In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the current climate surrounding AI spending and data center buildout. The past couple of weeks have seen multiple media reports mention AI computing infrastructure firms CoreWeave and Oracle. These reports have claimed that CoreWeave’s data center is experiencing construction delays in Texas, while Oracle has run into funding constraints for its planned 1 gigawatt data center in Michigan. Cramer discussed the funding constraints and added that the prices of AI chips were another key factor in the AI buildout. Likening the current situation to a Mexican standoff, the CNBC TV host commented:
“Yeah, look, I want to go a step back for a second. . . here’s the deal, the reason why we talk about it, is because if you don’t build this thing out, everything doesn’t. But if you do build it out, it’s all too expensive, whether it be from Micron, too expensive, the Google chip is too expensive, NVIDIA chip’s are too expensive. So what we have is this Mexican standoff. GE Vernova, I wanna expand, but I can’t get the power. Intrator would tell you I can’t build it. I don’t have the ability to have a structure that works if I’m Oracle, unless he issues equity. . .he being Larry Ellison. So we really have a situation where if someone doesn’t exert discipline soon, the whole edifice collapses. And that would be terrible. But if we get discipline and a slowdown. . . “
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 December 18th. 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).
8. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holdings: 92
Pharma giant Merck & Co., Inc. (NYSE:MRK)’s shares are up by 1.9% year-to-date on the back of a strong run since early November. Before the run started, the stock was down 16.8% year-to-date on the back of several factors. The year started out with Merck & Co., Inc. (NYSE:MRK) battling with China-specific headwinds that saw it halt its Gardasil HPV vaccine shipments in the country. Gardasil suffered from an inventory buildup due to factors such as low demand and market competition. Other headwinds for the stock included a $3 billion restructuring program and a top-line growth slowdown. While Merck & Co., Inc. (NYSE:MRK)’s blockbuster cancer drug Keytruda has become a best seller worldwide, it has also increased the pressure on the firm to come up with successors.
More recently, on November 18th, Merck & Co., Inc. (NYSE:MRK) announced that a phase two trial for its Winrevair drug for patients with combined post- and precapillary pulmonary hypertension was successful to allow it to move forward to a phase three study. Bank of America raised the firm’s share price target to $120 from $105 on December 15th as it recalibrated its FY27 EPS estimates. Cramer also believes that Merck & Co., Inc. (NYSE:MRK) might be undervalued, as he commented:
“Merck is an inexpensive stock, all these stocks are coming back.”
7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holdings: 114
Eli Lilly and Company (NYSE:LLY) is another top Cramer healthcare stock. Over the course of the year, the CNBC TV host has praised the firm’s lead in the weight loss drug industry and its manufacturing capacity. Cramer has also asserted that Eli Lilly and Company (NYSE:LLY) has a robust drug pipeline that can help the firm in non-weight-loss drug markets. However, more recently, Bank of America cut the firm’s share price target to $1,268 from $1,286 on December 15th as it kept a Buy rating on the shares. In its note, the bank outlined that Eli Lilly and Company (NYSE:LLY) is expanding its presence into new markets, and the firm’s 2027 earnings can help capture its growth potential.
Discussing Eli Lilly and Company (NYSE:LLY), Cramer shared his thoughts on an area he regularly discusses. This area is the weight loss pill market, and he believes that if Eli Lilly and Company (NYSE:LLY) can successfully execute the pill’s development, then the firm could gain ground against Novo Nordisk:
“Now it’s interesting, Ely Lilly has a study which says basically you can take the pill and they’re gonna get business from Wegovy with the pill. It’s probably worth a hundred points, but people are, at this level, refusing to pay more, it’s almost a double top, I don’t think so, because if you can take the pill and switch from Wegovy, that could be game, set, match for Lilly, against Novo Nordisk.”
6. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holdings: 89
NIKE, Inc. (NYSE:NKE)’s turnaround has been a frequent feature of Cramer’s discussion in 2025. While the shares 20% year-to-date and were down by 11% ahead of last week’s fall, the CNBC TV host has continued to express optimism about the firm’s turnaround under CEO Elliott Hill. After NIKE, Inc. (NYSE:NKE)’s second fiscal quarter earnings release on December 18th, multiple analysts came out with reports for the firm. For instance, Truist cut the share price target to $70 from $85 on December 19th as it kept a Buy rating on the shares. The firm explained that while NIKE, Inc. (NYSE:NKE) was experiencing headwinds in China, the firm’s wholesale operations in North America and retail partner expansions were doing well. BTIG cited optimism in Hill on the 19th as well, after reiterating a Buy rating and a $100 share price target. Cramer discussed NIKE, Inc. (NYSE:NKE)’s China problems and shared insights about what the shares might need to perform well:
“Remember the turns that we need, the Nike turn, the Starbucks turn, the FedEx not kind of minor turn. I think all three of them, Nike has too much inventory still. . .
“I think that he’s worried about, Elliott Hill’s worried about China, he doesn’t have any clarity on China, if he had more clarity on China and he had more innovation which is what I’m counting on. It’s the two Is here, innovation, they need more innovation, and inventory, they need less. If you can get the two Is going, the stock goes to a hundred rather quickly. I think the stock gets three downside and 20 upside.”
5. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holdings: 60
Logistics giant FedEx Corporation (NYSE:FDX) is a regular feature of Cramer’s morning show. Cramer has repeatedly shared optimistic views about the firm’s CEO and its ongoing turnaround. His optimism is also matched by analysts. For instance, Stifel kept a Buy rating and set the share price target to $305 for FedEx Corporation (NYSE:FDX)’s shares on December 17th. The firm remarked that it sees the potential for meaningful valuation upside and added that the upcoming second-quarter earnings would serve as an indicator for its Express business’ cost controls. Stifel was followed by BMO Capital on December 19th as the firm raised FedEx Corporation (NYSE:FDX)’s share price target to $290 from $265 and kept a Market Perform rating on the stock a day after the firm released its second quarter earnings. Cramer’s prediction for the firm turned out to be correct as its profit per share of $4.82 beat analyst estimates of $4.11. Ahead of the earnings, the CNBC TV host had asserted that FedEx Corporation (NYSE:FDX)’s CEO was a winner:
“I think FedEx could be a blowout. . .we had a truck driver shortage, but other than that, holy cow. I think the world of Raj, I think he’s sensational, and I think he can deliver the real numbers.
. . .People have to listen to Raj, he is so good. I love him, I think he’s done a remarkable job at FedEx. And I think he’s a winner. . .he inherited Mr. Smith’s company and he’s done a fantastic job.”
4. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holdings: 33
Shake Shack Inc. (NYSE:SHAK) is a fast food restaurant firm. It has been at the center of analyst attention over the past couple of months, with the latest coverage coming from JPMorgan on December 18th. The bank upgraded Shake Shack Inc. (NYSE:SHAK)’s rating to Neutral from Underweight as it cut the firm’s share price target to $90 from $95. The bank pointed out that the firm is transforming itself into a quick-service restaurant company while remaining cash flow positive. JPMorgan’s comments came after Raymond James had maintained a Strong Buy rating and a $150 share price target for Shake Shack Inc. (NYSE:SHAK)’s shares on November 25th after the restaurant firm’s CFO announced her resignation. In his previous comments about the company, Cramer has praised its CEO but added that beef prices continue to be a sore point. His thoughts in this appearance reiterated the sentiment:
“Look, SHAK is very interesting. The problem with SHAK, was the stock was going straight down, the analysts had it dead right, said sell. It was much more of a victory call. I happen to think Rob Lynch is doing great but this company, is 100% tied to the beef future.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holdings: 234
NVIDIA Corporation (NASDAQ:NVDA)’s shares haven’t performed well lately. They are up by 30.9% year-to-date, but since October end, the stock is down by 12.6% amidst worries about an AI bubble and competition in the AI chip industry. However, the weakness hasn’t stopped analysts from expressing optimism about NVIDIA Corporation (NASDAQ:NVDA)’s shares. One such example came on December 19th when Tigress Financial kept a Strong Buy rating and raised the share price target to $350. As part of its rationale, the financial firm pointed out that NVIDIA Corporation (NASDAQ:NVDA) is the top investment choice in AI and enjoys a comfortable position across the data center stack. It added that the firm was also making inroads into other markets, such as autonomous driving. Tigress’ optimism followed Bernstein’s coverage on December 15th when the firm reiterated an Outperform rating and a $275 share price target for NVIDIA Corporation (NASDAQ:NVDA)’s stock. Cramer’s been highly enthusiastic about the firm throughout 2025, but in this appearance, he advised caution:
“It’s just that NVIDIA, they, they have no shortage of customers. And all these stories seem to act as if there is. Now NVIDIA, horrible chart. NVIDIA, nothing new, not until the spring, so NVIDIA has to mark time. . .NVIDIA’s a mark time stock right now.”
2. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holdings: 60
Affirm Holdings, Inc. (NASDAQ:AFRM) is an American payments network operator. Cramer discussed the firm on the episode of Mad Money aired on December 15th as he recalled the reaction to the fiscal first quarter earnings. These results, which were released on November 6th, saw Affirm Holdings, Inc. (NASDAQ:AFRM) post $933 million in revenue and $0.23 in earnings per share. Both of these beat analyst estimates of $883 million and $0.11. Cramer called the earnings “impressive” and added that the stock had drifted lower since then due to concerns about consumer spending. On December 9th, Wolfe Research initiated coverage of Affirm Holdings, Inc. (NASDAQ:AFRM)’s shares and set a Peer Perform rating. The analysts explained that despite growth drivers, the firm’s current valuation left little room for additional upside. Affirm Holdings, Inc. (NASDAQ:AFRM)’s shares also jumped in December after news broke about the firm renewing its contract with Amazon. Cramer briefly discussed the stock in this appearance and praised the firm and its CEO:
“Affirm’s been my favorite, that’s Max Levchin, he’s great.”
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holdings: 86
Payments platform operator PayPal Holdings, Inc. (NASDAQ:PYPL) crossed Jim Cramer’s attention after a fresh piece from investment bank Morgan Stanley. The note was quite impactful as it saw the bank not only downgrade the shares to Underweight from Equalweight but also cut the share price target to $51 from $74. As part of its rationale, Morgan Stanley commented that PayPal Holdings, Inc. (NASDAQ:PYPL)’s checkout integrations appeared to be sluggish and could end up affecting the firm’s margins. The bank wasn’t the only one that lowered its price target recently. For instance, on December 5th, Deutsche Bank cut PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price target to $65 from $75 and kept a Hold rating on the shares. The target cut had followed UBS reiterating its Hold rating and a $80 price target on December 4th, after also noting the dip in checkout integration. As for Cramer, he called the Morgan Stanley coverage “devastating” and discussed PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price:
“But everybody seems to dislike PayPal. Morgan Stanley comes out with a piece today that’s so devastating. Downgrade to Underweight, this is PayPal. . .they’re talking about agentics not helping, earnings risk, slowing Venmo. Branded share loss. Holy cow, that stock’s going lower, maybe much lower.
“. . melting ice cube they call it. . .it’s a good piece.”
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