Jim Cramer, the host of Mad Money, said Wednesday that he remains confident many software companies can withstand the threat posed by artificial intelligence.
Wall Street can overreact better than anyone. Earlier this week, an outfit called Citrini Research put out a paper titled the “2028 Global Intelligence Crisis” that presented our country as a vast wasteland of white-collar unemployables thrown out of pretty much anywhere they previously worked because of what we talk about all the time, AI. This piece of science fiction caused a huge downturn in the market, although we’ve now spent the last couple of days bouncing right back.
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Cramer admitted that he does have concerns about most enterprise software companies, as he noted that bearish investors have targeted the group on fears that some may struggle to reinvent operations quickly enough. However, he made clear that his concern is not about extinction. He said he does not see Anthropic or any other major AI firm eliminating these businesses altogether. Instead, he added that some may simply earn less than they once did, which helps explain why price-to-earnings multiples across the sector have continued to compress.
Here’s the bottom line to all you naysayers: Tonight, NVIDIA reported a picture-perfect quarter. It shows me that AI is alive and well, and actually making a ton of money for more than just NVIDIA. Oh, we’re going to have speed bumps. We’re going to be fooled periodically. But let me tell you something, my optimism… it has put me on the right side of 49,000 Dow points since I first walked down this Street. And I gotta tell you, I’m not changing sides anytime soon.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 25. We listed the stocks in the order that Cramer mentioned them.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Discussed These 16 Stocks Recently
16. Diageo plc (NYSE:DEO)
Diageo plc (NYSE:DEO) is one of the stocks Jim Cramer Recently Discussed. Cramer highlighted the company’s “horrible” results, as he said:
Last night, Diageo reported. The results were so horrible that they had to cut the dividend in half. I always thought the dividend was sacrosanct. The stock of this king of all alcohol fell 15%, one session. As is so often the case, when you get this sort of decline, management… they’re hopeful they can stem the decline. We want that optimism, but they always seem to underestimate the changes in the marketplace. They did list some of the causes of the decline: the consumers feeling the pinch, younger people are drinking less, the GLP-1 drugs eliminate your craving for alcohol, and there’s legal competition from cannabis in half the country. But then these guys dismiss those problems as having a kind of a relative, maybe even transient impact. That’s wrong. They admit that the economic pressure has meaningfully impacted disposable income despite the sanguine tone of our president last night…
Now, some of Diageo’s weaknesses seem self-inflicted. The astounding drop off in the agave spirit… had to be extra painful. Agave has been one of the bright spots for the company, but Diageo’s agave sales fell 23%, a stunning 30.9% decline in Casamigos, 20.9 fall in Don Julio. These are fantastic brands. I think they’ve been hurt by a lawsuit filed in the Eastern District of New York by a trio of relative unknowns, including Sushi Tokyo, alleging that while these two brands claim to be 100% agave, they have non-agave elements in them. I never thought this lawsuit would ever hurt these brands so hard. But it’s definitely weighing on these two Diageo properties that had been stars.
Diageo plc (NYSE:DEO) produces and sells a wide range of alcoholic beverages, including beer, whisky, vodka, gin, and rum.
15. Applied Digital Corporation (NASDAQ:APLD)
Applied Digital Corporation (NASDAQ:APLD) is one of the stocks Jim Cramer Recently Discussed. When a caller sought Cramer’s thoughts on the stock, he said:
I think Applied Digital’s going to have a breakout quarter, and therefore, you should own the stock. I know it seems like it’s expensive because it has generated a lot of losses. I think those are going to come to a conclusion very, very soon.
Applied Digital Corporation (NASDAQ:APLD) designs, builds, and operates data centers that support high-performance computing and AI workloads. Cramer discussed the company during the January 20 episode and commented:
Next, there’s a whole new class of companies that’s caught fire over the past year, cryptocurrency miners that are converting their racks full of servers into data centers for AI. Now, this all started with CoreWeave. I don’t know if you saw Michael Intrator… CoreWeave’s successful IPO last March really caught everybody by surprise. Then, we saw Nebius join the fray. Those stocks were up 33% and 19%, respectively, by the way, just in 2026. But some of the even newer converted crypto miners are up more than 40%, like IREN, Applied Digital, Riot Platforms. These moves are insane. I need you to take profits before they’re cut in half… We saw the same carnage in the crypto miners turned AI data center plays. IREN, Applied Digital, Riot Platforms, each fell somewhere between 50% to 57% from peak to trough. That is dangerous.
