In this piece, we will look at the stocks Jim Cramer discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed President Trump, the corporate buying of houses, and Trump’s attempts to lower housing prices:
“We have a dynamic system where I think the President is truly trying to lower inflation by doing what he’s doing with housing. And it’s interesting enough, you know people have been saying, the corporate buying of houses, right, my old friend Tom Steyer is running for governor of California. A lot of people feel is a Mamdani figure, he’s saying the same thing. There’s this coalesce, by the way, coalescing with Warren, Steyer, I’ll put him out there with the President. The President is becoming quite a populist.”
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 January 23rd 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).
11. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holdings: 42
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the largest consumer goods companies in America. Its shares are down by 23% over the past year and by 1.4% year-to-date. Bank of America recently cut the firm’s share price target to $130 from $148 and kept a Buy rating. In its coverage, the bank discussed that Kimberly-Clark Corporation (NASDAQ:KMB)’s sector was experiencing value compression and the firm’s transformation plan was on track. Citi also reduced the share price target to $90 from $95 and kept a Sell rating. On the news front, Kimberly-Clark Corporation (NASDAQ:KMB) has experienced a couple of busy days. The firm and Kenvue’s shareholders approved the latter’s acquisition earlier this week, with 96% of Kimberly shareholders voting in approval. Kimberly-Clark Corporation (NASDAQ:KMB) also raised its quarterly dividend to $1.28 from $1.26 to mark the 54th consecutive increase. The dividend hike followed the firm’s fourth quarter earnings, which saw its adjusted earnings grow by 24% annually. Cramer tweeted about Kimberly-Clark Corporation (NASDAQ:KMB)’s dividend:
“UPS and KMB together part of a safe dividend portfolio”
10. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holdings: 108
GE Vernova Inc. (NYSE:GEV) is a nuclear power company that provides reactors. The firm also makes and sells gas turbines, wind turbines, and other heavy equipment. The firm has seen a flurry of coverage by analysts lately. For instance, BMO raised GE Vernova Inc. (NYSE:GEV)’s share price target to $785 from $780 and kept an Outperform rating on the stock. In its coverage, the financial firm commented on the company’s estimates of exiting 2026 with 100 GW in gas turbine commitments. BMO also discussed GE Vernova Inc. (NYSE:GEV)’s acquisition of transformer manufacturer Prolec, as it outlined that the deal could create significant synergies. UBS also hiked the share price target. It raised the target to $936 from $835 and kept a Buy rating on the shares. The bank commented that GE Vernova Inc. (NYSE:GEV)’s fourth quarter earnings had indicated margin strength for the firm’s medium-term operations. As the shares soared after earnings, Cramer tweeted:
“Nobody seems to know how high to take GE Vernova. They should have owned it already.. club name”
9. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holdings: 70
Construction and mining equipment manufacturer Caterpillar Inc. (NYSE:CAT)’s shares have gained 77% over the past year and are up by 9.9% year-to-date. Jefferies kept a Buy rating on the shares and raised the share price target to $750 from $700 ahead of the firm’s earnings report. The financial firm pointed out that Caterpillar Inc. (NYSE:CAT) was heading into its earnings with a conservative setup, as volume trends and margins appeared to be stable. Barclays also bumped up the share price target as it increased it to $610 from $555 and maintained an Equal Weight rating. One factor that the bank discussed about Caterpillar Inc. (NYSE:CAT) was the stock’s relation to interest rates as Barclays remarked that firms that could benefit from rate cuts were in a favorable position. Cramer has also regularly discussed Caterpillar Inc. (NYSE:CAT) over the past couple of months. The CNBC TV host has pointed out that the company has exposure to AI as it provides equipment that is used in data center construction. Following the favorable analyst commentary, Cramer remarked that Caterpillar Inc. (NYSE:CAT) could experience tailwinds:
“Yeah, look I think there’s been, still one more number bump, CAT, everyone’s recommending it, that’s because CAT makes engines, as does Cummins, and Bloom Energy, lets not forget that. BE’s real, although very expensive. That they are the engines to make sure your data center doesn’t go down. It was a windfall, people didn’t see it, they used to equate CAT with China, Jim Umpleby fixed that. Can CAT go higher? Yeah, because I think the number’s going to go up. Remember, there was a sense yesterday, with Vertiv not doing that well, with Eaton which I think is a very good data center, not doing that well. It’s everything shortage, and when you see shortage, everything else gets taken away. So if you watch Sandisk go down today and you watch Micron and if you watch Seagate and Western Digital, those can go down and that will allow CAT to go up. It is that, either or.”
8. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holdings: 76
Industrial conglomerate Honeywell International Inc. (NASDAQ:HON)’s shares are up by 7.9% year-to-date and by 16% year-to-date. The firm crossed the attention of banking giant JPMorgan lately in the form of analyst coverage. JPMorgan raised Honeywell International Inc. (NASDAQ:HON)’s share price target to $255 from $218 and bumped the rating to Overweight from Neutral. The bank commented that the industrial giant is trading at a valuation gap since the cumulative value of its different businesses appeared to be higher than the current trading price. As for Cramer, the CNBC TV host has recently focused on one of Honeywell International Inc. (NASDAQ:HON)’s businesses. This is the firm’s quantum computing division called Quantinuum. Cramer believes that the current hype surrounding quantum computing can also lead to positive outcomes for Quantinuum’s spinoff:
“If you take a look at a company like Honeywell which has just had a dramatic run here. Yeah that is without a doubt, a sign, that’s not a data center play. That’s aerospace pureplay coming. And this Quantinuum, this spinoff, that they own 53% of, this is going to be the best quantum play. So people going nuts for a quantum. So congratulations to Vimal Kapur to see the light that he had to spinoff that business. And it’s going to be the one that everybody wants, because quantum is so exciting to people.”
7. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holdings: 66
International Business Machines Corporation (NYSE:IBM) is one of the largest enterprise computing hardware and software providers in the world. The firm’s shares are up by 19.9% over the past year and by 5.2% year-to-date. Bernstein raised International Business Machines Corporation (NYSE:IBM)’s share price target to $330 from $280 and kept a Market Perform rating on the shares on Friday. The financial firm pointed out that the technology company might face headwinds from devaluation related to AI. Bernstein added that International Business Machines Corporation (NYSE:IBM)’s strength in the quantum computing business might already be reflected in the firm’s stock price. Cramer has also discussed the quantum computing business several times. The CNBC TV host has gone as far as to suggest that International Business Machines Corporation (NYSE:IBM), along with Google, is the only quantum computing stock that is worth buying. Naturally, he continued to lavish praise on the quantum business in this episode:
“Well you know that Arvind Krishna actually has quantum. And it’s actually being used. His stock is still undervalued. I think he is a great man who has taken a company that people think was left behind. They don’t look at what IBM does. There are still a lot of companies, the so called on premises, the big banks, and they’re using IBM. I just can’t say enough about what he’s doing. If he could get his way and quantum would come everywhere, we would be able to make it so that maybe we wouldn’t have to use that much energy, we wouldn’t be building, we wouldn’t be doing the Microsoft trade at Three Mile Island.”
6. SLB N.V. (NYSE:SLB)
Number of Hedge Fund Holdings: 70
SLB N.V. (NYSE:SLB) is one of the largest oil and gas production equipment providers in the world. Its shares are up by 20% over the past year and by 20% year-to-date. BMO Capital hiked the firm’s share price target to $55 from $53 and kept an Outperform rating on the shares in January. The financial firm commented that SLB N.V. (NYSE:SLB) fiscal fourth quarter earnings results saw the firm’s outlook for 2026 meet expectations. It added that the industrial equipment firm’s exposure to Venezuela, data center build-out, and other factors could generate tailwinds. Like BMO, JPMorgan was also out with an optimistic take on SLB N.V. (NYSE:SLB). It raised the share price target to $54 from $43 and kept an Overweight rating. JPMorgan outlined that the company’s 2026 outlook played a key role in the decision. Cramer has also discussed SLB N.V. (NYSE:SLB) and remarked that the stock might be among the few to buy in the aftermath of President Trump’s action in Venezuela. In this episode, he praised the firm’s earnings:
“SLB was a great quarter, congratulations to them for toughing it out.”
5. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Holdings: 48
Oil and gas exploration equipment provider Halliburton Company (NYSE:HAL)’s shares, like those of its peer SLB, have also performed well recently. They are up by 28.8% over the past year and by 13% year-to-date. Stifel raised the firm’s share price target to $35 from $32 and kept a Buy rating on the shares. The financial firm outlined that Halliburton Company (NYSE:HAL) was the US leader when it came to establishing new wells for production. It added that while US profitability was an important driver for the company, international activity and pricing could also generate tailwinds. Earlier in January, Susquehanna had also discussed Halliburton Company (NYSE:HAL)’s shares. The firm had raised the share price target to $36 from $29 and kept a Positive rating on the stock. It pointed out that the oil and gas equipment provider could end up benefiting from solid drilling activity in the US. Cramer also mentioned oil refining as he discussed Halliburton Company (NYSE:HAL):
“Halliburton really showed you the value of their infrastructure business. This is the refiner’s dream come true here.”
4. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Holdings: 47
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is one of the largest consulting companies in the world. The firm’s shares are down by 31% over the past year and are up by 4% year-to-date. The firm was dealt a setback recently after the Treasury Department terminated contracts with it due to a tax data leak. Following the announcement, Truist reiterated a Hold rating and a $98 share price target for Booz Allen Hamilton Holding Corporation (NYSE:BAH). The financial firm pointed out that the Treasury’s decision reflected roughly $4.8 million in annual revenue, which was a small portion of the consulting firm’s annual $11.41 billion in revenue. DA Davidson also raised Booz Allen Hamilton Holding Corporation (NYSE:BAH)’s share price target to $81 from $73 and kept a Neutral rating on the stock. DA Davidson pointed out that it had raised the consulting company’s earnings estimates for 2026 and 2027 to $6.10 and $6.75 from an earlier 5.50 and $5.90. Cramer briefly mentioned Booz Allen Hamilton Holding Corporation (NYSE:BAH) after the firm reported its earnings:
“Booz Allen is a stock that’s reported, it’s up huge today because I think DOGE had really annihilated them and that’s kind of passed.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holdings: 120
Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA)’s shares are up by 6.4% over the past year and are down by 1.7% year-to-date. Truist slightly trimmed the share price target to $438 from $439 and kept a Hold rating on the shares in January. The bank pointed out that Tesla, Inc. (NASDAQ:TSLA) was changing its business strategy by discontinuing the production of its Model S and X cars and integrating AI-related targets into its calendar year 2026 targets. Needham also reiterated a Hold rating for the shares following the fourth quarter earnings. It outlined that Tesla, Inc. (NASDAQ:TSLA) was benefiting from geographic diversity and autonomy strengths in the form of robust margins. As for Cramer, the CNBC TV host continues to be a believer in the firm as he holds the opinion that Tesla, Inc. (NASDAQ:TSLA) is more of a technology company than a car company. In this appearance, he discussed the trading patterns for the shares and narrative building:
“Now look, there’ll be people who come out the moment that Tesla’s down a little. We have a parade of analysts and investors who like to come on air and basically just, pump it. They don’t dump it. So I think it’s okay. But I am a big believer in Tesla, I think that the robot story is big. I don’t believe that the Chinese are so much better than us that we should just lay down and accept their hegemony.”
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holdings: 89
Applied Materials, Inc. (NASDAQ:AMAT) is one of the largest semiconductor manufacturing equipment providers in the world. The firm’s shares are up by 78% over the past year and by 19% year-to-date. Mizuho upgraded the firm’s rating to Outperform from Neutral and raised the share price target to $370 from $275. The financial firm pointed out that Applied Materials, Inc. (NASDAQ:AMAT) was among the key beneficiaries of a bump in wafer equipment capital expenditure in the US and worldwide. Two of the world’s largest chip manufacturers, Intel Corporation and Taiwan’s TSMC, are spending aggressively to expand their contract manufacturing capabilities and keep up in the AI race. Along with Mizuho, Deutsche Bank also upgraded Applied Materials, Inc. (NASDAQ:AMAT)’s shares. It bumped the rating to Buy from Hold and raised the share price target to $390 from $275. Cramer discussed the Deutsche upgrade and wondered whether it was too late for optimism:
“Shortage complex, one of the key parts of it is Applied Materials. So a Sandisk, a Seagate, once again, Micron. They very much need, more wafer equipment. Applied Materials upgraded today, Deutsche Bank, Hold to Buy, on a better outlook. This is one of these things where they just keep going. The analysts are trying so badly to catch up to all these companies. I regard these as capitulations, and I think the Deutsche Bank’s a capitulation. But it’s not working today because we’re seeing Intel going down, so people feel maybe there’s a problem with demand. There isn’t. This recommendation will work.”
1. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holdings: 82
ASML Holding N.V. (NASDAQ:ASML) is the world’s leading manufacturer of high-end chip fabrication machines. Its machines are typically used in the lithography phase of semiconductor fabrication. Lithography is among the earliest phases of making a chip, and it involves transferring complex circuit designs onto the wafer. ASML Holding N.V. (NASDAQ:ASML)’s shares are up by 92% over the past year and by 22% year-to-date. Barclays recently discussed the firm’s stock. It raised the share price target to €1,500 from €1,200 and bumped the rating to Overweight from Neutral. At the core of Barclays’ upgrade was lithography machine requirements stemming from the buildout of gigawatt-scale AI data centers. Some AI trends that the bank outlined that could generate tailwinds for ASML Holding N.V. (NASDAQ:ASML) include humanoid robots and consumer AI adoption. The firm’s machines, due to their importance in the chip manufacturing process, have also been sanctioned from being sold to China. Cramer discussed this aspect:
“ASML is, people I hate it when people keep saying that they don’t make anything in Europe. ASML is the best there is, they have a monopoly on that. That’s the one company that China really fears. China really wants their product, and they’re just saying, we can’t. . .”
While we acknowledge the potential of ASML 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 ASML 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.
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.
