On Monday’s episode of Mad Money, host Jim Cramer analyzed the market’s bounce back from the prior week and discussed strong performances from the Magnificent Seven.
“At the heart of the market’s resilience as well, what do we think, the Magnificent Seven. Yeah, I know, I know, after all this, they’re still the winners. You know what, we gotta define winners right here. I like to look at growth. You know, I think growth is the most important determiner of higher stock prices. I make that point endlessly here.”
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Looking at the Magnificent Seven as a group, with six of the seven companies having already reported their quarterly results, Cramer highlighted that their earnings are projected to grow by 27.2% this quarter. He contrasted this with the rest of the S&P 500, excluding these seven, which is forecasted to post earnings growth of just 7.5% and noted, “That’s almost 20 percentage points difference, 20, 20.”
Turning to revenue growth, Cramer pointed out that the Magnificent Seven are expected to deliver sales growth of 15.5%, while the remaining 493 companies in the S&P 500 are estimated to see growth of only 4.5%. He said that an 11-point difference is remarkable in statistical terms.
“You rarely ever see any one group of anything beat the S&P 500 so convincingly. How did they do it? Well, if you conclude that the rest of the S&P is just a bunch of losers, something that’s not really true, but it does have a lot of losers in it. The other way is to look at the mostly magnificent quarters we’ve seen from the seven themselves.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on August 4. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
Jim Cramer Commented on Magnificent Seven Stocks
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the Magnificent Seven stocks Jim Cramer commented on. Cramer believes the company is the real winner among hyperscalers, as he remarked:
“Finally, there is NVIDIA. We don’t know how it’s doing. It reports on a different cycle, with its next report coming later this month. But we do know this: When you hear that Amazon’s not doing well enough because it didn’t order enough chips from NVIDIA, like all the other hyperscalers, well, guess who’s really the winner? NVIDIA.”
NVIDIA (NASDAQ:NVDA) provides advanced computing, graphics, and networking solutions for gaming, AI, data centers, and automotive applications. The company’s products include GeForce GPUs, AI platforms, autonomous vehicle systems, and enterprise tools. During the July 9 episode, Cramer advised, “own it, don’t trade it” about the company stock. He said:
“NVIDIA, own it, don’t trade it. That’s been my advice for about $3.7 trillion in market capitalization. Today. NVIDIA became the first $4 trillion company, and it’s hard not to celebrate the success of this business or the man behind it… Now let’s talk about this $4 trillion achievement. Let’s put it in perspective. In the last 25 years, only four companies have earned the title of the biggest public company in America: Microsoft, General Electric, Exxon Mobil, and Apple.
GE wore the crown twice, Microsoft, five times, Exxon Mobil seven, and Apple an astounding 11 times, hallowed ground. Of course, GE imploded not long after, too much leverage. ExxonMobil, oil prices shot up, and Exxon was the biggest company in the industry at that time. But the two that still rival NVIDIA, Microsoft, and Apple… But I don’t see it (Apple) taking that crown back from NVIDIA anytime soon… The fact is, neither Microsoft nor Apple can claim that they’re currently creating a new industrial revolution, like NVIDIA can… Bottom line: NVIDIA, own it, don’t trade it. Oh, and see you at $5 trillion.”
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the Magnificent Seven stocks Jim Cramer commented on. While Cramer does not like the company’s car business, he believes that its tech business is “fantastic.” He commented:
“Tesla, as a car company, it’s a mess. As a tech company, it’s fantastic, especially now that the CEO is being compensated correctly with that $30 billion worth of shares, mazel tov. I’m convinced that Tesla’s worth owning for its autonomous driving and robots. But I accept that the rest of the company’s balanced right now.”
Tesla (NASDAQ:TSLA) develops and sells electric vehicles, solar energy systems, and battery storage products, along with services like charging, insurance, financing, and repairs. The company also provides energy solutions through sales, leasing, and installation for residential and commercial use. Cramer mentioned the company during the July 7 episode and said:
“When the only stock that’s down enough to create a real price break is Tesla, largely because Elon Musk’s trying to get back into politics instead of humanoids, it’s tough to pull the trigger.”
5. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Magnificent Seven stocks Jim Cramer commented on. Cramer noted that the stock keeps declining because of the belief that AWS’s growth is slowing. He said:
“Fifth, Amazon. Well, Amazon shouldn’t be troubled. It had a terrific quarter, including fantastic retail sales, stunning advertising revenues, decent numbers from Amazon Web Services, AWS. The reason the stock got hit and keeps getting hit is there’s a perception, Amazon Web Services’ growth is slowing. It was flat from the previous quarter, and that’s being viewed as a real weakness.
I’m hearing that Amazon may be market share donor to Microsoft and Alphabet in cloud computing, and they might stay that way until they stop trying to make do with their own chips and instead buy more, yes, of the ones from NVIDIA. I’m not sure this is a totally true narrative because I think AWS did fine. But I do hear about the resistance from young AI developers who are reluctant to use Amazon’s platform to develop their own products. I hope management comes on right here and explains more about this issue. Otherwise, I fear that this is an important position for my Charitable Trust is going to keep getting smoked. Help us, Amazon. I know, I’m greedy.”
