Jim Cramer in a latest program on CNBC talked about the latest signs of de-escalation in trade wars between the US and China and told investors that even bear market rallies could be a positive sign. Cramer, however, believes the US government has yet to give any clarity on its policies on China.
“There’s a great misunderstanding about how real recoveries get started. They always start as bear market rallies, for heaven’s sake. They’re rarely based on hard facts. When you get this kind of rally, it doesn’t happen because someone gave you the green light to start buying. You don’t get a statement from the president that the trade war is over and everything’s back to normal.”
In addition to positive reports on the US-China tariff front, Cramer also mentioned the latest reports on President Trump’s stance on Fed Chair Jerome Powell, saying that the possibility of Trump firing the central bank chief seems to be “off the table.”
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 latest programs on CNBC. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. AMC Entertainment Holdings Inc (NYSE:AMC)
Number of Hedge Fund Investors: 16
Jim Cramer in a latest program on CNBC recommended investors to stay away from AMC Entertainment Holdings Inc (NYSE:AMC):
“The answer is that they should have reorganized by now and they haven’t. They have way too much debt. I want you to stay away from that one.”
9. On Holding AG (NYSE:ONON)
Number of Hedge Fund Investors: 35
Jim Cramer was recently asked about On Holding AG (NYSE:ONON). He recommended investors wait for a pullback to buy the stock amid tariffs.
“We have liked On Holdings for some time. We actually started liking it in the 30s. We’ve had— we’ve been following the company multiple times. It is a high-multiple stock, same multiple around as Chipotle. I want you to buy the stock, yes, but I want you to let it come in first, because the market’s going to be looking a little peaked—off of these, frankly, off of the very high tariffs that many people weren’t expecting. But if you watch our show, you know they were coming.”
American Century Investments International Growth Fund stated the following regarding On Holding AG (NYSE:ONON) in its Q3 2024 investor letter:
“On Holding AG (NYSE:ONON). The stock performed well, helped by the introduction of new products and a positive price mix. The company has outperformed larger and more mature brands in its peer group like NIKE and Adidas. Demand remained strong across all regions, including Asia as the Chinese market improved.”
8. Enphase Energy Inc (NASDAQ:ENPH)
Number of Hedge Fund Investors: 38
Jim Cramer in a latest program recommended investors to avoid Enphase Energy Inc (NASDAQ:ENPH) because of the policies of President Donald Trump.
“Sell out and buy Capital One, or hang on for any good news in Enphase? No—sell out and buy Capital One. There will be no good news in Enphase, because you know why? It’s not a company that the president wants to see do well. It means nothing to him. Nothing.”
7. American Express Co (NYSE:AXP)
Number of Hedge Fund Investors: 62
A caller recently asked Jim Cramer whether she should hold and buy more American Express Co (NYSE:AXP). Here is what Cramer said:
“You do because Stephen Squeri (AXP CEO) is incredible. I think it’s one of the great franchises of all time, and I’ve studied its 150 years. I think these guys—this is one of America’s great companies.”
GreensKeeper Asset Management stated the following regarding American Express Company (NYSE:AXP) in its Q1 2025 investor letter:
“Our second largest contractor in the quarter was American Express Company (NYSE:AXP). AXP finished 2024 on a strong note, with earnings growing 23% for the year. While provisions for credit losses increased, reflecting a more cautious credit outlook, net write-off rates remained below historical averages, indicating strength in the underlying credit quality. AXP remains well-capitalized, and its affluent customer base is expected to fare better than the general economy in the coming months. However, the stock was not cheap, and we trimmed our position in Q1.”
6. TJX Companies Inc (NYSE:TJX)
Number of Hedge Fund Investors: 63
Talking about winners and losers in the latest tariff wars, Jim Cramer said that TJX Companies Inc (NYSE:TJX) will benefit from tariffs. Here is how he explained his case for the off-price retailer:
“TJX is the principal beneficiary because everyone’s going to take in a lot of inventory because they’re trying to get it in fast and then they won’t be able to sell everything. So then they give it to TJX. That is what I call a winner.”
ClearBridge Growth Strategy stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q1 2025 investor letter:
“Two newer positions also held up well: uniform and workplace products provider, Cintas, and off-price apparel retailer, The TJX Companies, Inc. (NYSE:TJX). TJX also put up a high-quality beat and has become a relative safe haven for investors amid elevated recession fears. The company has historically benefited from trade-down and inventory availability during periods of weaker consumer spending.”
5. Bristol-Myers Squibb Co (NYSE:BMY)
Number of Hedge Fund Investors: 70
Jim Cramer in a latest program on CNBC said that he likes Bristol-Myers Squibb Co (NYSE:BMY) more than Merck because of the company’s schizophrenia drug:
“I’m going to say something that could get me in trouble, but I, I like the market at this level. I really do. But I’ve got to tell you, and Michael, you know I play it straight, I like Bristol Myers a lot more—BMY. I like it a lot more because the schizophrenia drug is on the come.”
4. Costco Wholesale Corp (NASDAQ:COST)
Number of Hedge Fund Investors: 75
Jim Cramer in a latest program on CNBC explained why Costco Wholesale Corp (NASDAQ:COST) will benefit from tariffs.
