On Monday’s episode of Mad Money, host Jim Cramer discussed how some companies could gain significantly from artificial intelligence without pouring massive sums into capital expenditures.
“So far this earnings season, we’ve heard a lot about the AI data center boom, especially last week when we got results from five members of the Magnificent Seven. Despite all the hand-wringing from AI skeptics who insist that these companies are wasting their money, the fact is that spending on the data center hasn’t slowed down at all. In fact, it’s accelerated.”
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Cramer noted that the largest corporations in the world are stepping up AI-related investments and signaling plans to allocate even more next year. However, he noted that Wall Street’s patience with these enormous spending commitments is wearing thin. He also explained that while hyperscalers are pouring fortunes into building out data centers, there exists another group of companies that could still profit from AI growth without needing to commit such extreme amounts of money to infrastructure. He highlighted that, in the current environment, such companies might be the ones investors should pay attention to as they “may be the safest.”
“So here’s the bottom line: If Wall Street finally is balking at the big spending… [from] hyperscalers shelling out fortunes for data center build out, maybe you want to own a company that can profit from artificial intelligence without spending much at all.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on November 3. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 hedge funds.
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Jim Cramer Discussed 9 Stocks Related to the AI Space
9. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 59
Cloudflare, Inc. (NYSE:NET) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer highlighted the company’s solid earnings and its potential to “get more profitable,” as he commented:
“Finally, let me give you one more potential AI winner that doesn’t need to spend… more money to get there but has really been moving up a lot and that’s a company called Cloudflare, the cybersecurity company/content delivery network that looks to be like an enforcer for all the content publishers that are basically getting their data stolen by generative AI platforms. This past summer, Cloudflare announced that it was the first internet infrastructure provider to block AI crawlers from accessing content without permission.
In August, when we last had CEO Matthew Prince on the show, he sounded earnest about wanting to help smaller publishers that are getting ripped off by AI companies. He told me that as the world transitions from search engines to answer engines, these publishers are getting hosed because, unlike search engines, AI platforms don’t send them traffic. That’s why Cloudflare is helping their customers protect themselves from AI data scraping. Without that protection, they cannot get paid. Now, we don’t know how much Cloudflare could make from this business, but man, they reported one excellent set of numbers last week… It’s one of my favorite stocks. Throw in the anti-data scraping opportunity, and they’re only going to get more profitable.”
Cloudflare, Inc. (NYSE:NET) provides cloud services that improve the security, speed, and reliability of websites and applications. The company offers tools for protection, network management, and developer use.
8. The New York Times Company (NYSE:NYT)
Number of Hedge Fund Holders: 46
The New York Times Company (NYSE:NYT) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer highlighted the company’s deals and ongoing lawsuit during the episode. He said:
“Who else could make out like a bandit by licensing their data to the big AI platforms? Hey, how about The New York Times? That’s the paper of record, for heaven’s sake. The New York Times has already begun to make some of these deals as well. In May, they announced a multi-year licensing agreement with Amazon that would allow Amazon to use their articles to train up AI models. I don’t know how much they’re getting, but the Gray Lady doesn’t need to spend an extra cent to make that money.
They’re just licensing out what already exists, and they’re real smart, and I read their briefs. I like their case. Plus, the Times has this ongoing lawsuit against OpenAI, which they originally brought almost two years ago. If they win, then the company could be looking at a significant new revenue stream, not just from OpenAI but from every other AI platform that will be forced to pay up to train their models on the paper of record. I think they got a very strong case. That said, The New York Times reports on Wednesday. I have no idea how the quarter’s going to be, okay? Maybe buy it on weakness.”
The New York Times Company (NYSE:NYT) produces and distributes news and information through digital, print, and audio platforms.
7. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 74
Reddit, Inc. (NYSE:RDDT) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer noted that many AI companies rely on the company for data, as he stated:
“Who else can make a fortune from AI without much upfront investment? Here’s when you haven’t thought about it all, and it’s Reddit… Not only did Reddit put up nearly 70% revenue growth, their margins have soared. They had a 91% gross margin, 40% adjusted EBITDA margin. That’s very impressive for a company that was barely profitable when it came public; a lot of people felt it would never be profitable. There’s a reason the stock jumped 7.5% last Friday, though it did give back a bit of that today.
The other number that stood out to me… on Reddit’s report was the company’s capital expenditures figures came in at 2.1 million in the third quarter… See, Reddit’s partnering with the chatbots to license its data because that data is essential for training generative AI models. Keep that word in mind. Companies like OpenAI and Google already pay Reddit to license its data, and though this is still a relatively small portion of the business, I think it can grow very big over time. Why? Because many of the other generative AI companies are allegedly using Reddit’s data without paying them a dime… Keep in mind, most of these chatbots rely on Wikipedia and Reddit.”
Reddit, Inc. (NYSE:RDDT) runs an online platform that hosts communities where users connect over shared interests, exchange ideas, and share content such as posts, images, and videos.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer highlighted how the company does not need its own AI strategy but can instead utilize other companies for the purpose. He remarked:
“Apple’s looking better and better because they opted out. They’re not trying to build the best chatbot, though they are working on improvements to Siri that should arrive by next spring… But overall, as far as I can see, this strategy is to do the same thing they did with search. Why not just let somebody else build it and then pay Apple for the privilege of being the default on all their devices?
Google reportedly pays them $20 billion per year to be the go-to search engine, which we now know was held up in court as a payment that was totally legit. I bet they can even get more for that from one of the hyperscalers that wants to be the go-to generative AI platform. There’s not that much difference between them. It would really help if they had Apple. At times, over the past couple years, Apple’s come under fire for not really seeming to have an AI strategy.
