We recently published a list of Jim Cramer Says I’m With Trump & Discusses These 12 Stocks. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other stocks that Jim Cramer discusses.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented that President Trump might be lenient towards major American companies when it came to tariffs. Tariffs on foreign manufactured goods threaten American firms as well since their operations are located overseas. “I think the President is being a little more responsive to great American companies,” he said. Among these companies, Cramer wondered why should the firm that sells the iPhone have to pay considering that it is investing millions in US jobs.
Another hot topic currently in the technology and semiconductor industry is AI chip sanctions. These rules prevent AI GPUs from being sold unrestricted to most countries in the world. Commenting on the rules, Cramer commented:
“And by the way the big thing that’s on the table is the diffusion, is this ridiculous stuff that Biden put through. In the last week on Saturday night. A Saturday night special, we should call that.”
He went on to add that he hoped that the rules were reversed because “it was so selective what countries they picked that could get, the 18 countries. It made no sense.”
As for the tariffs, Cramer hasn’t held back in supporting Trump but maintained that the President should consider a lighter approach in his announcements. He kept the view this time around as he remarked:
“I’m going with the Trump view. And I think the President’s going to be very level headed about the companies, and countries, that play ball. I mean, you know you think I mean, Hyundai I had to that. Korea’s gotten a free ride. I’m waiting for when Mercedes, Volkswagen, and Beamer have to pay the price. Because they’ve had a real free ride in our country.”
“David, we’re a free trader. And everyone has abused us,” Cramer remarked to co-host David Faber.
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 March 25th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders In Q4 2024: 107
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese technology and eCommerce giant. A key player in the country’s technology and AI ecosystem, it made headlines during the week after co-founder and chairman Joe Tsai remarked that market expectations about AI might be significantly inflated. Cramer, who is one of AI’s biggest proponents based on his interactions with NVIDIA CEO Jensen Huang, had a lot to say on the matter:
“People, talking about a bubble. Uh, they did DeepSeek out of China. Talked about, they’re way ahead of us. This is the way Sputnik went in the period where we were in a cold war. And it always turned out like they were saying things and they really weren’t. . .right, they were trying to steer us wrong. I think Joe Tsai is a great guy. And, this surprised me. He should go a data center, he should speak to NVIDIA, he should go speak to Michael Dell. You would realize that there is as, Jensen’s told me, a hundred time more power than we need versus last year. A hundred times. So I mean, and remember, we’re gonna have robots. And robots need a huge amount of compute.”
“I think just. . .they don’t get it. They don’t get what they’re doing and they say things that in retrospect are a little more reckless. And they don’t help the cause. And now people here might say, the reaction might be this is something the government would want. I don’t think, I think Joe Tsai’s an independent guy but the government wants to hear that, in America, that we should do less. That there’s a bubble. But these companies are all struggling. To beat each other. Now there’s only a couple that do it. Others will fall by the wayside. But this is not unlike what happened in our country. We ended up with Amazon, we ended up with Google. You know you don’t want to be America Online. That’s what this is about. It’s about America Online. And why does Joe Tsai not see that? Because Joe Tsai’s not here. It’s AOL. And it’s just incredible to me how important it is to be number one. And Jensen has taught me this. He’s schooled me on this.”
“I went to a data center last week. Eighth wonder of the world. And they need like five times more and then you have to have more compute, and you have to, they’re in Las Vegas because it doesn’t have any, uh, water problems and no earthquake. And you go there and you realize, well there’s CoreWeave. And you wanna say, I wanna own shares of the CoreWeave deal. Because they are so integral to what everybody is doing. Particularly you know chat.”
“I was so skeptical. And the people I talked to, both on and off the record, if Joe Tsai were there, Joe Tsai would say, you know what, I gotta take that back. Let me take that back.”
Overall, BABA ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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