On Thursday, Jim Cramer, the host of Mad Money, pointed out that the ongoing fears surrounding President Donald Trump’s aggressive tariff policies continued to impact the market. The concerns, coupled with uncertainty regarding the implementation of these tariffs, contributed to significant market declines that day. He highlighted that the Dow dropped by 537 points, the S&P 500 fell by 1.39%, and the Nasdaq tumbled by 1.96%. Cramer stated:
“It can all be traced to a gratuitous message on his social media platform that said that April 2nd, tariffs are going to go on, not that anyone thought they wouldn’t.”
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Cramer pointed out that if one did not know better, it might seem as though the president purposely wanted to derail a recovering market. He added that the administration’s actions felt like a reminder of the way Walmart runs its business, always striving to lower prices for consumers, but in this case, the prices being slashed are in retirement accounts like 401(k)s and IRAs. Cramer further explained:
“What I think President Trump doesn’t understand right now is just how easy it is to send this market down.”
Cramer noted that the market has become extraordinarily sensitive to trade issues, and there is often something that goes wrong whenever new actions are announced, especially when they are driven by the president’s frustration.
Cramer also raised concerns about the unpredictability of the president’s decisions, which are often influenced by anger and frustration. He expressed confusion over why Trump makes these moves, suggesting that some believe the president actually prefers quick, dramatic downturns in the market, rather than a slower, more controlled descent. He added:
“But the quick and noisy retribution to the action of our thoughtless trade associates takes us by surprise and the uncertainty is crushing us.”
One example Cramer highlighted was Trump’s sudden announcement of a 200% tariff on French wine, champagne, and other alcoholic products coming from Europe. The president posted the statement in all caps, emphasizing its importance. Cramer pointed out that while such a move might benefit certain producers like those in Napa, it would likely cause a significant price increase on beverages like champagne, which would see their prices triple on store shelves. He questioned whether the White House fully understood the consequences of such decisions and said that he did not know.
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 13. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus
7. NANO Nuclear Energy Inc. (NASDAQ:NNE)
Number of Hedge Fund Holders: 10
A caller asked Cramer’s opinion on NANO Nuclear Energy Inc. (NASDAQ:NNE) and he replied:
“I think you just sell Nano Energy. I think the first time we’ll see any nuclear… in this country is 2033 and that’ll be done by GE Vernova if it’s lucky.”
NANO Nuclear Energy (NASDAQ:NNE) is dedicated to progressing microreactor technology, specifically working on the development of two unique reactors: ZEUS, a solid-core battery reactor, and ODIN, which utilizes a low-pressure coolant system. Interestingly enough, Cramer held a similar opinion in December 2024 when he stated:
“No earnings. I do believe in the nuclear story, which is why I say GE Vernova. But let me tell you what to do right now, right here, tomorrow I want you to take out almost all of your cost basis and let the rest run and then you can never lose money and how happy is that? What is that? That’s called Nirvana.”
6. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 34
A caller mentioned that they are looking at Archer Aviation Inc. (NYSE:ACHR) and in response, Cramer said:
“Well, keep looking but do not press the button because in this kind of market, that company is an invitation to your funeral.”
Archer Aviation (NYSE:ACHR) designs, develops, and operates electric vertical takeoff and landing (eVTOL) aircraft, with the goal of transforming urban air mobility. When Cramer was asked about the company in February, he remarked:
“Here’s the deal, because you said it’s for your son, I’m going to okay it. Why? Because strange things happen. A lot of people think Archer’s a little out there, like it’s ‘Lost in Space.’ But they just received FAA certification for a Public Training Academy. Maybe this thing is for real. If it’s for your boy, fine. He’s got his whole life ahead of him. Don’t put your money in, put his.”
5. STERIS plc (NYSE:STE)
Number of Hedge Fund Holders: 48
A caller highlighted that STERIS plc (NYSE:STE) is at the rule of 40 and noting its 30% overseas revenue, mentioned that its growth is slowing down. Cramer replied:
“Geez, I always liked Steris. I think that that’s just a great kind of just a regular everyday healthcare company that I think should do very well. I did not know about the slowing. I think it’s just a strong company and I’d be a buyer of it.”
