Jim Cramer in a latest program on CNBC said that President Donald Trump’s new tariffs were much worse than expected. Cramer believes investors were getting “tired” of worrying about the tariff threat and went into a “bring it on” mode ahead of the Wednesday announcement.
“Regular viewers know that I’ve never been a huge fan of free trade. It would be fine if everybody plays by the rules, but we’re the only country that plays by the rules. I want fair trade instead, which means tariff those who tariff us just as hard. Of course, I’ve been hoping for reciprocal tariffs, and that’s what we allegedly got, even if they were far more severe than I’d hoped for. With reciprocal tariffs, we hammer specific countries for putting up specific trade barriers or subsidizing specific industries. While we got reciprocal tariffs, I never expected them to be this high, nor did many other people. From Wall Street’s perspective, Trump might as well have used a meatax, which is what we were most afraid of. The term reciprocal meant nothing in the end; the term punitive is more accurate.”
Cramer Calls China an ‘Insidious Octopus’
Cramer called China an “insidious Octopus” and mentioned how the country used several “loopholes” to enter the US and European markets. However, he believes the tariffs will result in higher prices for consumers. Cramer said Trump does not “care” about falling stock prices or rising consumer prices.
“Trump doesn’t seem to care about the stock market this time around. Why should he care about certainty, which I’ve said over and over again is what makes investors happy? He’s not trying to make investors happy. He’s not about happiness for us. He’s about making these countries bend to his will, and if it causes inflation, then it causes inflation. He never promised you a rose garden stock market, and I sure didn’t see one in the Rose Garden today.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each company 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. GE Aerospace (NYSE:GE)
Number of Hedge Fund Investors:
Jim Cramer was recently asked about GE Aerospace and whether the company can take share from competitors like Boeing and Howmet. Cramer recommended that investors buy the stock.
“I think the answer is they can take a ton. They — and you have to, you have to buy it and buy it like mad because what’s going to happen is there’s going to be so much servicing of these planes, and that’s where they make the biggest money. And don’t forget, you’re getting Larry C, who’s one of the greatest executives in America.”
Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:
“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.
We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”
9. Rivian Automotive Inc (NASDAQ:RIVN)
Number of Hedge Fund Investors: 31
Jim Cramer was recently asked about Rivian Automotive Inc (NASDAQ:RIVN). He reiterated his bearish view on the stock:
“I don’t care for the balance sheet. If they had a better balance sheet, then I would say fine. I know they’ve gotten some money from others, but it takes a long time to go public. People misunderstand how long it took for Tesla to be able to get there, and Tesla had, you know, it had a whama jamama musician at the top of it. And these guys — RJ Scaringe is good, but I do worry about the financing.”
Meridian Hedged Equity Fund stated the following regarding Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2024 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a US-based electric vehicle manufacturer focused on the design, development, and production of electric adventure vehicles, pickup trucks, and commercial delivery vans. We own Rivian because we believe the company is a future leader in the growing electric vehicle market with a strong brand, compelling products, and a vertically integrated business model. During the quarter, Rivian’s stock price was driven by its progress on cost reduction initiatives and management’s stated confidence in achieving positive gross margins by the end of 2024. The recent announcement of a joint venture with Volkswagen, involving up to $5 billion in investment, also significantly boosted Rivian’s financing outlook and validated its technology. We trimmed our position in Rivian given the strong performance in the quarter.”
8. CAVA Group Inc (NYSE:CAVA)
Number of Hedge Fund Investors: 32
Jim Cramer in a latest program on CNBC recommended investors to begin piling into restaurant chain company CAVA Group Inc (NYSE:CAVA) shares. Here is how Cramer explained his bullish case for the company:
“I think it’s an excellent long-term, what we call a regional-to-national story. They had 367 locations at the end of last year, and their stores are doing very well. They’ve got a ton of room to expand from a regional to a national player — that’s right, go all over the country. For the record, Chipotle stock was never cheap either. I don’t see any signs of the concept losing momentum. When Cava reported its latest quarter, it delivered 21% same-store sales growth — for heaven’s sake! Now the stock’s down 55% from its high, you have my blessing to start buying Monday. And if it keeps falling, you know what you should do — buy, buy, buy!”
7. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Investors: 46
Jim Cramer was recently asked about MGM Resorts International (NYSE:MGM). He said he would not want to own the stock:
“You are rolling the dice on MGM Resorts International. I’m not a dice roller, I am a card player, and I like it very much. But I wouldn’t want to own that one.”