But as I said repeatedly, they don’t need one because they have an installed base of over 2.35 billion active devices, and any of the hyperscalers would happily pay up for access to that user base. Still one more reason why I always say Apple, own it, don’t trade it. Doesn’t hurt that these guys reported a magnificent quarter. Yet the stock ultimately didn’t get much credit for it, but it did run up in advance of the report.”
Apple Inc. (NASDAQ:AAPL) sells smartphones, computers, tablets, wearables, and accessories, in addition to providing cloud, support, and subscription-based digital services.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer noted that a lot of AI spending by companies will go to the company, as he said:
“How do you play it? Okay, look, the most obvious answer is the same thing I’ve been saying for years. You just buy the stock of Nvidia. The lion’s share of the spending bonanza will go to hardware. Last week, Nvidia held a very bullish GTC event in Washington, DC, where CEO Jensen Huang said he has ‘visibility into a more than half a trillion dollars’ cumulative revenue from the company’s current AI chips.
That’s the next generation Vera Rubin chips and all the associated networking equipment. There’s a reason Nvidia shot up nearly 9% last week and rallied another 2% today, and that’s without any hope of Chinese sales, which were never in the numbers anyway… Obviously, these huge spending plans are great news for Nvidia and its fellow suppliers of data center equipment.”
NVIDIA Corporation (NASDAQ:NVDA) develops computing technologies that power graphics, artificial intelligence, autonomous vehicles, and networking solutions.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer discussed the company’s spending in the space, as he said:
“Finally, Amazon raised its full-year CapEx guidance for 2025 from 118 billion all the way up to 125 billion, and CFO Brian Olsavsky said, told us, listen, the amount is going to increase next year too. So even though only Meta stock sold off hard on heightened AI spending, the truth is everybody’s doing it at this point… I think Amazon and Alphabet both did a much better job of explaining why they need to shell out all that money. For example, during Amazon’s conference call, CEO Andy Jassy laid it out for you. Listen to this quote. ‘You’re going to see us continue to be very aggressive in investing in capacity because we see the demand. As fast as we’re adding capacity right now, we’re monetizing it.’
Hey, that makes it feel like they’re, they aren’t just spending a few extra billion purely for the sake of lighting their money on fire. Then again, a cynic might argue that Amazon and Alphabet got away with their higher capital spending plans because they simply didn’t go into as much detail as Meta and Microsoft did. I’m not buying that. I mean, the latter laid out numbers for next year’s CapEx while Amazon and Alphabet really said they’d be spending more. But I love what the, the fact that they have the demand. That’s all I care about.”
Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer mentioned the company during the episode and commented:
“Meanwhile, Microsoft shelled out nearly $35 billion capital expenditure last quarter alone, last quarter, not year, much higher than the $30 billion plus number they guided for in July. On Microsoft’s conference call, CFO Amy Hood said that they’re ramping up spending on graphics processing units or GPUs, the kind of chips that Nvidia makes.
Hood explained that ‘total spend will increase sequentially, and we now expect the fiscal 2026 growth rate to be higher than fiscal 2025.’ Three months ago, Microsoft had indicated that their capital expenditure growth might moderate in the 2026 fiscal year, which has already begun, but that’s clearly no longer the case.”
Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer mentioned the increase in the company’s capex, as he said:
“On the other hand, Alphabet also raised its 2025 capital expenditures forecast from 85 billion all the way up to 91 to $93 billion range, much bigger increase than we saw from Meta. Yet Alphabet stock did not get punished. Why? Wall Street seems more willing to give them the benefit of the doubt, even though CFO Anat Ashkenazi said that the company expects ‘a significant increase in CapEx next year.’ People just said fine…
Of course, Amazon and Alphabet both rallied more than 8% last week despite raising their capital expenditure guidance for the current year. So clearly, Wall Street hasn’t completely turned against heightened AI spending. What’s the difference here? Simple. I think Amazon and Alphabet both did a much better job of explaining why they need to shell out all that money.”
Alphabet Inc. (NASDAQ:GOOGL) provides technology products and services, including Google Search, YouTube, Android, and Google Cloud. The company’s solutions include digital advertising, cloud computing, AI solutions, and subscription-based consumer platforms.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer noted the stock’s decline after the company reported its earnings and discussed its AI plans. He stated:
“Let’s start with Meta Platforms. Last week, Meta’s stock got pulverized after the company reported a very strong quarter, mainly because they raised their capital expenditures forecast dramatically. Previously, these guys played a shell at 66 to $72 billion on CapEx this year. Now, they say it’s going to be 70 to 72 billion. More importantly, on the conference call, CFO Susan Li, very straight shooter, said our current expectation is that CapEx dollar growth will be notably larger in 2026 than 2025, people were shocked at that, while total expenses will grow at a ‘significantly faster percentage rate’ next year, mostly due to incremental cloud expenses and higher compensation costs because they’re trying to poach a lot of top talent in AI.
And that’s why Meta stock got crushed and continues to get hit… Meta was harshly punished for this CapEx forecast, with its stock plunging 12% last week. Now, I think they got singled out because these numbers are giving investors flashbacks to CEO Mark Zuckerberg’s expensive Metaverse dalliance just a few years ago. That was before we got… cost controls in 2023. Now, look, I think it’s possible that Zuckerberg rolled out that number to show what he’s willing to spend to prevent OpenAI from competing with him on his social turf.”
Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company’s portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and products in virtual and augmented reality.
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