STERIS (NYSE:STE) provides infection prevention products and services, including sterilization equipment, maintenance, and support for healthcare, medical device, and pharmaceutical industries, as well as consumables for life sciences. The London Company stated the following regarding STERIS plc (NYSE:STE) in its Q4 2024 investor letter:
“STERIS plc (NYSE:STE) – STE underperformed in 4Q reflecting cautious health care sentiment, modestly lower growth for medical device sterilization, and the re-emergence of litigation concerns. After a noisy few years, we believe STE is getting back onto a steady trajectory of mid-to-high single digit revenue growth and low double-digit earnings growth. Our view of STE’s competitive positioning in the medical sterilization business is unchanged, and we do not expect litigation to have a material impact on the value of the company.”
4. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 61
Cramer mentioned Illumina, Inc. (NASDAQ:ILMN) during the episode, and here’s what Mad Money’s host had to say:
“Well, Illumina is a challenged company and I don’t really care for it. I do prefer Thermo Fisher, TMO, they do a better job. And I, we own Danaher for the Charitable Trust and here we’re betting on a management change because right now, that company’s run much more poorly than it should be.”
Illumina (NASDAQ:ILMN) specializes in genetic and genomic analysis by offering sequencing and array-based solutions, including instruments, consumables, whole-genome sequencing kits, and targeted resequencing kits, along with various testing and support services. It is worth noting that in 2021 when Cramer was asked about the company, he stated:
“Look, Illumina is a fantastic company. I’m not just saying that because we know [Dr. Scott Gottlieb] is on the board. Illumina is a winner. They made a fantastic acquisition. They are gene sequencer parts. … I would buy the stock.”
Since his comment was aired in December 2021, Illumina (NASDAQ:ILMN) stock declined around 76%.
3. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 78
A caller mentioned that they have held Arista Networks, Inc. (NYSE:ANET) for some time and have benefitted from its gains and this is what Cramer had to say in response:
“No, Arista’s been an amazing stock for many years and that’s because Jayshree Ullal is such a fantastic executive. Right now, it’s caught up in the data center negativity. At this point, this stock is now down 50 straight points. I’m gonna bet on Jayshree here. I would buy it.”
Arista Networks (NYSE:ANET) offers cutting-edge networking solutions tailored for data centers, campuses, and routing, with an emphasis on AI-powered switches and software designed for automation, monitoring, and security. Toward the end of February, discussing the company, Cramer remarked:
“I thought they reported a good quarter. I know people are worried about the Meta business. I think the Oracle business can make up for that. But there are other people who feel like, you know what, everybody’s shooting at them right now. I think it can bounce, but I know that the competition has gotten tougher. Let’s leave it at that.”
2. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 84
When Cramer was asked about Lam Research Corporation (NASDAQ:LRCX), he said:
“I like Lam very much. Right now, it’s in the crosshairs of a lot of different geopolitical concerns. It’s one of those stocks that I think is deeply involved with the negativity right now. It’s a shame because Tim Archer’s not a negative guy and they are a fabulous company. I would own the stock.”
Lam Research (NASDAQ:LRCX) focuses on the design, production, sales, refurbishment, and upkeep of equipment essential for integrated circuit manufacturing. Over the past year, LRCX stock went down more than 15%. It is worth noting that Cramer was equally bullish on the company stock in January when he said:
“That stock is so cheap. Oh, I wanna buy it. I wanna buy. We have so much semi in the Charitable Trust, but that stock is so, the cheapest I’ve seen in a long time. I really like LRCX.”
1. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 120
Cramer was asked about Vistra Corp. (NYSE:VST) during the lightning round and here’s what he said:
“Okay, if you believe that the data center is coming to end the world, why do we need more power? Why do we need more utilities? If you think it’s okay then I think at this point, I would actually pull the trigger on Vistra.”
Vistra (NYSE:VST) is a company that supplies electricity and generates power for a diverse group of customers, ranging from residential to commercial and industrial sectors. Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”
While we acknowledge the potential of Vistra Corp. (NYSE:VST) 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 time frame. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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