We recently published a list of Jim Cramer Discusses These 10 Stocks, The Fed Chair & Lower AI Costs. In this article, we are going to take a look at where General Motors Company (NYSE:GM) stands against other stocks that Jim Cramer discusses along with insights on The Fed Chair & Lower AI Costs.
In his appearance on CNBC’s Squawk on the Street aired before the day of the Federal Reserve’s latest interest rate environment, Jim Cramer shared how Federal Reserve Chairman Jerome Powell would have to fine-tune his remarks in line with President Trump’s sentiments about interest rates. The President made hard-hitting statements earlier this year when he stated that he would demand central banks worldwide reduce interest rates as oil prices were dropping.
Sharing his thoughts on the Fed chair, Cramer stated “Yeah, I think that, uh, Jerome Powell knows how to punt better than anyone I’ve ever seen. I mean, he’s, I just think he’s just not going to take the bait. I think he’s going to say listen we gotta see what happens.” Cramer stated that Powell would keep his options open because of the dynamic nature of today’s markets. After all, it was only last week that Wall Street’s favorite AI GPU stock was the most valuable company in the world. And now, it’s in third place.
Cramer outlined that “I think people are [inaudible] to recognize, that it’s not like we know everything. Things are so fluid.” He also linked the fluidity with investors’ urge to invest with President Trump’s every statement. “That first it’s the Iron Dome mention, I just talked about [the company that makes missiles for the Iron Dome], well [it] has this terrific drone killer system, which they’ve shot down a huge number of these.” Cramer added that while the President might want the “drone killer” as well, it doesn’t mean that the statement would mean to buy stock. He added “A lot of off-the-cuff comments, and you can’t react to all of them. So I think that Jay Powell would be best to say you know what, we have to wait and see.”
The Federal Reserve announced its latest interest rate decision today. As expected, the central bank kept rates unchanged, but the uncertainty in its statement meant that the flagship S&P index bled 0.8% while the broader NASDAQ index lost 1.1%. Investors were particularly spooked by the fact that the Fed’s latest comments didn’t include the usual inflation “has made progress” statement that had previously reassured them that progress on the inflationary front was occurring and could lead to future rate cuts. In other words, the door is now open for the central bank to raise rates further this year if need be, despite an adamant President who believes otherwise.
Cycling back to stocks, Cramer also commented on the AI GPU firm and its latest Blackwell GPUs. Blackwell GPUs are the backbone of future AI data centers, and in his previous shows, Cramer has also commented on their potential to play a role in the humanoid revolution (For more details about humanoids, you can check out $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley)
Commenting on Blackwell and DeepSeek’s purported lower training costs, Cramer shared:
“Well, look, there’s no doubt about the cost is great for this. But if you’re gonna go forward and you’re gonna do what Jensen was talking about, which is anything physical, anything physical with Blackwell. It’s going to be better than what we do. I’m just saying that Jensen’s on a plane of his own. And that, if you have low commodity, Jensen’s got the three thousand dollar chip that can handle that. Was I shocked by this? No it was nice that they came up with such a low price.”
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 January 28th.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
A group of technicians in a garage, inspecting car parts and ensuring safety compliance.
General Motors Company (NYSE:GM)
Number of Hedge Fund Holders In Q3 2024: 64
General Motors Company (NYSE:GM) is one of the largest car manufacturers in America. Despite rival Ford struggling due to high costs, the firm has managed to hedge the inflationary storm that hit the US car industry in 2024. General Motors Company (NYSE:GM)’s shares are up by 40.7% over the past twelve months as the firm experienced robust demand for its vehicles. However, the stock fell by 8.9% after the firm’s $3 billion net loss included $4 billion in restructuring charges. Investors were also wary about President Trump’s tariff plan and its impact on costs. Here’s what Cramer said:
“[On GM being down 9%] That’s ridiculous. Ridiculous, ridiculous.
“Were you shocked by the charges? I wasn’t shocked by the charges. . .who’s selling that?”
Overall, GM ranks 8th on our list of stocks that Jim Cramer discusses along with insights on The Fed Chair & Lower AI Costs. While we acknowledge the potential of GM 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 GM 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.