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.”
9. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q1 2025: 328
Amazon.com, Inc. (NASDAQ:AMZN), the world’s largest eCommerce retailer, is a regular feature of Cramer’s morning show. The CNBC TV host believes that the firm is not raising prices, and he is optimistic about its Alexa Plus AI service. Cramer made the following remarks about Amazon.com, Inc. (NASDAQ:AMZN) ahead of the firm’s earnings release:
“Brian Olsavsky, the CFO, he’ll give you a good read, but I remember a fight I had with him a couple of years ago where they were going for 12 down to 10. So it’s starting to go in the right direction, the numbers are so huge. Is there share take or is there just more to the cloud? If there’s more to the cloud then I think that Amazon will be fine.
“Earlier you mentioned the pressure on Amazon. Amazon opened at 235, and has since come back to 232. As a note of realism comes on that they better deliver 18 to 19 on Azure [later clarified that he meant AWS]. I think they’re fine with 17.
“. . .but one of the things that I’m betting Amazon will do is have a fantastic ad number like the Meta number.”
Cramer then proceeded to discuss Amazon.com, Inc. (NASDAQ:AMZN) after its earnings. Here is what he said on Mad Money:
“After the close, we drifted from lunacy back to reality. Amazon reported what I thought was a good quarter… Much better than expected sales at every division, even if the web services margin was like, oh, give me a break. Unfortunately, Amazon gave mixed guidance, but they always do that. That’s what they do. It’s my largest position in the Charitable Trust. I’m not worried about it at all. I am worried about, what do you think? What I’m worried about Figma’s law and Amazon stock got hit. But you know, please, I mean, it’s getting crushed in after hours. It’s just going to be another buy.”
8. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders In Q1 2025: 73
CVS Health Corporation (NYSE:CVS) is one of the largest pharmaceutical retailers in America. The firm’s shares have gained 39% year-to-date, driven primarily by troubles at its rival Walgreens. CVS Health Corporation (NYSE:CVS) reported a strong set of earnings in July when its Q2 and full-year profit-per-share guidance beat analyst estimates. Here’s what Cramer said about CVS Health Corporation (NYSE:CVS) after the earnings:
“Right, and remember, Walgreens shrinkings, Rite-Aid gone away, 185 million people now go to these, including 60 million people who use two or more of their offerings. David, I’ve got to tell you, they are, if you remember, the one that was the worst, they’re now the first. David Joiner, congratulations, you know how to price your business. And, they’re getting out of the individual exchange plans in 2026. Goodbye Medicaid?
“Guidance goes, six, six twenty, from five seventy five, six dollars, there’s a stock that going to . . .one hundred dollars!”
The CNBC TV host commented previously on CVS Health Corporation (NYSE:CVS) in the context of its position in the weight loss drug market:
“[If market should start thinking about sectoral tariffs after Trump’s latest remarks]I mean when I heard it first I said okay, so they put a tariff on Novo Nordisk. It’s really good for Eli Lilly. Now that’s not necessarily what we’re talking about but remember this price differential right now. . CVS, Eli Lilly versus Novo. So for Wegovy versus Zepbound.”
7. Figma, Inc. (NYSE:FIG)
Number of Hedge Fund Holders In Q1 2025: N/A
Figma, Inc. (NYSE:FIG), the latest IPO to hit the market, went public on the day this show was aired. Its stock jumped by a whopping 250% on the day that the shares started to trade on the market. However, since the peak post-IPO close, Figma, Inc. (NYSE:FIG)’s shares have dipped by 35%. In this context, Cramer’s words as the shares started to trade are quite important:
“It is expensive at 33 versus where Adobe tried to buy it.
“[On how they’ve got a lot of selling shareholders] Right, and I think that in itself is usually a red flag. They expect to bring 360 million from the deal but roughly two-thirds are going to existing shareholders. Which I find is a really large cash out.
“Netflix uses it, Duolingo uses it, Uber uses it, JetBlu, 95% of the Fortune 500 use it. And, if you have a subscription to Adobe it’s much more expensive than Figma. Figna’s a very good buy. This is Figma versus Adobe just so everyone knows.
“And I urge people to, if you put in market orders, it’s gonna be like two thousands, you will be crushed. Please put in a limit order. Don’t worry if you don’t get it. This is one where I want people to exercise caution.
The CNBC TV host proceeded to discuss Figma, Inc. (NYSE:FIG) later during the day in Mad Money. Here is what he said:
“Somehow, Figma captured the zeitgeist of the entire joint, no, the entire market… And do you know why that happened? Was it the Fed? Was it the president? Was it earnings? No, it happened because of Figma. This market went down because of Figma. Why? Because valuation matters. What matters to this market is to be reasonable, and we weren’t today. Today was dominated by euphoria. And guess what? Euphoria is bad for business…
Now, I’m not disparaging Figma here. This is not some profitless company. It makes money, it grows fast, consistently. I like the product, used by everybody… But there’s a problem here, problem with Figma stock. The price made no sense whatsoever. It’s wildly inflated because it doesn’t make that much money. In fact, it makes so little that I can’t even use a price-to-earnings multiple that I used for Microsoft and Meta.