Amazon (NASDAQ:AMZN) provides retail, subscription, and advertising services, along with devices like Kindle, Echo, and Fire TV. Additionally, the company offers cloud computing through AWS and supports third-party sellers and content creators across its platforms.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the Magnificent Seven stocks Jim Cramer commented on. Cramer shared a quite positive sentiment around the company and said:
“Next, Apple had a tremendous report, better growth than anyone expected. Those who were worried about a slowdown, the service revenue stream got their heads handed to them. Cash continues to build. After speaking to Tim Cook before the quarterly report, I got the impression that some good things were coming for AI and the perceived weakness.
Tariffs, oh, right now, Apple’s moved production for most US-bound iPhones to India. But if the tariffs on India really go through the roof because of buying Russian oil, they’ll just switch back to China. I’m not concerned. That’s right. I’m not concerned. They have the money to do a major acquisition in either or both financial and AI verticals, and I think they’re going to do it.”
Apple (NASDAQ:AAPL) designs and sells devices like iPhone, Mac, iPad, Apple Watch, and AirPods, along with software, cloud services, and the App Store. Moreover, the company offers subscription services including Apple Music, Apple TV+, Apple Pay, and AppleCare.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the Magnificent Seven stocks Jim Cramer commented on. During the episode, Cramer noted that all divisions of the company put up good numbers, as he said:
“Third, Alphabet. Google Search and YouTube are doing amazingly well. You know what, I thought that Gemini, their AI platform, would cannibalize regular Google. Wrong. It hasn’t. Instead, they’re complementary. Business is very, very strong. And Alphabet had a remarkable quarter for all divisions, including Waymo… which is building a nice lead over the rest of the autonomous vehicles in the space. They, Microsoft, Meta are buying a gigantic number of NVIDIA chips and that’s who wins.”
Alphabet (NASDAQ:GOOGL) provides digital products and platforms, including Search, YouTube, Android, Google Cloud, and Google Workspace. The company also invests in emerging technologies and has significant operations in toward development of AI. Cramer discussed the company’s earnings in a July episode. He commented:
“Let’s talk about Alphabet, parent of Google. That was the star of the after-hours show, beating sales and earnings estimates and delivering strong numbers in the cloud, AI, even in Search, where there were concerns that Gemini, their AI bot, might be cannibalizing that incredibly valuable franchise. Gemini, turns out, has 450 million monthly average users. That’s fantastic. One of the big reasons why the stock exploded during the conference call…
All parts of the data centers are strong. We know that even from tonight, with the numbers from Alphabet, which is putting in a lot more CapEx than anyone thought they would… You know what? People are going nuts for Alphabet today, and that’s going to spill over tomorrow. That stock’s been a horse.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Magnificent Seven stocks Jim Cramer commented on. Cramer showed that he was quite impressed with the company’s earnings. He remarked:
“Next best, Meta Platforms. I’m agog at the numbers that Mark Zuckerberg’s putting up. The most important one, not even talked about on Wall Street enough, 3.5 billion people use at least one Meta product each day. Come on, that’s almost half the planet. That’s insane. The company’s printing money, which is why it can go into the equivalent of free agency and hire incredible talent. It doesn’t even matter. You can’t even see it in the margins.
You know that if you advertise with Meta, the ads have more reach than anyone. They’ll even design the ad for you, and it will most likely outperform any agency-built ad, although they don’t knock the agencies in the conference call. Meta even has businesses it hasn’t even begun to monetize, because I think it’s so busy monetizing others. Who even knows… how much WhatsApp is worth. Mark talks about the Ray-Ban glasses as the best format for pretty much everything, Facebook, Instagram, WhatsApp, and everything else that they have, including AI.
… I gave everybody a pair… I think that these things are so darn cool, and they, you know what? I never thought they could move the needle, but after this conference call, now, I’m not so sure. They could be real profits here for this company. Like Microsoft, Meta is buying a huge number of NVIDIA chips for its AI offering, Meta AI. I don’t use it much, but you know what, after the conference call, I’ll probably add it to the roster.”
Meta (NASDAQ:META) provides social and messaging apps like Facebook, Instagram, WhatsApp, Messenger, and Threads to help people connect and communicate. Additionally, the company develops virtual, augmented, and mixed reality technologies through its Reality Labs division.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the Magnificent Seven stocks Jim Cramer commented on. During the episode, Cramer said that the company has “become completely sainted,” as he commented:
“So let’s do this. Let’s go over from best and not best because I refuse to call any of these the worst. I want to start with Microsoft because this one has become completely sainted. Microsoft’s doing incredibly well in every single phase of its business. The basic enterprise software product is the strongest I’ve seen it since, almost since it started. It’s aided by rapid adoption of Copilot, Microsoft’s AI product.
LinkedIn’s just doing really strongly. Their video game’s selling spectacularly. Azure, the cloud infrastructure division, is outstanding with a huge acceleration in growth this quarter. Finally, Microsoft owns a giant slug of OpenAI and its usually valuable ChatGPT fundraising round at a $300 billion valuation. Microsoft owns 49% of the for-profit portion of the company. I’ve followed this company for a long time since it came public, even before then. There’s always been one thing, one fly… only one piece of hair on it. Uh-uh, this time the quarter was flawless, yes, flawless.”
Microsoft (NASDAQ:MSFT) delivers software, cloud platforms, enterprise tools, operating systems, consumer services, and gaming solutions. Some of the company’s major products include Windows, Azure, Microsoft 365, LinkedIn, GitHub, Xbox, and Copilot.
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