“Costco huge winner. Why? Because they have a club. The club status is to pass on anything. And then they still have the, and it’s still going to be cheaper. So we cannot lump all these together. We lump them initially. Costco is going to be down as much as Target, but then we have to come back and say maybe Target should stay down, but Costco should go up. So there’s like a secondary look at things.”
Aoris Investment Management stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2024 investor letter:
“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!
We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”
3. Alphabet Inc (NASDAQ:GOOG)
Number of Hedge Fund Investors: 160
Jim Cramer in a latest program reiterated his concerns about Alphabet Inc (NASDAQ:GOOG) and said that he’s not using Google anymore because of other AI search tools:
“I’ve left Google. Now, I didn’t leave it at the right price, I know that, but I left it because I don’t use Google other than for the most simple historical stuff, because there are other ones that I wouldn’t go to. I won’t go to Grok to find out whether Hoover was president. I’ll still use Google for that, but I just find myself using so many other things, and I know I can’t be alone, and that’s what I worry about. I know YouTube’s doing well, though.”
Alphabet posted strong quarterly results but the market remains reluctant about the stock amid threats to its search business due to the onslaught of AI tools like ChatGPT. However, GOOG bulls believe these concerns are overstated.
Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. Google has over 1.5 billion monthly users interacting with its AI-powered Search overviews. OpenAI, Alphabet’s biggest competitor now when it comes to AI search, has less than 5% of its users paying, and its business model is still developing. Google’s first-quarter results showed continued strength in its cloud unit, with revenue up 28% year over year and solid operating income growth. This supports Google’s broader AI strategy and underscores the scale advantages of its cloud business.
Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) also detracted from performance during the quarter, despite of +13% growth in its core search business and over +20% growth in segment income for Google Services. The Company’s search results are beginning to beneit from the addition of “GenAI” (generative arti icial intelligence) responses being added, which monetize at a nearly similar rate as traditional search results do. Alphabet’s Google subsidiary serves billions of users per day, so it is no mean feat to be able to offer GenAI to users free of charge. Google has long been at the forefront of AI hardware and software R&D, irst rolling out its Tensor Processing Units (TPU) to run machine-learning operations across massive datasets almost a decade ago. The Company should be able to continue to drive growth thanks to these large long-term investments in AI and other technical software and infrastructure.”
2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Jim Cramer said in a latest program on CNBC that while he still believes in the long-term prospects of NVIDIA Corp (NASDAQ:NVDA), he thinks the stock is not done going down.
“I see the stock coming down from here. I’ve been saying that it’s become a whipping boy. I’ve been saying that it will only get worse with tonight’s tariffs. Believe me, it’s okay to believe in the stock, but understand that right now it’s not right. Down here, less than 25 times this year’s earnings estimates, though, I think Nvidia is cheap. But I don’t think it’s done going down because the bears can stories about it. And as long as it goes down after the bears plant stories, that means the stock is in the wrong hands.”
Cramer is right. The market will keep punishing Nvidia for not coming up to its gigantic (and sometimes unrealistic) growth expectations. About 50% of the company’s revenue comes from large cloud providers, which are rethinking their plans amid the DeepSeek launch and looking for low-cost chips. Nvidia’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. Its adjusted margin is expected to be down substantially as well to 71%. The market does not like it when Nvidia fails to post a strong quarterly beat. The stock will remain under pressure in the coming quarters when the company will report unimpressive growth.
Nvidia is facing challenges at several levels. Competition is one of them. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC’s 3nm capacity, which could limit Nvidia’s access to these chips. Why? Because Nvidia also uses TSMC’s 3nm process nodes. Nvidia is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offers alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia’s offerings. Apple is reportedly working with Broadcom to develop an AI server processor. Intel is also trying hard to get back into the game with Jaguar Shores GPU, set to be produced on its 18A or 14A node.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Jim Cramer in a latest program on CNBC said that only the “strongest” and the “biggest” companies can survive in the latest down market trends and named Amazon.com Inc (NASDAQ:AMZN) as a name to own:
“Here’s my thinking: I think that the ones who can survive are the strongest and the biggest, and that’s what it’s coming to. This is Amazon, it’s from 242 down to 192. What can I say other than (buy, buy, buy).”
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company renowned for its expansive e-commerce platform, offering a vast array of products and services to consumers worldwide. Beyond online retail, Amazon generates revenue through its cloud computing division, Amazon Web Services (AWS), which provides scalable computing solutions to businesses and governments; subscription services like Amazon Prime, offering members benefits such as streaming content and expedited shipping; and advertising services that enable brands to reach targeted audiences on its platform. During the quarter, shares detracted from performance due to concerns surrounding U.S. President Donald Trump’s impending tariffs on imported goods, raising fears about increased operational costs and weaker consumer spending. Additionally, management’s lower-than expected fiscal first-quarter sales forecast and substantial planned investments—including a $100 billion commitment to AWS and AI infrastructure in 2025—further pressured sentiment regarding near term profitability. Despite the near-term share price weakness, we believe Amazon’s fundamentals remain strong given its diversified business model, continuous innovation, and dominant positions in high-growth areas like e-commerce and cloud computing.”
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this 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 the 9 Stocks on Jim Cramer’s Radar and the Jim Cramer Reveals Where Investors Fled During Tariff Selloff & Discusses 10 Stocks.