Valuation is irrelevant when we talk about Figma, irrelevant. How do we value it then? There’s really only one way. You have to judge it on a price-to-sales basis… The Figma deal mattered even more than the two giants because it’s the worst possible sign of froth. I hate it… What goes up must come down, okay?”
6. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders In Q1 2025: 23
Oklo Inc. (NYSE:OKLO) is a nuclear power company that makes and sells nuclear power plants. Despite the fact that its shares have gained a whopping 249% year-to-date, Cramer isn’t a fan of the stock. Unlike Oklo Inc. (NYSE:OKLO, the CNBC TV host’s only and top nuclear power play is GE Vernova. In his previous comments about the firm, Cramer has remarked that retail investors buying the stock do not invest in it because of the fundamentals. Here are his recent thoughts about Oklo Inc. (NYSE:OKLO):
“I know that people can’t resist an Oklo. I mean Oklo has a deal with Vertiv, I get it. In the data center. And you can own some speculation. But remember, these are companies that, may or may not make it. Own one of them, own two of them, but don’t own ten of them.”
Later during the day, here’s what Cramer said about Oklo Inc. (NYSE:OKLO) on Mad Money:
“Until this market, I found it very hard to recommend anything… because historically, parabolic moves tend to explode in your face. But you know what? I violated my rule for this market simply because the moves are too big and the opportunities too frequent to pass on all of them. I don’t want you to miss making some big money because of a view that might no longer be relevant. Let’s take some stocks.
Take Oklo, okay. You might have seen them on TV today. Here’s a company that I’m asked about every couple of weeks, one that’s working on new nuclear technology. I felt that the stock’s parabolic run from $21 to $31 was just too steep for me, even as I’m a huge believer in nuclear. Finally, I switched my view and told people to buy it regardless of the parabola because it has just so much going for it. Today, Oklo announced an integrated power solution for data centers, might be worth billions to shareholders. It’s a turnkey solution no one else has. The stock has now doubled since I waived my parabola ban, doubled.”
5. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders In Q1 2025: 77
The Goldman Sachs Group, Inc. (NYSE:GS)’s shares have gained 25% year-to-date due to greater deal-making activity and IPOs. One recent catalyst for the stock was the bank’s earnings report, which saw its equities revenue of $4.3 billion beat analyst estimates of $3.6 billion and its investment banking fees jump by 26% annually to touch $2.19 billion and surpass analyst estimates of a 10% growth. Despite the relatively strong share price performance, Cramer believes The Goldman Sachs Group, Inc. (NYSE:GS) has further room to grow:
“Goldman, Goldman and Morgan. I think that Goldman stock has been elevated because of things I guess. Now see, Goldman’s only at [inaudible] it’s got a parabolic move. But it sells at 16 times earnings. That is a candidate to be revalued up to 18, 19 times earnings.”
Here’s what he said about The Goldman Sachs Group, Inc. (NYSE:GS) after its earnings:
“The single best report of the big banks came from Goldman Sachs, another Charitable Trust holding… really bailed me out on this one… They changed the… CEO of this today… Goldman blew away the numbers. I think they may have had the best quarter ever…
Big story though, right now, is the return of M&A as M&A advisory revenue grew a staggering 71% year over year, 48% just versus the previous quarter… In the end, the stock rallied more than six bucks today. I think it’s going to be up much, much more. You know why? Because it is just the cheapest when it comes to EPS…
…The craziest thing is that Goldman, a fabulous firm, trades at a big discount to the average stock in the S&P 500 because its earnings used to be so episodic… This quarter showed how the company’s become much more of a well-oiled machine where you’re going to get a number that doesn’t swing wildly good, bad, or indifferent. I think this is the beginning of when the stock gets reevaluated upward and the multiple has a giant upward revision, and that’s going to propel the stock much higher….
When I saw Goldman down six, I said if someone wanted to buy a hundred shares, buy 25 now, buy 25 a little bit lower, and then buy 50. That’s called pyramid style buying, gradually getting… bigger as it goes down… When a stock starts to go lower, it will often keep going lower until all the people who don’t know anything are done selling, and you get a terrific price from their ignorance. We saw that with Goldman today, as the stock eventually rebounded and finished the session up more than six bucks. This was their best trading quarter in history, and it’s a great trading firm, very strong wealth management, beginning of a turn in M&A and IPOs. That’s really all you can ask for from Goldman, and it’s the stuff that’s going to make the stock a much higher multiple stock, and I like that.”
4. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders In Q1 2025: 90
Carvana Co. (NYSE:CVNA) is an online car retailer, which is one of the hottest stocks in its sector. Its shares have gained 78% year-to-date. The shares jumped by a strong 17% in July after the firm revealed that it sold 143,280 cars in its second quarter to mark a 41% annual growth. The strong sales also pushed Carvana Co. (NYSE:CVNA)’s revenue to a record $4.84 billion for a stunning 40% annual growth. Safe to say, Cramer is a fan of Carvana Co. (NYSE:CVNA):
“And then there are other companies that are just doing things with their business model that are extraordinary. For instance, I have Carvana on tonight. . .That’s the company you’d buy the car and they’d give you a guarantee, they’re very inexpensive to buy.