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter:
“MGM Resorts International (NYSE:MGM) – Hospitality and gaming company MGM Resorts was a top detractor for the quarter and the year. Despite relatively strong execution by the company and opportunistic repurchases of discounted shares, the market did not like the company’s quarter-to-quarter volatility, especially in the second half of the year. When making the necessary adjustments, MGM’s core Las Vegas properties continued to grow nicely if boringly in the low-mid-single digit range during the year. MGM remains one of our larger share repurchasers in the portfolio, demonstrating its commitment to shareholder returns. The company’s hidden assets in online gaming and Asia also showed progress as the year went on. We remain confident in the management team, led by CEO Bill Hornbuckle, as they navigate these challenges and focus on long-term value creation.”
6. Viking Holdings Ltd (NYSE:VIK)
Number of Hedge Fund Investors: 49
Jim Cramer in a latest program on CNBC recommended investors to buy Viking Holdings Ltd (NYSE:VIK).
“I am a big fan of the cruise lines going forward. To me, they represent a great value, and Viking’s a unique player with an impressive focus on rich American baby boomers. We watched with glee as Viking stock glided higher and higher throughout last year and even the first few weeks of 2025. Eventually, they peaked at 53 bucks and change in early February, just before the market-wide selloff. Since then, the stock’s fallen back to 40, down roughly 25% from its highs just over a month ago. Again, like I explained when I told you to buy Royal Caribbean on Wednesday, the cruise lines are different from other travel plays. They represent incredible value versus traditional vacation alternatives, especially if you wanted to drink heavily. And that’s still true of the upscale Viking Cruises. But for Viking in particular, we have a fresher company-specific catalyst. On Tuesday morning, the company reported an excellent quarter with inline revenue and impressive 99-cent earnings, speeding off a 36-cent basis. No one paid any attention to it because of the market-wide selloff. Management also shared some very positive commentary about the full-year forecast, with CEO Torstein Hagen noting the company was growing capacity for its core products by 12% this year, with the delivery of 11 new ships. They’re already 88% booked for the 2025 season, so it sounds like smooth sailing for Viking at present. And we got this update after the tariff reign of terror had already started, with the stock down meaningfully to the point where it now roughly trades at 17 times this year’s earnings estimates. I think it’s another one that’s worth buying right here.”
5. Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Investors: 52
Jim Cramer in a latest program on CNBC recommended investors buy Reddit Inc (NYSE:RDDT) shares on the recent pullback. Cramer said the only bear case for the stock is if we hit a recession, the possibility of which is low according to him.
“They reported a terrific quarter with revenue growth accelerating all the way to 71%. The problem here is that this is exactly the kind of stock that people dump whenever we get hit by a market-wide meltdown — it’s almost programmed. The only scenario in which I’d get more bearish on Reddit Inc (NYSE:RDDT) fundamentals would be if the current period of macro uncertainty turns into an outright recession because a recession would really hurt their advertising business. In a recession, anything that depends on ads does get crushed. But I don’t think we’re headed for a recession, which means Reddit Inc (NYSE:RDDT) is pretty darn enticing now that the stock’s practically been cut in half. Right now, this thing’s selling for — okay, these numbers might freak you out, Al, but don’t — roughly 58 times this year’s earnings assessments and 39 times next year’s. Okay, it’s not crazy for a great regional-to-national story. I’ve seen this over and over again.
Plus, based on the way Reddit Inc (NYSE:RDDT) been beating the estimates, I wouldn’t be surprised if the stock ultimately proves to be much cheaper than it looks right now — if only because future earnings are likely to come in higher than expected. Again, as long as there’s no recession and this thing continues to spread and grow — not just nationally but all over the world — Reddit Inc (NYSE:RDDT) is a winner, and I think it’s going to be very, very big internationally.”
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q4 2024 investor letter:
“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”
4. Lam Research Corp (NASDAQ:LRCX)
Number of Hedge Fund Investors: 58
Jim Cramer in a latest program on CNBC said that he prefers Lam Research Corp (NASDAQ:LRCX) over Applied Materials.
“All right, Applied Materials is number three. After, I like Lam Research, and then I like KLA, and then I like Applied Materials. They have a lot of China exposure that makes people very, very worried. I think Tim Archer from Lam is a better one if you want to be in capital equipment, but I’ve got to tell you, capital equipment is so tied up with China that I can’t just get behind it anymore, even though I love these companies. We’ve got to straighten things out with China.”
Columbia Seligman Global Technology Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q4 2024 investor letter:
“Lam Research Corporation (NASDAQ:LRCX) was a disappointing position for the fund during the quarter, despite strong long-term returns for the company stock. Escalating tensions between the United States and China have impacted Lam’s returns as U.S. restrictions on high-technology exports to China, particularly advanced AI chips, have been a major negative for chip providers. The company was impacted by the U.S. election and a victory for former president Trump raised concerns around potential tariffs for semiconductor manufacturing equipment during his next term.”
