Jim Cramer, the host of Mad Money, said on Friday that the data center space may be starting to steady itself after a difficult stretch in the market.
“After an agonizing period where Wall Street decided it was done with one of the greatest growth stories in history, artificial intelligence and everything attached to it, today, we got a reprieve, maybe even a second wind that showered money on the cohort. For those of us with positions that rely on the AI data center build-out, like my Charitable Trust, do you know that this was one of the best days of the year? Although that wasn’t fully reflected in the averages… I gotta say, today was a real relief because owning the AI stocks has been a very rough ride lately. First, we now realize that there may be not enough money to go around and keep the data center build-out going.”
READ ALSO: Jim Cramer’s Latest Insights on These 13 Stocks and Jim Cramer Was Bullish on 10 Stocks Due to Share Buyback Activity.
Cramer said the industry has run into real barriers, ranging from worker shortages and limited materials to insufficient power supply. On top of that, he noted that the stock market has begun penalizing hyperscalers for aggressive expansion plans that were once celebrated by Wall Street. He noted that the companies continue spending enormous sums in an effort to keep pace with one another, and Wall Street is showing clear signs of fatigue with that approach.
“High expectations can be a real killer of tech stocks, and expectations are staying way too high. Now… the good news is that the year of magical investing has ended, so almost every one of the speculative stocks, meaning the quantum computing, the nuclear stocks, the undercapitalized data center builders, the bogus Bitcoin extensions, and alternative power companies, they’ve all gone out of style, thank heavens. I find those groups nauseating because so many of you were losing money. I was doing my best to try to get you out of them, but I didn’t.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 19. We listed the stocks in the order that Cramer mentioned them. 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).
7 Stocks That Were on Jim Cramer’s Radar
7. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 89
NIKE, Inc. (NYSE:NKE) is one of the stocks that was on Jim Cramer’s radar. Cramer highlighted the role and strategy of the company’s CEO during the episode, as he commented:
“How about Elliott Hill at Nike? This situation’s much more complicated. Elliott inherited a broken Nike, a company that literally seemed to have lost every bit of its former mojo…. Nike lost it. Under Elliott’s predecessor, the company became a dull, non-inventive, mediocre sneaker play, with its product being pushed through the digital channel, even though most people like to try on a pair of expensive shoes. Elliott had to dismantle North America, which had been divided into men’s, women’s, and children’s shoes, returning the business to sports verticals like running, basketball, international football.
He had to clean up hundreds of millions of dollars in old, not that attractive inventory. He had to patch up destroyed relations with retailers, and he pulled it off in a little more than a year’s time. It was incredible. The Nike US business had some killer numbers in the quarter announced last night. The turns at hand. So why did the stock get annihilated then, down more than 10%? Because the previous regime didn’t just screw up the US, it put China on a course of destruction that’s come home to roost right on Elliott’s head… And yes, it was that bad.
Go read the conference call. When you do, you hear this line, ‘We always believed that our growth will come through sport, but the reality is we’ve become a lifestyle brand competing on price in China.’ Lifestyle brand? Nike? Competing on price? That’s for mortals. Nike’s immortal. Numbers were horrendous… This is awful. It’s simply too hard to turn things around in one or two quarters, even though Nike’s US business has already found its footing. Elliott’s now setting his sights on China. You either believe he can win, or if you don’t, you have to sell. I don’t know when this stock will make a comeback, but I bet it happens in the next year. And when it does, the $58 stock was headed to $80. However, if you’re not a believer in Elliott, then just sit this one out because I’ve got a feeling you won’t have the patience to wait for the turn.”
NIKE, Inc. (NYSE:NKE) is an athletic and casual footwear, apparel, equipment, and accessories company that sells its products under brands, including Nike, Jordan, and Converse.
6. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 60
FedEx Corporation (NYSE:FDX) is one of the stocks that was on Jim Cramer’s radar. Cramer called it a “remarkable company” during the episode, as he said:
“Right now, I see two of these CEOs orchestrating turnarounds, happening right under our noses, under the leadership of Raj Subramaniam at FedEx and Elliott Hill at Nike, but only one of which is being recognized. FedEx, which was built by the late Fred Smith, is a remarkable company that’s become ubiquitous with one of the greatest competitive modes I’ve ever seen. Only United Parcel can rival… [it], and I think FedEx is a better company… Fred told me that I’d be dazzled by his successor, Raj. Well, of course, Fred was right about that, just like he was right about so many other things…
This latest quarter showed a FedEx that’s a better leader than I ever thought possible, with incredible numbers, albeit [an] unheralded move to the business-to-business space, pivoting some from its previous business to consumer orientation. Business-to-business is sticky. It is where the money is. FedEx pretty much owns the pharma delivery business now, the biggest segment of delivery in the country. They’ve also developed a data center business that could eventually be huge…
Best of all, this happened at a time when you might have expected FedEx to report a series of missed numbers thanks to the tariffs. Think about it. China had been big. Now, it’s diminished. Tariffs have roiled almost all cross-border trade. We have a slowdown in the US and need the Fed’s help. All these things would have probably derailed the old FedEx. Not so Raj’s. Yet, the stock barely reacted to last night’s quarter. It’s had a big run. My advice, stay long. Comes down, buy more.”
FedEx Corporation (NYSE:FDX) provides transportation, shipping, and logistics services, including express and freight delivery, e-commerce solutions, and supply chain management.
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