Jim Cramer, the host of Mad Money, recently discussed how major capital expenditure (CapEx) commitments from top tech companies have been received by the market, especially in light of the introduction of DeepSeek. According to Cramer, investors had initially embraced these significant AI investments, with many tech giants committing large sums toward advancing artificial intelligence.
One such important venture was Stargate, an AI infrastructure project unveiled at the White House on January 21st, the first full day of Trump’s presidency. He added:
“They’re spending a hundred billion upfront and could go up to $500 billion over the next four years. Now some of them question whether these companies even have that kind of money, but hey, you know who didn’t care? I mean Wall Street… Now, something big changed in recent weeks though, and that was the arrival of DeepSeek.”
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Cramer noted that DeepSeek, the Chinese generative AI tool, has demonstrated performance nearly on par with the top U.S. AI systems, but at a fraction of the cost, using far less hardware. He highlighted that although DeepSeek was launched in 2024, it only caught the attention of Wall Street and Silicon Valley in mid-January 2025 after a Chinese quant hedge fund released a white paper detailing the technology’s creation. The paper’s release on January 20th brought DeepSeek into the spotlight, and the market reacted strongly, triggering a significant tech sell-off.
“The collective acts about DeepSeek caused a huge nasty tech sell-off… The still unanswered question that DeepSeek has forced investors to ask is whether or not developers of AI applications still need to spend huge amounts on infrastructure in order to get the best results.”
Cramer mentioned that despite this uncertainty, the big tech companies have maintained their capital expenditure forecasts, and so far, they have not been penalized for sticking to these predictions. Cramer pointed out that these companies do not appear to be taking DeepSeek’s impact seriously.
“Bottom line though, we’ve gone pretty quickly from a world where major investments in AI infrastructure are cheered, I mean, literally cheered by investors to a less certain world where it seems that the investors don’t like it and are starting to get skeptical about some of these big spending commitments. Now that’s a huge change, people, and if it continues this way, we might need to rethink our top picks and tech going forward.”
13 Stocks Jim Cramer Recently Talked About
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 5. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
13 Stocks Jim Cramer Recently Talked About
13. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 5
Cramer said that he would be a buyer of Alliance Resource Partners, L.P. (NASDAQ:ARLP) and guessed that President Donald Trump might like coal.
“It’s intriguing to me because I think the president doesn’t believe in, in traditional global warming. If that’s the case, then he must really like coal. I’m not a big fan of coal, but that has to do more because I believe in the science and the, but therefore I think if he, I’m not in charge, he is. I would buy the stock.”
Earlier in January, Cramer discussed Alliance Resource Partners (NASDAQ:ARLP) and said:
“… then there’s another company called Alliance Resources Partners LP. It’s a master limited partnership that’s the largest coal producer in the eastern United States. Incredibly profitable company sells at less than nine times earnings as befits a slow to no growth enterprise and it’s not undiscovered because coal prices have actually done well thanks to overseas demand.
All that said, this market embraces anything energy, that means coal will soon be back and it makes a lot more sense now that coal is a champion in the White House. If you hear coal mentioned by the president and it’s picked up… Alliance Resources will be the one people will grab because it’s a master limited partnership. It has a terrific 10% yield, but the yield’s only that high because people think that the payout needs to be cut. May well be true.”
12. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 7
Cramer expressed his lack of enthusiasm when he was asked about Redwire Corporation (NYSE:RDW) and stated:
“Well, okay, so Redwire is part of a company, it’s, it does space work, and Professor Ben Stoto, who works with me, we both are kind of sceptical of space stuff and I think we just have to kind of hold off. That said, we’ve done some work on this and I’m not gonna say that we’re thrilled… It’s not necessarily one of our favorite stocks, Redwire. I think that we’re gonna have to hold off.”
Redwire (NYSE:RDW) is a space infrastructure and innovation company offering essential solutions for both government and commercial clients in the space sector. When Cramer discussed the company in October 2024, he remarked, “Everybody wants to be in the space business, and I’ve got to tell you, I don’t.”
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