On Wednesday’s episode of Mad Money, host Jim Cramer shared his thoughts on the notion of whether the current surge in semiconductor stocks could be the modern-day equivalent of the energy boom of the 1980s.
“Is it possible that this red-hot semiconductor rally is only just getting started? This morning, Ben Reitzes of Melius Research… put out a piece that tries to relate the current remarkable move in the semis, they’re driving this whole market, to the incredible energy rally back in 1980. In those days, oil made up 30% of the S&P 500. Right now, the semis make up 12% of the S&P.”
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Cramer made a point to stress that there are significant differences between the two sectors. He explained that oil, at its core, is a commodity. He said that the dramatic rise in energy stocks during 1980 had more to do with macroeconomic forces than with the actual performance or innovation of the companies themselves. He explained that semiconductors, on the other hand, are deeply connected to broader economic cycles.
As per Cramer, although chips from U.S.-based companies are dominant globally, that alone does not justify semiconductors becoming an outsized portion of the S&P 500. He noted that currently, the entire tech sector makes up roughly 32% of the index. He went on to say:
“Of course, over time, tech can certainly become a larger percentage of the S&P, and the semis can keep moving up in value, but the comparison to the oil boom, that’s too much for me. Plus, it’s an ominous comparison because after 1980, we had a multi-year oil glut. If you just go back a few months, we saw what happens when the economy ticks down or when the president presses the tariff issue, the semis get crushed. So if you really feel the need to double down on the group, at least wait for the next big sell-off before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 25. We listed the stocks in ascending order of their hedge fund sentiment as of the first quarter of 2025, which was taken from Insider Monkey’s database of 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Stocks Jim Cramer Put Under the Microscope Recently
11. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 22
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the 11 stocks Jim Cramer put under the microscope recently. A caller asked what Cramer thought of the company, and this is what Cramer said in response:
“Listen, sunshine, that stock is up like 50 points… yeah, this stock is straight up from 20s to the 50s. What we have to do is tomorrow we gotta ring the register a little bit and say to ourselves, congratulations, and go buy yourself something fabulous, okay? Because you just hit it out of the park.”
AST SpaceMobile (NASDAQ:ASTS) develops the BlueBird satellite constellation to deliver space-based cellular broadband that connects directly to smartphones. The company’s service targets users beyond the reach of traditional ground-based networks, including commercial and government applications. On March 28, the company was mentioned by Cramer when he said:
“The biggest problem is that they’ve got a hideous balance sheet, and I don’t like hideous balance sheets. What has to happen is I think they should take on a partner. I do think that they’ve got a very interesting way to- look it’s a good telecom company partner, but what really matters to me is they’ve got to either start making money or get someone to give them some money. Right now, I think you’re too up in the air in this particular stock market.”
10. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is one of the 11 stocks Jim Cramer put under the microscope recently. A caller asked for Cramer’s thoughts on the company, and in response, he said:
“Okay, this is high-performance computing infrastructure, and high-performance computing is on fire. That company doesn’t make any money, but I think it’s a very good spec.”
Applied Digital (NASDAQ:APLD) develops and operates digital infrastructure. The company delivers cloud services and high-performance computing tailored to sectors including artificial intelligence, machine learning, and cryptocurrency mining. It is worth noting that in April, when Cramer was asked about the company, he said:
“I know the company, and it’s the kind of thing, we have so many of these digital infrastructure plays. I actually just prefer if you’re going to go there, just go buy Salesforce. I’m not kidding. Go buy CRM, I would feel better that way.”