“Ernie’s a champion, I reccomended that stock in the single digits.”
Here is what he said about Carvana Co. (NYSE:CVNA) later during the day on Mad Money:
“Look at the stock of the Carvana run. Now, I’ve been recommending this digital used car retailer for over two years now, and it just keeps winning. In fact, the stock’s now more than doubled, at least from its post-Liberation Day low in April, and it never should have sold off like that because, in the first place, President Trump’s tariffs on imported autos make used cars a lot more valuable. Sure enough, last night Carvana reported a magnificent top and bottom line beat, tremendous guidance for the current quarter, which is why the stock shot up another 17%.”
3. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders In Q1 2025: 76
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of Cramer’s top stocks. The firm’s shares have gained 165% year-to-date and are one of the best-performing on the market. Robinhood Markets, Inc. (NASDAQ:HOOD) has done well because of its early mover advantage in the retail trading segment of the stock market. This advantage has allowed the firm to eke away market share from traditional players such as Charles Schwab. However, in a classic case of high expectations, Robinhood Markets, Inc. (NASDAQ:HOOD)’s shares dipped by 5.8% in July after the firm’s second-quarter earnings release, which saw management hint at higher costs stemming from a recent acquisition. Here is what Cramer said about Robinhood Markets, Inc. (NASDAQ:HOOD):
“Now, what do you think about something like a Robinhood? Where it just turned out to be too high, it went into the quarter, the numbers were extraordinary, they’ve got millions of people using. . .and it wasn’t enough.”
Here are Cramer’s previous remarks about Robinhood Markets, Inc. (NASDAQ:HOOD):
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders In Q1 2025: 39
Ford Motor Company (NYSE:F) has seen somewhat of a turnaround in its fate in 2025 due to tariffs. The shares have gained 14.3% year-to-date to significantly outpace the 2.4% gains made by rival and peer General Motors. Ford Motor Company (NYSE:F) has benefited from the fact that its supply chain is not as significantly dependent on Mexico as is GM’s. Cramer commented on Ford Motor Company (NYSE:F)’s warning that it faced a $2 billion hit from tariffs:
“Some stocks have run right into the quarter and people don’t want them. Then there are other companies that I just feel badly about. For instance, when I feel badly I mean Ford Motor. Ford Motor, down today. But is hit by tariff. Maybe two billion in tariffs. Ford is odd. You have the most American of the big, of the big automakers, and they’re the one that’s being hurt most by the tariffs. They need to consult some of the people, Lutnick, perhaps Navarro. Because I don’t think they’re meant to be the loser. I really don’t.”
Here are his previous comments about Ford Motor Company (NYSE:F):
“They’re gonna have a lot more that I think can go their way. Uh, when I was speaking to Cleveland Cliffs yesterday, to Lorenzo Goncalves. . I mean he’s just talking about this is the beginning of a lot of different things. Very in flux. GM has, Ford has told me GM has much, much exposure. Versus Ford. So I’m looking for Ford to have a good quarter. By the way, Ford’s going for 10, Ford’s making a 20% move here. So I look to see who has the most exposure. And I’ve got to tell you, Ford was right when it said be careful, GM. Because everyone in the industry knows that there’s a lot of companies ship a lot of stuff. Get to Allison Motor, down there in Mexico, it comes back. GM, David, it’s like back and forth with the car. . .that is not what they want.”
1. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders In Q1 2025: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the largest semiconductor companies in the world. The firm designs and sells CPUs, GPUs, and other chips that are used in smartphones, tablets, and other gadgets. QUALCOMM Incorporated (NASDAQ:QCOM)’s shares have lost 4.3% year-to-date, primarily on the back of a 9.5% dip in July. The stock fell after the firm warned investors that it could see lower revenue from Apple as the latter shifts to custom modems for the iPhone. Here is what Cramer said about QUALCOMM Incorporated (NASDAQ:QCOM) after the earnings:
“[On how there was nothing exciting for the company] No, because of the cellphone and then losing, you know, the Apple business. Apple of course reports tonight. The Apple business is, going from great to not great.
“It’s fine and I don’t want to cast aspersion on Cristiano Amon but I mean, that, there’s someone who does have little a more prideful attitude. And that rankles me a bit but that’s okay.”
Here are Cramer’s previous comments about QUALCOMM Incorporated (NASDAQ:QCOM):
“It’s the AI-related chips that are on fire today. . .Qualcomm. . .moving up again. . .Let’s again speak of the stock market rather than Sweden’s gonna do, what’s happening in Sweden. The stock market is reacting incredibly positively to stuff and there are people who don’t want to react to it or think that somehow those points aren’t valuable. I think they’re crazy. We’re having a good rally.”
While we acknowledge the potential of QCOM 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 QCOM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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