In this article, we’ll explore Jim Cramer’s Top 10 Must-Watch Stocks Today.
Jim Cramer recently discussed Nvidia’s latest earnings report on Mad Money. Despite a solid quarter, the company did not exceed the high expectations set by investors and failed to deliver its key products quickly enough to sustain its previous extraordinary performance. This disappointment led to a relatively muted market reaction, with only modest movements in major indices.
“Turns out that the company is mortal after all. Even though it reported a great quarter last night, it wasn’t able to deliver its key product fast enough to allow the company to do what it’s done so many times before: blow away earnings and raise forecasts to unfathomable levels. The company didn’t define today’s trading because it failed to dazzle in the way that so many money managers had come to expect. The major indices didn’t move much—the Dow advanced 244 points, the S&P was basically flat, and the NASDAQ dipped just 0.23%.”
Cramer expressed relief that the company’s quarter brought an end to the unrealistic expectations that had surrounded the stock. He emphasized that the company is not a miracle company but a firm specializing in high-performance chips that enhance productivity and problem-solving. Cramer noted that the market had unfairly elevated the company to a status where it was expected to perform miraculous feats beyond its actual capabilities.
“My response to all this? Goodness gracious! With this quarter’s results, the albatross of perfection is now gone; the millstone has been shredded. As much as I love the company, I’m thrilled that we can finally return to a market where there are many important stocks representing many important trends, rather than just one stock capturing the attention of legions of investors—many of whom have no idea what it does, let alone where it fits into the technological food chain.
What I’m saying is that, in the end, the company isn’t a concept; it’s not a cult; it’s not a miracle maker. It’s a company that designs incredibly fast chips that enable rapid calculations to help companies speed up problem-solving and improve productivity. You can’t ask the company’s Blackwell chip to cure cancer or put a man on Mars, and it certainly can’t bring about world peace. Yet, when you look at how this stock was trading in recent weeks, the market was basically asking CEO Jensen Huang to do all these things and more.”
He believes the company should be held as an investment, not traded based on fluctuating expectations. While acknowledging that the stock had become overvalued before the quarter, Cramer maintains his belief in the company’s value.
“Right now, it looks like the company can expand customer gross margins—important but not earth-shaking, especially since the enterprise is the client, not you; you won’t even see it. Now that this quarter is in the rearview mirror, my hope is that those who wagered on the stock, rather than invested in the company, will finally move on. No more exacting comparisons with AMD, please. We need to go back to a world where we value the company like any other company, with a reasonable price-to-earnings (P/E) multiple based on its growth.”
Jim Cramer also addressed the question of whether AI investments are yielding tangible returns, especially in terms of improving gross margins. He noted that many of the most convincing AI applications have taken time to develop. Early investment in AI often focuses on training models, and only after this stage can AI start delivering practical benefits. Cramer emphasized that AI’s most significant impacts are typically in enterprise settings rather than for individual consumers.
“For the skeptics, the most compelling AI use cases have been slow to develop. Much of the early investment goes toward training AI models. Only after this process comes to fruition can artificial intelligence actually do something useful for users. It’s important to note that most areas where AI is truly useful are enterprise-oriented.
As a consumer, you may not see how effective these models can be. Keep the term “enterprise” in mind, because it means it’s not aimed at individual users. That’s why tonight I’m going to start something new: a running list of some of the best AI use cases we’ve heard about.”
To highlight the progress in this area, Cramer is introducing a new feature: a running list of notable AI use cases. He pointed out that some AI applications have been in use for a while. For instance, OpenAI generates revenue from its ChatGPT offerings, with a free version available alongside paid subscriptions like ChatGPT Plus for $20 a month and more expensive options for businesses.
“Some of these have been around for a while. For example, there’s a free version of ChatGPT, but OpenAI generates revenue from $20-a-month ChatGPT Plus subscriptions, as well as higher-priced offerings for enterprise customers. The same goes for Gemini and Claude, which have similar pricing. Microsoft’s Copilot functionality and Adobe’s Firefly tools have also been part of their broader product suite since late last year. Both are money makers.”
Our Methodology
This article reviews a recent episode of Jim Cramer’s Mad Money, where he highlighted ten stocks with notable growth potential. It also examines hedge fund perspectives on these stocks, ranking them from least to most owned based on hedge fund ownership.
At Insider Monkey we are obsessed with 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).
Jim Cramer’s Top 10 Must-Watch Stocks Today
10. MP Materials Corp.(NYSE:MP)
Number of Hedge Fund Investors: 28
MP Materials Corp. (NYSE:MP) stands out as a strong investment due to its crucial role as a top U.S. producer of rare earth materials, which are essential for electric vehicles (EVs), renewable energy technologies, and advanced electronics. Despite a $34 million net loss in Q2 2024 from reduced revenue in rare earth concentrates, MP Materials Corp. (NYSE:MP) remains vital in the supply chain, especially for neodymium-praseodymium (NdPr) oxide, which is key for EV motors.
Jim Cramer finds MP Materials Corp. (NYSE:MP)’s situation difficult due to the company’s ongoing struggle to achieve profitability. He stresses that for any company, including MP Materials Corp. (NYSE:MP), being profitable is crucial. Without overcoming its current financial losses, MP Materials Corp. (NYSE:MP)’s future remains uncertain.
“I find this situation challenging because while they need to make a lot of money, they’ve been struggling. It’s crucial for companies to be profitable, and if they don’t overcome their current losses, it becomes irrelevant. That’s where I stand with MP.”
