On Friday, Jim Cramer, host of Mad Money, revisited the recent turbulence in artificial intelligence stocks, three months after the emergence of DeepSeek, a Chinese AI firm that initially rattled markets. He noted that despite the broad pullback in the sector, many of the fears triggered by DeepSeek’s debut have not materialized, which has led to a reconsideration of the panic that followed.
“Three months ago, January 23rd is a day that will live in artificial intelligence infamy. That’s when we learned that a Chinese firm called DeepSeek had figured out a way to train high quality generative AI models using far less hardware. They claim their hardware costs were around $6 million versus 80 to $100 million for their enormous American competitors.”
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The announcement sent shockwaves through the market. Cramer recalled how NVIDIA saw its stock fall sharply over just two trading sessions. The market reaction spread quickly beyond and hit other companies tied to data center infrastructure, which eventually pulled down the broader Nasdaq. However, Cramer noted that the company then revealed plans to build $500 billion worth of AI infrastructure in the United States over the next four years.
Cramer noted that initially, it seemed to signal a renewed sense of stability. But soon after, the administration imposed a ban on selling AI chips to China, which forced the GPU kingpin to write down $5.5 billion tied to that entire initiative. Even so, Cramer emphasized that the company’s core business remained strong.
“We understand that they’re basically sold out for the year, even as they can only sell their best stuff in the United States and the 18 friendly countries.”
Cramer attributed the export restrictions to a policy from former President Biden, one that President Trump has not reversed. Despite the geopolitical constraints, Cramer stressed that demand for the company’s technology is still overwhelming. He argued that the stock never should have experienced such a steep drop in the first place. He added:
“Even with the trade war, the AI infrastructure theme seems totally back on track. In fact, it never left the track to begin with.”
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 April 25. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 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 These 8 Stocks Recently
8. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 28
Mentioning the CEO change and lawsuits, a caller asked if they should buy more or just hold BHP Group Limited (NYSE:BHP). Cramer replied:
“I like BHP, Broken Hill. I remember it was Broken Hill Proprietary. That’s how old I am. Holy cow. But I like the story. I like the yield. I think you got a good situation going there.”
BHP (NYSE:BHP) is a global resources company involved in mining a variety of metals and minerals, including copper, iron ore, coal, and nickel. It also offers services like freight, marketing, and finance.
BHP (NYSE:BHP) reported record copper production of 1.5 million tonnes for the nine months ending 31 March 2025, driven by a 20% increase at Escondida and strong output from all other operated copper assets. The company revised its growth schedule at Escondida, including extending the Los Colorados concentrator’s life beyond FY29. The company expects the updates to add around 400,000 tonnes of additional copper and support annual production guidance of 900,000 to 1 million tonnes through FY31.
7. Mattel, Inc. (NASDAQ:MAT)
Number of Hedge Fund Holders: 30
When a caller asked Cramer about Mattel, Inc. (NASDAQ:MAT), he said:
“Well, okay, you know I like Mattel. I have them on, but I also have Hasbro on, and right now, Hasbro is in the lead. They’ve got this card game that’s really good. If you want to know, I’m not kidding, I’m not kidding about what I’m about to say, if you want to compare Hasbro to Mattel, I want you to go to Grok. I’m not kidding, go to Grok because before I came out here tonight, I said, all right, why is Hasbro doing so well? I read the research. The best thing, the best way to find out, you just had to go to Grok. Can you believe it, how good some of these sites are getting? It’s amazing.”
Mattel (NASDAQ:MAT) creates and sells a wide range of toys, games, and entertainment products for children and collectors. Its portfolio includes well-known brands across dolls, vehicles, preschool items, and licensed franchises.
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