In this article, we will look at the stocks on Jim Cramer’s radar as he cautioned that SpaceX could blow past its opening price. The host of CNBC’s Mad Money said on Thursday that exceptionally strong demand for SpaceX shares could push the stock to unsustainable levels once trading begins.
Today was the day you found out… allocation for SpaceX, and you could see the market starting to levitate early on as we began to hear that the deal was tight as a drum. When you think about IPOs, consider them in the context of Goldilocks and the three bears. You don’t want the deal too cold because then it blows up in your face. You don’t want it too hot where you have meaningless gunners in there that will send the stock to the stratosphere and flip it at the opening. You want it to be just right. Now, what’s just right? Where the stock is a little bit above… [the] deal price. If it’s at $135, you want the stock to go to about $140, maybe $142. Meanders higher, perfect, no runaway freight train.
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Cramer said that while heavy investor interest is often seen as a positive sign, excessive enthusiasm can create risks of its own. He said he is especially concerned about inexperienced investors entering market orders instead of limit orders. He mentioned that if a large number of buyers were to rush into the stock at the same time, SpaceX could briefly reach a valuation comparable to that of the world’s largest publicly traded companies.
Can a $4 to $5 trillion stock really be at hand? For a few minutes, perhaps, just as long as it takes to gaff a marlin. The bottom line… That’s a terrific catch, but if it isn’t stuffed and mounted fast, guess what? It ends up stinking to high heaven.
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 11. We listed the stocks in the order that Cramer mentioned them.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
6 Stocks on Jim Cramer’s Radar and His Caution Regarding SpaceX IPO
6. Chevron Corporation (NYSE:CVX)
Chevron Corporation (NYSE:CVX) was one of the stocks on Jim Cramer’s radar as he cautioned that SpaceX could blow past its opening price. Cramer discussed the stock in light of the President’s comments, as he said:
If you’re wondering why we don’t make investing decisions based on what the President says about the war, it’s because when he does, we get buried. He says that talks are going well? You know what? Go buy Chevron because that probably means the talks are going to go wrong. He says that things are going badly? That means you sell Chevron because it means that things are probably going to improve. Rarely has there been a more consistent strategy, and don’t the Iranians know it.
Chevron Corporation (NYSE:CVX) is an integrated energy company that explores, produces, refines, and markets oil, natural gas, and petrochemical products. During the May 12 episode, a caller mentioned their wish to start a position in the stock but was not sure yet. In response, Cramer commented:
No, you’re absolutely right to do Chevron. The one thing I would tell you is that the last time that oil was at these prices, Chevron was dramatically higher, but you do get a 3.8% yield, and they have great cash flow. And Mike Wirth is running it, and I’m going to say pull the trigger. I like it.
5. Microchip Technology Incorporated (NASDAQ:MCHP)
Microchip Technology Incorporated (NASDAQ:MCHP) was one of the stocks on Jim Cramer’s radar as he cautioned that SpaceX could blow past its opening price. A caller mentioned that they bought “half a position” in the stock, and asked whether they should add more. Cramer replied:
It’s good. That’s industrial internet. I think it’s terrific. I think you should buy the other half, frankly. I think it’s a good one.
Microchip Technology Incorporated (NASDAQ:MCHP) produces secure embedded control solutions, including microcontrollers, microprocessors, analog components, and memory hardware. In addition, it licenses its proprietary flash memory technologies and provides contract manufacturing, wafer foundry, and engineering services. Madison Investments stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its fourth quarter 2025 investor letter:
We sold two holdings, Trex and Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology is one of the leading analog and microcontroller companies, benefiting from long product lifecycles and diverse end markets. Microchip struggled with supply chain challenges over the past 24 months as lengthening production lead times led to customer over-ordering. The company’s founder, Steve Sanghi returned to the CEO role this past summer and has been successful in reducing excess inventory and positioning the company for a recovery in market share. We are encouraged by Steve’s action plans, but as the stock’s valuation has recovered, we elected to sell our small stake.
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