The positive long-term outlook of MP Materials Corp. (NYSE:MP) is driven by the growing global need for rare earth elements, fueled by the rapid increase in EV adoption and the expansion of renewable energy. MP Materials Corp. (NYSE:MP)’s integrated approach—covering mining, processing, and refining—positions it well to benefit from this rising demand. MP Materials Corp. (NYSE:MP) is also increasing its production capabilities, which should improve revenue and profitability as market conditions recover.
Analysts are generally optimistic, with some price targets reaching $30, showing confidence in MP Materials Corp. (NYSE:MP)’s strategies and its role in reducing U.S. reliance on Chinese rare earth supplies. Moreover, MP Materials Corp. (NYSE:MP)’s efforts to enhance domestic production align with trends favoring local supply chains, offering further growth potential in the long term.
Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding MP Materials Corp. (NYSE:MP) in its first quarter 2024 investor letter:
“Materials were the leading detractors to performance. Our exposure to MP Materials Corp. (NYSE:MP) was the main culprit, as the stock declined by 28% as prices for their critical commodity output NdPr exhibited weakness due to seasonality factors and lower demand from Electric Vehicles and other industrial applications. Despite the sell-off, we increased our position in the stock as we believe the long-term fundamentals remain intact.”
9. SAP SE (NYSE:SAP)
Number of Hedge Fund Investors: 31
Jim Cramer highlighted SAP SE (NYSE:SAP), a major company that manages technology for large enterprises. He emphasized that SAP SE (NYSE:SAP) has a strong product offering and noted the potential of its prowess in enterprise software.
“SAP is a giant company that helps coordinate technology at the enterprise level. We know they’ve got a really good product. We’ve had them on before. “
Ave Maria World Equity Fund stated the following regarding SAP SE (NYSE:SAP) in its first quarter 2024 investor letter:
“SAP SE (NYSE:SAP) provides enterprise application software products worldwide. SAP is successfully transitioning from a perpetual license model to a SAAS model, which we believe will lead to an increase in TAM (total addressable market), higher margins and lower capital intensity.”
SAP SE (NYSE:SAP) is an attractive investment due to its strong financial performance, leading position in cloud computing, and strategic focus on artificial intelligence (AI). In its recent Q2 2024 earnings report, SAP SE (NYSE:SAP) showed a solid 9.7% increase in revenue to $8.29 billion, surpassing expectations. Cloud revenue is a key growth driver, with estimates suggesting a 24% to 27% rise in cloud and software revenue, reaching €29.0 to €29.5 billion in 2024.
SAP SE (NYSE:SAP)’s AI initiatives, including SAP Joule, which will handle 80% of its most common transactions by the end of 2024, are set to improve efficiency and enhance customer experience. This AI-driven approach is likely to boost SAP SE (NYSE:SAP)’s market appeal further. Additionally, SAP SE (NYSE:SAP)’s stock recently hit a 52-week high of $220.32, signaling strong investor confidence. Analysts are generally positive, with many raising their price targets, reinforcing a bullish outlook for SAP SE (NYSE:SAP)’s continued growth and leadership in the market.
8. Best Buy Co. Inc.(NYSE:BBY)
Number of Hedge Fund Investors: 37
Jim Cramer finds it highly satisfying when a stock he supports performs exceptionally well despite being targeted by short sellers. Best Buy Co. Inc.(NYSE:BBY)’s recent sales report exceeded expectations, countering predictions that it might follow in Circuit City’s footsteps and struggle against Amazon Inc. (NASDAQ:AMZN). Cramer notes that Best Buy Co. Inc.(NYSE:BBY)’s results showed an improving trend, with sales picking up towards the end of the quarter.
“Few things in this business are more satisfying than outsmarting the short sellers who bet against one of your favorite stocks, which then performs remarkably well. That’s how I feel about Best Buy, the Consumer Electronics chain. They reported much better-than-expected sales this morning, defying the naysayers who predicted it would be the next Circuit City, a company destroyed by Amazon.
After this excellent quarter, I think it’s all coming together for Best Buy. The quarter showed what’s known as better-than-expected cadence—meaning sales improved towards the end of the period. They even gave a positive guide because August, which was not included in the quarter, was better than July. As CEO Cory Barry confidently stated in a recent conference call, “We delivered strong results in our domestic tablet and computing categories.” These two categories, by the way, contributed 6% to our sales growth, which bodes well for the back-to-school season and the new AI-enabled PCs that will ship in volume this quarter.
Entering the quarter, 6.5% of the float had been sold short because bears believed Best Buy would lower estimates due to its excessive appliance exposure. However, the computing segment of the business outperformed appliances, which had been a drag. Consequently, the stock surged 14%. With this momentum, I believe it can go even higher.”
Best Buy Co. Inc. (NYSE:BBY) is an appealing investment due to its strong financial performance and favorable outlook. For Q2 2025, Best Buy Co. Inc.(NYSE:BBY) reported earnings per share (EPS) of $1.34, beating expectations by $0.18, and revenue of $9.29 billion, which also exceeded forecasts. Although revenue declined from the previous year, Best Buy Co. Inc.(NYSE:BBY) jumped over 17% after the earnings report, signaling positive investor sentiment.
Best Buy Co. Inc.(NYSE:BBY) has raised its annual profit forecast, indicating confidence in future growth. Best Buy Co. Inc.(NYSE:BBY)’s commitment to returning value to shareholders is demonstrated by its quarterly dividend of $0.94 per share, which translates to an annual yield of 3.76%. Best Buy Co. Inc.(NYSE:BBY) has a strong track record of increasing its dividend by an average of 18.7% annually over the past three years. Combined with a high return on equity of 47.56% and a manageable debt-to-equity ratio, Best Buy Co. Inc.(NYSE:BBY)’s solid financial health and shareholder focus make it a promising investment opportunity.
