption rate in metastatic breast cancer treatments. To further capitalize on Verzenio’s success, Lilly is testing it in combination with Imlunestrant in a Phase III trial, aiming to enhance patient outcomes and address current inefficiencies in metastatic ER+ breast cancer care.
Madison Sustainable Equity Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q3 2024 investor letter:
“Alphabet Inc.,Eli Lilly and Company (NYSE:LLY), Qualcomm Incorporated, Microsoft Corporation, and Apple Inc. were the largest detractors. After first half strength, Eli Lilly has traded in a range this quarter, despite dramatically raising revenues and earnings following their second quarter report. There is a lot of noise in the Diabetes-Obesity space as many companies are looking for opportunities to get into the market, which is expected to exceed $100 billion in revenues in 2030. We have not seen any competitor data that would dethrone Novo Nordisk or Lilly but are watching carefully. Manufacturing capacity is a key barrier to entry and Lilly and Novo have locked up capacity for the next several years.”
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Last month, Jim Cramer talked about the underperformance of NVIDIA Corp (NASDAQ:NVDA) after its quarterly results and countered the bear arguments impacting the stock. Cramer said NVIDIA Corp (NASDAQ:NVDA) still has no competition and other companies are making their own chips because Nvidia has so much demand that it’s struggling to keep up.
“NVIDIA Corp (NASDAQ:NVDA) stock is struggling in a typical post-earnings miasma. We know that nothing’s wrong—we just saw the numbers; they were terrific. Yet, there’s a growing skepticism that things have peaked, that the rate of growth is slowing, that the bank for the buck is lessening, and that the competition is increasing, especially from Amazon. Of course, we hear this every time.
I want to unpack these supposed negatives—not that I know who packed them first. Amazon’s not going to go into the high-end chip business away from Nvidia. It simply needs a regular supply of other chips. NVIDIA Corp (NASDAQ:NVDA) has a shortage because they literally can’t find enough manufacturing capacity to meet the demand, so Amazon makes some of them itself.
What matters, though, is that Nvidia welcomes the competition—if you can call it that. Here’s the deal: OK, NVIDIA Corp (NASDAQ:NVDA) still has the best technology by far, in my view. It has no competitors. Amazon remains a huge, and I am told from both sides, happy customer.”
Simply beating earnings estimates is not enough for NVIDIA Corporation (NASDAQ:NVDA) anymore. The stock fell despite reporting better-than-expected numbers for the latest quarter. However, analysts are sensing a growth slowdown. Nvidia’s Q4 revenue guidance missed the buy-side whisper number of $39 billion, and the company expects gross margins to keep shrinking next quarter. For Q4, non-GAAP gross margin is projected at 73.5%, down from 75% in Q3. NVIDIA Corporation’s (NASDAQ:NVDA) biggest customers, cloud hyperscalers — which account for 50% of its revenue — are increasingly developing in-house AI chips and collaborating with competitors like AMD. This raises concerns about Nvidia’s medium-to-long-term growth in demand and margins.
Columbia Seligman Global Technology Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“The fund held an underweight position in NVIDIA Corporation (NASDAQ:NVDA) relative to the S&P North American Technology Sector, which was a headwind on performance following impressive returns from the company in 2023 and the first two quarters of 2024. NVIDIA’s stock fell during periods of the quarter after the company reported second quarter earnings. While the earnings came in higher than expectations, investors were concerned that the company did not guide earnings high enough, signaling a potential slowdown in AI buildout. NVIDIA’s demand remains strong and the company has forecast orders for upcoming quarters. The question that remains is whether the company can meet the demand for its AI processors and connectivity chips. Our team continues to remain cautious on NVIDIA’s high customer concentration. Microsoft and Meta have driven a significant amount of the company’s revenue, which presents added risk.”
While we acknowledge the potential of NVIDIA Corp (NASDAQ:NVDA), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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