In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer revealed what it would take to be successful in today’s AI-driven world. Cramer believes that while AI chatbots do produce inaccurate information sometimes, the key to thriving in the AI era is knowing how to ask the models proper questions. According to Cramer:
“I will say that after listening to all these companies, those who know how to prompt, are those who are going to win. Now maybe superintelligence would help me learn how to prompt but, if you, like let’s say you go in this morning, like I went, to Confluent. Which is down big. What’s the problem with Confluent? They all give me different answers. And that’s because I said, what’s the problem with Confluent. Right, and that’s the newbie way to do it. Those who know how to prompt are king.”
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 July 31st.
For these stocks, we also 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).
11. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders In Q1 2025: 284
Jim Cramer discussed Microsoft Corporation (NASDAQ:MSFT) after the firm’s latest earnings report, which saw it cross the $4 trillion market valuation after beating analyst estimates for Azure growth. Here is what Cramer said:
“Yeah, I think that, people, it’s hard for people to understand as you follow this in a granular fashion, that just a few quarters ago we were thinking that this business was going to decelerate. Decelerate meant that you didn’t have a great company. You had a company that theoretically could be well behind Amazon Web Services. You start thinking about whether it’s at a Google Cloud level. Now it’s been a dramatic acceleration. These guys are competitive. And they don’t necessarily give the air of competition, but this is just a gut check on everybody else because this is so extraordinary.
“But this acceleration of a company so old, is just incredible. And you know, Amy Hood, who’s the CFO, is going over it, she’s an amazing CFO. But she approaches things, as she approaches the life. In a very matter of fact way. And by life I mean if you get her off the desk, she’ll just, look, we’re doing 37, people thought we were doing 32. And you’ll say, are you kidding? I mean that’s amazing. And she’ll say, no actually the team’s working hard. It is just done in such a, let’s say a carefree way that they sound like, well you know what we accelerated a little. There’s no pride, there’s total humility. It’s a remarkable company.
“One of the things that I think there’s a key, I know I’m gonna say something that I think it just shocked me. ‘Cloud demand is outpacing supply.’ So in other words, they’re spending fortunes. And everyone says, they’re spending too much. And that was the bear narrative. But they’re not spending enough. And there was a question in the call about whether they, how much they’re spending, and every dollar seems to be producing a tremendous amount of revenue. That’s very unheard of. The leverage of this company is extraordinary. Now if I were Jensen Huang, I’m not as worried about H20 today as I am thinking, well I better start producing more for these guys.
“I need people to understand that these companies are incredible. They’re American. They’re not celebrated enough. They’re making people big money. And we talk about the Fed? And the renovations?”
10. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders In Q1 2025: 273
Meta Platforms, Inc. (NASDAQ:META), like Microsoft, also reported strong earnings in July. The results saw the firm beat analyst revenue forecast estimates and raise the bottom end of its capital expenditure guidance. Here is what Cramer said about Meta Platforms, Inc. (NASDAQ:META) after the earnings:
“Meta makes no sense whatsoever. That’s way too cheap. Way too cheap, six, seven turns in multiple.
“Okay. Let’s say you and I started a, I don’t know, institutional investor at the same time. If I could have, the Meta superintelligence of me, I’d crush you. The race to be able to each have Meta superintelligence, to be more than you are, will be extraordinary. If anyone in your class has superintelligence, you better get some superintelligence.
“Well he [Zuckerberg] did say near the end of his, the question and answer, that that is the best way to be able to get AI. It’s the glasses. Now I’ve used the glasses. They’re very exciting. Like you can look at something and say tell me what it is. You can go birding, you can go trees, you know if you’re like peaceful and serene, which is not me, I didn’t care at all about that. But I did find that what was exciting about this. . .there’s something that he did not emphasize, which I wish that he had, a small business looks like a big business with them. You write him a check and they come back with something that makes it so you have incredible sales. He has become the best friend of the small business person. And he does that in a very quiet way. Again, these people are so not showmen. They’re just not showmen, showmen and women. I loved the quarter.
“[On Moffett revising revenue growth estimates and what could be an appropriate multiple] Well look I mean, you can look at Bank of America says it should be 900. JPMorgan says 850. Morgan Stanley uses a target of 850. These are all substantially away from where it is. And I would think it has to take out those targets. So I’m gonna say, why don’t give it a 30 multiple on 20, I don’t know on 28[sic] [inaudible] dollars.
“By the way, Susan Li, why does no one talk about her? The CFO. Extraordinary. Puts everything in perspective. Again, in a calm way. That makes you feel like, ehh, it’s a ho-hum quarter. These people are, again, the humility of these companies is very impressive.
“You know I’m on all these sites. Meta AI, I’ve stopped including that into my pastiche, not mosaic of guys I use.”
