Jim Cramer, the host of Mad Money, shared his perspective on Wednesday about the transformative role artificial intelligence is set to play in the workforce.
“If you want to know what’s going to happen in the future, not the near future, like next week or tomorrow, but next year and beyond, then I think you must factor in artificial intelligence. When it comes to employment, both public and private, it might be the most important force out there.”
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While Cramer noted that he does not align himself with worst-case-scenario thinking, he acknowledged the warnings raised by Dario Amodei, the CEO of Anthropic. In a recent interview with Axios, Amodei predicted that artificial intelligence could eliminate up to half of all entry-level white-collar jobs in the United States. He projected that it could drive the national unemployment rate as high as 10% to 20% within the next one to five years. Cramer called attention to the severity of the predictions and noted that Amodei raised concerns about job losses in sectors such as finance, technology, consulting, and law.
Cramer also discussed the potential for AI and robotics to take over jobs that are repetitive, unpleasant, or physically dangerous, roles that people often accept only because of the high pay tied to the discomfort or risk involved. He questioned why it has been so difficult for society to fully grasp what artificial intelligence is capable of doing. He suggested that many in the tech industry may be intentionally avoiding the topic as “that’s not exactly good PR.”
“The bottom line: Let’s see if the agents can do our jobs better than we can. Let’s see if we’ll even play a role in our own world or whether human workers will become obsolete and we’ll all just watch TV all day.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 28. 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).
8 Stocks on Jim Cramer’s Radar
8. NuScale Power Corporation (NYSE:SMR)
Number of Hedge Fund Holders: 18
During the lightning round, a caller asked for Cramer’s insight on NuScale Power Corporation (NYSE:SMR), and he commented:
“But why don’t we just buy GE Vernova? I mean, you know, it’s been a winner for the club. I think it can go higher. I really like it. Look, they’re both parabolic. Nuscale has been straight up, and so has GE Vernova, but GE Vernova’s got a book of business. That’s what I like.”
NuScale (NYSE:SMR) develops small modular reactor technology, including its NuScale Power Module, a water reactor designed to produce 77 megawatts of electricity per module. Earlier in March, when Cramer was asked about NuScale (NYSE:SMR), he showed skepticism as he said:
“You know, I kept waiting for more deals to occur and waiting and waiting. It’s a new year and they’re not happening. And I’m not seeing them from Vernova. I’m not seeing them from anyone. So I’ve become very, very skeptical.”
On May 29, Canaccord analyst George Gianarikas increased the price target on NuScale Power (NYSE:SMR) from $26 to $35 while maintaining a Buy rating. The firm noted that the NRC website confirms approval of NuScale’s 77 MWe per module uprate. The approval eliminates a concern for investors and opens the door for a possible firm order before year-end.
7. Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Holders: 47
When a caller inquired after Cramer’s thoughts on Leidos Holdings, Inc. (NYSE:LDOS), he said:
“Leidos, I like it. You know, look, I am worried that the defense budget may be cut, but this is homeland security. I think it’s a good opportunity. The stock’s come down a great deal. Let’s pull the trigger.”
Leidos (NYSE:LDOS) offers advanced technology and engineering solutions across defense, cybersecurity, healthcare, energy, and infrastructure, serving both government and commercial clients. The company’s offerings include national security software, air traffic systems, power grid services, and border security technologies.
On May 27, Baird downgraded Leidos (NYSE:LDOS) to Neutral from Outperform and reduced its target price to $163 from $176. The firm pointed to growing risks in the government services sector and noted a downturn in contract activity beginning in the first quarter. Its research indicates several contracts have been canceled in Q2, federal spending has slowed, and recent IDIQ terminations have impacted the backlog. Given these developments, the firm sees reason to be more reserved on the stock.
6. lululemon athletica inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
Discussing apparel stocks, Cramer mentioned lululemon athletica inc. (NASDAQ:LULU) and said that he thinks “that it should be bought.”
“[The stock] sold off some more after Liberation Day because Lulu has a huge manufacturing presence in Vietnam, which was set to be hit with a 46% tariff…. Once those reciprocal tariffs got delayed, Lulu was able to mount a comeback. But can this rebound continue? I’m cautiously optimistic. I’m going to tell you why. First, I’m still hopeful that the tariffs on Vietnam won’t end up being anywhere near that 46% level that was announced on Liberation Day…
Second, I also believe that the consumer’s doing better than most of Wall Street seems to assume, in keeping with that much stronger-than-expected consumer sentiment number we just got yesterday. Even when consumer sentiment looked terrible, actually consumer spending never really took a hit, though…. The company has a strategic plan in place, which is focused on product innovation, the guest experience, and the market expansion. They’re very rigorous about this. They’ve been doing this for a couple of years. It’s been paying off…
Unlike the setup for the previous quarter where expectations were sky high after Lulu had raised its outlook just a couple weeks before the quarter ended, expectations feel very low right now. Oh, I like this setup…
I think it should be bought, given that expectations for the company are now lower than at any point dating back to mid-2024, which was a great time by the way to buy LULU. This is reflected in the company’s forward price-to-earnings ratio, which currently stands at just 21 times earnings. That’s nearly a 50% discount to the stock’s average valuation over the past five years. Good timing.
So the bottom line: lululemon is a beaten-down retail that I think can continue making a comeback. We’ll see what happens next week, but for the time being, I am inclined to take a chance here. Maybe do it with call options, deep in the money. Why not? The expectations for lululemon are so low that the risk-reward seems pretty skewed to the upside.”
lululemon (NASDAQ:LULU) designs and sells athletic apparel, footwear, and accessories for both women and men, and it focuses on products for activities like yoga, running, and training.
5. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Fund Holders: 67
A caller asked if they should start a position in Interactive Brokers Group, Inc. (NASDAQ:IBKR). Here’s what Cramer had to say in response:
“The brokerage firm that is very, very smart and very well run. And I do like brokers, particularly those that are able to let us do what we want, and that’s one of them. I say buy.”
Interactive Brokers (NASDAQ:IBKR) provides electronic trading services for a wide range of financial instruments, including stocks, options, futures, and cryptocurrencies, while also offering custody, brokerage, and lending solutions to both institutional and individual clients. Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q4 2024 investor letter:
“Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading online brokerage house that serves customers in over 200 countries. Positive returns during the quarter reflected strong fundamental performance, including year-over-year growth of 30% in accounts, 33% in client assets, and 45% in margin loans. These increases were driven largely by Interactive Brokers’ strength in international markets, as non-U.S. investors looked to access U.S. markets and equities, which largely outperformed their global peers in 2024. The company also participated in the broader rally of financial stocks following the Republican elections sweep. Expectations of heightened capital markets activity, a more pro-business regulator, and the potential for increasing market volatility all bode well for the company’s volumes, account growth, and earnings. We believe Interactive Brokers has a compelling long-term growth path and remain investors.”
4. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 72
A caller asked if Reddit, Inc. (NYSE:RDDT) stock is a buy here, and Cramer replied:
“Okay, I want you to buy Reddit here. Let me tell you something, this stock has been coming down. It was a short squeeze, went all the way up to 200. That shouldn’t have happened. I think Steve Huffman is doing a remarkable job, and you are onto something. Reddit, I think, is probably the best bang, really the best bang for the buck that there is right now in advertising and people don’t realize that. I’ve done so much more work on this. I can’t even tell you how much work I’ve done on this, and I keep coming back and… you know what, Insta is second. Alright, TikTok second, kind of even. First is going to be Reddit, bang for the buck. You are onto something because the verticals are so precise. They’re so precise…. I used to say TikTok first. I used to say Insta first. No, their backseat to Reddit. You heard it from me.”
Reddit (NYSE:RDDT) runs a widely used platform where users share content, take part in discussions, and engage in communities centered on specific interests.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
A caller asked if it is a good time to buy Chevron Corporation (NYSE:CVX) stock, given that it has fallen from its 52-week high. In response, Cramer said:
“Okay, I think that you have to have a view on oil when you think about this one…. And I think that first, I think oil’s going lower. I think it goes to the 50s. I think it’s part of the president’s plan to be able to reduce the inflation rate. However, it does yield 5%. I don’t want to reach for yield. I never want to just say, you know what, I’ll take the 5% and not worry about the common stock. You are going to wait till this stock at 136 goes to 130 before you pull the trigger and not until then.”
Chevron (NYSE:CVX) is involved in a wide range of energy and chemical activities, including oil and gas exploration, production, refining, transportation, and marketing. The company also focuses on the development of renewable fuels, petrochemicals, and carbon capture technologies.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 93
When a caller asked Cramer which is a better investment right now, Walmart or Costco Wholesale Corporation (NASDAQ:COST), Cramer remarked:
“Okay, Costco’s about to report tomorrow, and I think that no matter how good the quarter is, the stock will sell off because that’s been the pattern now for the, I’d say, the majority of quarters. That’s just the way it is. So therefore, I’m going to tell you, take that gun away from my head when it comes to Costco. I like Walmart very, very much. Buy Costco after it declines, if it does go down, because Costco is actually on fire. It’s just that they tell you how each month’s going to be already, no surprises there, and people just say, I’m bored by the boredom.”
Costco (NASDAQ:COST) operates a warehouse business that requires a paid membership. The company sells bulk quantities of both brand-name and private-label products at reduced prices. It focuses on customers who prefer to save by purchasing more at once.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
During the episode, Cramer commented on GE Vernova Inc. (NYSE:GEV) as he said:
“Who’s to say that quantum computing won’t be the next technology? The naysayers tell us it’ll take decades before any of this is useful, but the naysayers are not in control anymore. Same deal with nuclear. Even though there’s really only one company that’s ready to profit from new nuclear reactors, and that’s GE Vernova.”
GE Vernova (NYSE:GEV) delivers technology and services used in producing, moving, converting, and storing electricity. The company works across several energy areas, including gas, nuclear, hydro, steam, wind, solar, storage, and grid infrastructure. It also supplies both hardware and software designed to help manage and distribute electrical power more effectively. Artisan Partners stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q4 2024 investor letter:
“Notable adds in the quarter included GE Vernova Inc. (NYSE:GEV) and Oracle. GE Vernova is the power, wind and electrification spinoff from the former GE conglomerate. The company benefits from large global market shares across its businesses, high barriers to entry and a substantial installed base that generates multiyear service revenue streams. Now that the company is standing on its own, we believe it is in the early innings of a turnaround story while benefiting from an attractive underlying demand environment. As the world continues to decarbonize, the resulting need for power, wind and electrification equipment is poised to drive attractive growth over the coming years. Our work on AI data center growth and electrification implications strengthened our conviction in GE Vernova in the quarter, particularly its natural gas business, which we believe will need to act as a bridge fuel as technology companies try to balance AI data center growth with decarbonization targets.”
While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) as an investment, our conviction lies in the belief that 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 GEV and that has 100x upside potential, check out our report about this cheapest AI stock.
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