3. PepsiCo Inc (NASDAQ:PEP)
Number of Hedge Fund Investors: 58
Jim Cramer in a latest program on CNBC praised PepsiCo Inc (NASDAQ:PEP)’s $1.95 billion deal to buy prebiotic soda company Poppi and appreciated the company’s moves to diversify its portfolio amid changing consumer preferences. Cramer also said he likes CEO Ramon Laguarta’s admission that GLP-1 weight-loss drugs do have an impact on consumer appetite for snacks:
“CEO of PepsiCo actually admits that people on GLP-1 could be a factor, and he’s had smaller form factor Frito-Lays, of which I use, are just terrific. It’s a recognition that people who use GLP-1 don’t finish the bag, so give them something smaller. I like the fact that he’s just not sitting there and taking it. David, some of these other guys are in such denial, it is painful.”
2. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Jim Cramer in a latest program discussed the market uncertainties stemming from President Trump’s tariff policies and said the following about the Mag. 7 group of stocks.
“You can buy some low multiple techs, industrials, and banks here. We did that for the charitable trust today, right under the teeth of the selloff. I would not jump back into the Magnificent 7 because, as of tonight, there is no “Mag 7” anymore. I came up with that name, and I’m scrapping it right now — no moniker fits the two or three that remain viable. And I’m not going to put it out there — there’s nothing magnificent about Tesla or Nvidia.”
Tesla’s EV sales are falling all over the world as the company faces challenges from competitors. Even if Elon Musk increases his focus on fixing the company’s problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.
Things aren’t looking good for Tesla in Europe, either. For example, in Germany, Tesla delivered just 1,429 new cars in February, down 76% from the same month last year. In contrast, battery-electric vehicle (BEV) registrations surged 30.8% during the month.
Tesla Inc’s (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“The largest relative detractors in the quarter were Tesla, Inc. (NASDAQ:TSLA) (not owned), Thermo Fisher Scientific, and Broadcom (not owned). We’ve spoken at length about our rationale for not owning Tesla. The stock enjoyed a 54% return during the quarter, with effectively all of the share price performance strength coming in the post-election period, as the market expressed a positive view on Elon Musk’s prominent role in the incoming Trump administration and its potential implications for Tesla. While we agree this development should be a net positive for Tesla and recognize the company’s interesting future prospects for autonomous driving and humanoid robots, its current valuation demands that shareholders pay primarily for potential innovations that have yet to materialize, with uncertain risks and timelines, presenting a different type of risk profile than we are comfortable with. Today, Tesla is an automobile manufacturer limited to the higher-income segment and is increasingly challenged to sell vehicles when interest rates are not zero. As such, we continue to question the company’s long-term growth profile, its ability to scale a large robotaxi service (which seems to be the source of euphoria in Tesla shares), and its corporate governance.”
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Discussing market volatility amid tariff-related uncertainties during a program on CNBC, Jim Cramer said that NVIDIA Corp (NASDAQ:NVDA) now trades like a meme stock.
“Trump’s change in attitude has terrified the moneymen — the big moneymen. Virtually overnight, they’ve decided that we’re headed for a recession, and it’s going to happen fast. The thesis is that we’re a consumer country, and they think the consumer is finished because of turmoil created by the Walmart White House. At the same time, the big themes of tech — the data center buildout and AI — seem suddenly cursed, victims of that Chinese outfit DeepSeek that has figured out a way to get more computing power from less hardware. Buyers of Nvidia’s expensive chips, see NVIDIA Corp (NASDAQ:NVDA) now trading like a meme stock. Can we just tell it like it is? It’s a meme — that’s why it’s getting crushed. Let’s not fool around — it’s a meme stock.”
RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA): NVDA was a top contributor in the fourth quarter following blowout 1Q results and guidance driven by strong data center sales (+427% year-over-year). The company reported revenue of $26 billion, up 262% year-over-year, and EPS of $6.12, up 462% year-over-year and 9% ahead of expectations. Revenue guidance for 2Q of $28 billion was 5% above very high expectations. The artificial intelligence arms race, kicked off by ChatGPT and Alphabet’s Bard, among others, has generated tremendous demand for Nvidia’s next generation graphic processors.
NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following recent results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “a trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”
While we acknowledge the potential of NVIDIA Corporation (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 time frame. 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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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at Jim Cramer on These 9 Stocks Recently and Jim Cramer Discusses These 10 Stocks & Says US Faces Unfairly High Tariffs Abroad.
