In this piece, we will look at the stocks that Jim Cramer discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed US personal consumption expenditure price index data. The PCE showed prices excluding food and energy jump by 0.4% in December while PCE inflation had jumped by 2.9% year-over-year. Additionally, data showed that the US GDP growth fell to 1.4% in the fourth quarter for dip influenced by a slowdown in government spending. The CNBC TV host described the data as a mystery:
“This stuff is such a mystery, in the same that you would have thought with the reshoring that we could have created more jobs. You would have thought that the trade deficit would have gone down. None of the numbers, what they seem. . .if you just look at these numbers, you would say, who in the Fed is saying, you know, we should tighten. Are they that much worried about that little bit PCE? I’m looking at an economy that definitely needs to go. Needs to go.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 20th, February 26th, and tweeted about. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holdings: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cybersecurity company. Its shares are down by 4,5% over the past year and by 16% year-to-date. Like other software companies, the firm has also suffered in today’s AI era. Particularly CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s stock dipped in February after AI software firm Anthropic announced that it would offer a new software tool which would enable users to scan code for security vulnerabilities and then rectify them. Cramer has been pointing out for quite some time that the growth in AI use will also lead to higher demand for cybersecurity services. On this front, CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s 2026 Global Threat Report released on February 24th revealed that “AI-enabled adversaries” had experienced an 89% jump over 2025 across areas such as “reconnaissance, credential theft, and evasion.” HSBC upgraded the shares to Buy from Hold and set a $446 share price target on February 13th. In a tweet on the 26th, Cramer remarked that CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares could not go up if computer hardware stocks were also performing well:
“Hardware down. software up. Crowdstrike higher. They can’t both go up…”
9. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holdings: 70
Agricultural, construction, and power generation machinery manufacturer Caterpillar Inc. (NYSE:CAT) has started to frequently appear on Jim Cramer’s radar. The firm’s shares are up by 117% over the past year and by 24% year-to-date. Cramer has been optimistic about the company for more than a year due to tailwinds from data center construction and power demand. More recently, he has started to explain that Caterpillar Inc. (NYSE:CAT)’s power generation equipment is in demand from hedge funds when it comes to building data centers in remote areas. The firm also confirmed the acquisition of RPMGlobal Holdings on February 17th to bring a mining software under its portfolio and bolster its equipment. Bank of America discussed Caterpillar Inc. (NYSE:CAT)’s shares in February as it raised the share price target to $825 from $735 and kept a Buy rating on the shares. BofA’s optimism was based on turbine demand and indications of no overcapacity in the market. Cramer also discussed power generation when he mentioned Caterpillar Inc. (NYSE:CAT):
“Caterpillar’s directive is to buy engines, that can produce two megawatts, thousand engines produce two megawatts in West Virginia. I mean look, you gotta focus on Caterpillar. That stock doesn’t double just. . .
“I have to tell you that I think that the resurrection of Caterpillar and the great secular growth story which started with Jim Umpleby and is now continuing with Joe Creed, is one of the more remarkable things. I want everyone to look at the Caterpillar chart and realize what could happen to a great American company if it puts it mind to it. That’s what happens. What a company.”
8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holdings: 264
AI GPU designer NVIDIA Corporation (NASDAQ:NVDA) reported its fiscal fourth quarter earnings report on February 25th. The results saw the firm post $68.13 billion in revenue and $1.62 in adjusted earnings per share to beat analyst estimates of $66.21 billion and $1.53. During the quarter, NVIDIA Corporation (NASDAQ:NVDA)’s data center business grew its revenue by a strong 75% while the total revenue for the quarter jumped by 73%. Additionally, the firm also guided $78 billion revenue for its fiscal first quarter which was higher than analyst estimates of $72.6 billion. Last week, a CNBC report claimed that NVIDIA Corporation (NASDAQ:NVDA) was considering to invest up to $30 billion in OpenAI. Morgan Stanley discussed the shares on February 23rd. It maintained an Overweight rating ahead of the earnings and commented that it expected the firm to post strong full-year results. In this appearance, Cramer countered beliefs that NVIDIA Corporation (NASDAQ:NVDA)’s deals were circular:
“Because if you take a look, NVIDIA’s been selling things that allegedly were circular. They’ve been selling things. Take a look at their most recent report of what they owned. They’re all floating some of the stuff that I heard was, woah, be careful.”
