Jim Cramer, host of Mad Money, discussed on Monday how investor sentiment surrounding tech stocks has shifted over the past three months. He pointed out that not long ago, tech was seen as the leader of the market. However, that is no longer the case. Cramer noted that he had hoped for a thriving AI infrastructure space.
“Three months ago, I thought we could be in for all sorts of exciting new technology. We went out to that GTC conference with Jensen Huang, but so far this year AI has only evolved in the direction of lower stock prices.”
READ ALSO: Jim Cramer Looked At These 23 Stocks Recently and Jim Cramer Put These 16 Stocks Under a Microscope.
Despite the tech stocks getting hit, Cramer expressed that he has not abandoned his belief in the potential of AI infrastructure. He encouraged investors to focus on the strongest companies within the AI space, especially since prices have dropped significantly. He noted that it makes it less of a chase and more of an opportunity. Cramer also noted that while he had initially expected that enterprise software companies utilizing AI would perform well in 2025, it has not played out as he expected.
“I figured we’d see a group of enterprise software companies that harnessed AI tools to make big money this year. No, that didn’t happen at all. I’m not giving up hope but look at the enterprise software companies who seem to be leading the way in AI. They’ve become some of the worst performers in all of tech.”
Cramer also touched on the global trade situation and specifically addressed the impact of President Trump’s trade policies. He recalled that back in January, he was more focused on the tech-specific trade restrictions imposed by former President Biden, such as bans on advanced chip sales to China.
However, he noted that the situation has escalated into what looks like a full-scale trade war. Cramer said that while it appears that the U.S. might be emerging victorious in some ways, the cost could be high and he called it a “Pyrrhic victory”. He remarked that the current administration under President Trump does not appear in any hurry to reverse the trade limitations. He added:
“Given the new president’s attitude toward our trading partners, I bet he’ll double down before rolling this stuff back. He is more likely to ban the selling of any chips, even potato chips at this point.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 31. 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 Lightning Round: 8 Stocks in Focus
8. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 33
Pointing out The Wendy’s Company (NASDAQ:WEN) PE of around 16, a caller inquired about the company, and in response, Cramer said:
“Okay and when I see that dividend, that’s almost 7%, that is what I call a red flag. You can’t really have a dividend that high apart from…. unless you’re a utility company. I don’t trust Wendy’s. Eat the Baconator, don’t own the stock.”
Wendy’s (NASDAQ:WEN) operates and franchises fast-food restaurants famous for their hamburgers. It also manages real estate and property leases. The company focuses on restaurant management and franchising. Cramer was similarly bearish on the company in February as he remarked:
“Wendy’s? No. You’re gonna sell Wendy’s tomorrow and you’re going to buy Texas Roadhouse because that’s the one. We had them on Friday. They’re monster good. We bought it for the Charitable Trust. You’re buying, you’re buying TXRH tomorrow.”
7. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
A caller asked what Cramer thought of Dell Technologies Inc. (NYSE:DELL) going into the second quarter and Cramer remarked:
“Look, I think… Can I just call the bottom in Dell right here right now? Do you mind if I do that at $91? I mean… it’s at nine times earnings. Mike, someone wake up Michael Dell…. Dell is at $91, I have to say fine and by the way, just on Nvidia, let me just say, it surprises you the most when it’s the most hated, and when I woke up this morning, I said it was the most hated stock I can recall in all of 2025.”
Dell (NYSE:DELL) designs and sells a variety of products and services, including storage, servers, networking, desktops, workstations, and cybersecurity solutions. The company also offers customer financing, support, and consulting services.