The CNBC TV host also commented on NVIDIA Corporation (NASDAQ:NVDA) through a tweet after the earnings:
“Traders can’t even be expected to read the Nvidia call. The key moment for me: the use of Claude Code, OpenAI codex and cursor that run on Nvidia. This is the explosion, not Amazon Web Services or Azure… Read the call. Read it with Gemini if you are confused. You will why you need to stay lon[g]”
7. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holdings: 62
Data center infrastructure provider CoreWeave, Inc. (NASDAQ:CRWV)’s shares are up by a strong 142% since late March last year. Year-to-date the stock is up by 22%. Investment bank Morgan Stanley discussed the firm on February 20th. It reiterated an Equal Weight rating and a $99 share price target. The commentary came ahead of CoreWeave, Inc. (NASDAQ:CRWV)’s fourth quarter earnings due on the 26th. Morgan Stanley remarked that the firm might have difficulty meeting ambitious growth targets. Morgan Stanley outlined that the firm would have to exit 2026 with more than 850 megawatts of power, resolving earlier delays with its data center projects, and a path to achieving 5 gigawatts of capacity. DA Davidson also recently discussed the shares as it kept a Buy rating and a $110 share price target as it remarked that CoreWeave, Inc. (NASDAQ:CRWV)’s agreement with NVIDIA provided the firms with a path to build their future infrastructure. Cramer also discussed the relationship between the firm and NVIDIA:
“Remember the only reason that deal at 40 worked in the IPO, was because of NVIDIA. They could just, boom. Hey don’t be surprised, now they would say, look I think CoreWeave’s going up much higher. . .
“NVIDIA could do a secondary right here, of what they own. A huge percentage of CoreWeave is owned by NVIDIA so NVIDIA could do a secondary right here and make a fortune. They could do it, and the reason I mentioned is because, a lot of times in the 1990s, 2000s, it was fanciful. . .”
6. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Holdings: 119
Customer relationship management software provider Salesforce Inc (NYSE:CRM)’s shares are down by 35% over the past year and by 22% year-to-date. Stifel cut the firm’s share price target to $200 from $260 and kept a Neutral rating on the 17th. One major debate in the market when it comes to Salesforce Inc (NYSE:CRM) has been about the firm’s ability to execute well in today’s AI market. Cramer has also chipped in and asserted that Agentforce continues to do well. Mizuho also discussed the firm in February. It maintained an Outperform rating but reduced the share price target to $280 from $340. Unsurprisingly, the firm pointed to the impact of AI on the software sector and remarked that worries about disruption from the technology was weighing down software stocks. Cramer commented on the broader sentiment:
“Now these are really great companies. These are great companies. If you had told me, two years ago, that we would even have any of that kind of chatter, I would say, do you understand that these are companies where a major bank might agree to a four year deal for ServiceNow. Well now the deals are two years, now we talk about Salesforce maybe not being able to do well in the seat business. I think that maybe one of the problems we have here is just that everyday we hear, it’s just not a big part of your overall, but everyday we hear that these companies aren’t getting the ARR in the out years that you think they are so therefore they are worth less. . .”
5. ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Holdings: 104
ServiceNow Inc (NYSE:NOW) is an enterprise workflow management software provider. The shares are down by 43% over the past year and by 27% year-to-date. Needham discussed the firm on February 9th as it kept a Buy rating and a $155 share price target. It commented that ServiceNow Inc (NYSE:NOW)’s Pro Plus modules were exhibiting healthy growth and added that operating metrics such as the Now Assist annual contract value were demonstrating robustness. Specifically, Needham outlined that the annual contract value for the platform had crossed $600 million and attributed it to the demand for AI-driven products. Wedbush added ServiceNow Inc (NYSE:NOW) to its IVES AI 30 list in February and remarked that the recent software stock selloff was due to the market overestimating the risks of AI on software companies. One aspect of software firms that Cramer has frequently discussed when it comes to AI is the seat-based model. He elaborated on this as he commented on ServiceNow Inc (NYSE:NOW):
“Now these are really great companies. These are great companies. If you had told me, two years ago, that we would even have any of that kind of chatter, I would say, do you understand that these are companies where a major bank might agree to a four year deal for ServiceNow. Well now the deals are two years, now we talk about Salesforce maybe not being able to do well in the seat business. I think that maybe one of the problems we have here is just that everyday we hear, it’s just not a big part of your overall, but everyday we hear that these companies aren’t getting the ARR in the out years that you think they are so therefore they are worth less. . .”
4. Workday Incorporated (NASDAQ:WDAY)
Number of Hedge Fund Holdings: 64
Financial management and planning software provider Workday Incorporated (NASDAQ:WDAY)’s shares are down by 48% over the past year and by 35% year-to-date. Baird discussed the firm on February 25th as it cut the share price target to $190 from $195 and kept an Outperform rating. The coverage followed after Workday Incorporated (NASDAQ:WDAY)’s fourth quarter results, and in the period, the firm brought in $2.53 billion in revenue and $2.47 in adjusted earnings and beat analyst estimates. However, Workday Incorporated (NASDAQ:WDAY)’s fiscal first quarter guidance of $2.335 billion in subscription revenue and 30.5% in adjusted operating margin fell short of analyst estimates. Earlier in the month, BTIG also commented on the software company as it reduced the share price target to $230 from $285 and maintained a Buy rating. The financial firm outlined that Workday Incorporated (NASDAQ:WDAY)’s AI strategy required hefty investments. Cramer discussed the firm’s management:
“No, but I will say this. You know, the executive who is back running Workday. . .is a pro. And I think that people will take his call and they’ll take his stuff. And he does matter, management does matter, you need seasoned managers.”
3. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holdings: 41
The J. M. Smucker Company (NYSE:SJM) is one of the largest food companies in the world. Its shares are up by 6% over the past year and by 20% year-to-date. Banking giant JPMorgan discussed the firm on February 23rd. It raised The J. M. Smucker Company (NYSE:SJM)’s share price target to $122 from $121 and kept an Overweight rating on the shares. Following the snack company’s CAGNY presentation, TD Cowen raised the target price to $112 from $105 and kept a Hold rating as it remarked that The J. M. Smucker Company (NYSE:SJM)’s fiscal 2026 commentary was cautious. Smucker’s earnings report, released on the 26th, saw the firm post $2.34 billion in revenue and $2.38 in adjusted earnings per share. The results beat analyst estimates of $2.33 billion and $2.26. In his previous remarks about food companies, Cramer has pointed toward the impact of weight loss drugs on their sales. In this appearance, he mentioned activist Elliott Management’s role when it came to The J. M. Smucker Company (NYSE:SJM):
“Hey how about Smucker, you know with the GLP-1s, thought they were finished, Mr. Uncrustable Faber. And it turns out, no, and you know what’s helped them, a couple of Elliott board members. Elliott.”
2. Imax Corporation (NYSE:IMAX)
Number of Hedge Fund Holdings: 25
Imax Corporation (NYSE:IMAX) is an entertainment technology and theater services provider. Its shares are up by 65% over the pat year and by 15% year-to-date. JPMorgan discussed the firm on February 26th as it raised the share price target to $48 from $47 and kept an Overweight rating on the shares. On the same day, Benchmark also raised the share price target, according to The Fly. It raised the target to $44 from $42 and kept a Buy rating on the shares. The financial firm discussed Imax Corporation (NYSE:IMAX)’s earnings as it remarked that the firm had gained market share and its international presence. The entertainment company’s fourth quarter saw it bring in $125 million in revenue to mark a 35% annual growth while its full year revenue sat at $410 million to mark a 16% annual jump. Cramer discussed his experience while watching movies at Imax Corporation (NYSE:IMAX)’s theaters:
“I think that the proof in this is that, it’s fun to watch something in your living room. You have a big 90 inch screen. The only thing that’s more fun is Imax. And I really believe that. I go to Imax now, I order a hamburger, I have a beer, maybe a shot of tequila, and I watch a movie and it’s kind of like better than at home, where my wife doesn’t make the hamburger. Neither do I.”
1. Victory Capital Holdings, Inc. (NASDAQ:VCTR)
Number of Hedge Fund Holdings: 22
Victory Capital Holdings, Inc. (NASDAQ:VCTR) is an American asset management company. The firm was in the news yesterday after it made a fully financed offer to acquire Janus Henderson for $30/share in cash and the remainder in stock. On the 26th, Victory Capital Holdings, Inc. (NASDAQ:VCTR) announced that it had sent another letter to Janus for “a fully financed, actionable proposal to acquire” the financial company. The firm explained that the deal could generate as much as $500 million in synergies primarily through efficiencies in the back and middle offices. According to Victory Capital Holdings, Inc. (NASDAQ:VCTR), following the deal, Janus shareholders would own 38% of the new entity. Cramer commented that he thought the deal was a good bargain:
“Well I’ve got to tell you, I felt that the, when I first heard it, I said that jeez, that’s a great bargain. That’s a terrific, because I think it’s a great, I’m a big believer in that the individual is coming back, and they’re trying to figure out where to go back. And they’ve got some well managed funds and I think people are going to want to be a little more aggressive than the S&P. And it’s a great asset, great asset.”
Merion Road Capital Management discussed Victory Capital Holdings, Inc. (NASDAQ:VCTR) in its third quarter 2025 investor letter:
“During the quarter I re-established a position in Victory Capital Holdings, Inc. (NASDAQ:VCTR). VCTR has closed their acquisition of the Amundi US business and now boasts over $300bn in assets under management. Net flows for the acquired business were positive in 2024 and for 2025 YTD. On a consolidated basis, there is upside to flows should VCTR be able to realize the immense cross-selling opportunity at hand. As a reminder Amundi globally manages over $2 trillion in assets, has a 15-year distribution agreement with VCTR, and economic exposure to VCTR with ownership of 23mm equivalent shares (worth about $1.5bn). Management increased their cost synergy target to $110mm and have historically exceeded their guidance. I believe that the company can achieve at least $7.00 / share next year in free cash flow, putting them at about 9x. This level is at a discount to comparable asset managers and does not give the company credit for operational upside and strong capital allocation.”
While we acknowledge the potential of VCTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VCTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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