Jim Cramer, the host of Mad Money, said on Friday that the market seems to be rewarding one thing above all else right now: scarcity.
This market’s being driven by shortages. If your product’s in short supply, your stock goes higher. It’s knee-jerk. You may disagree with it, but Wall Street doesn’t care about your opinion. We’ve witnessed endless buying in the memory and storage stocks in the last year. Think Micron, Seagate, Western Digital, and Sandisk. That strength has extended to the semiconductor capital equipment makers like Applied Materials, Lam Research, and KLA. These groups got hit today off the pin action from Intel’s disappointment, but I think that’s mistaken pin action.
READ ALSO: Jim Cramer Shared His Weekly Game Plan: 22 Stocks in Focus and Jim Cramer Shared His Takes on These 16 Stocks.
Cramer also highlighted what he called a massive shortage in commercial aircraft, which he said is driving Boeing’s comeback. He explained that the surge in travel has translated into a steady flow of new aircraft orders for Boeing because only two companies in the world can produce large commercial planes at scale. He said that it helps explain why Boeing’s stock recently moved past the level where it was trading before the Alaska Airlines accident two years ago. He added that an aircraft shortage supports buying Boeing.
All that said, if your stock’s been rallying as a shortage play, this market will turn against you in a heartbeat if you somehow managed to drop the ball… The CEOs of the best gold companies have always told me that one day, we’d all learned that crypto simply doesn’t hold its value as an inflation hedge. Only gold could. I like crypto, but I think that the gold miners are turning out to be perhaps right. Crypto turns out to not be a great inflation hedge. The moves we’ve seen in the last year show you that crypto seems to lack something that gold and silver have, and I think it’s the shortage factor. There’s just not enough being made. My advice: Own gold, don’t trade it.
Our Methodology
For this article, we compiled a list of 19 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 23. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Discussed These 19 Stocks and Market Shortages
19. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 57
Agnico Eagle Mines Limited (NYSE:AEM) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer mentioned the stock while discussing shortages in precious metals. He commented:
Unfortunately, it’s not just tech. We’ve got some real shortages in metals. Gold, silver, and copper are climbing relentlessly. The world has a lot of copper, so even though it’s used in the data center, I’d be circumspect about chasing it. But man, silver’s up 46% since the beginning of the year, and gold’s up 15%. Now, a lot of that’s because the dollar’s weak. It’s a store… of value, but we do have a permanent shortage in gold, not in silver, but in gold. Each year, we only replace about 1% of the world’s holdings between all the geopolitical uncertainty and the weakness of the dollar. There’s huge demand here. I would buy Agnico Eagle if I wanted to participate in it because they’re the best miner.
Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company that explores for and produces precious metals, including gold, silver, zinc, and copper.
18. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer highlighted the stock’s constant decline for the past few weeks, as he said:
Now, last night I told you that the Intel breakage would reverse the huge flow of money out of Magnificent Seven into the storage plays, and to some extent, that happened. The money flowed out of the storage plays right into the Mag Seven… These are all jumping because the money flew back from storage into Mag Seven. It just goes back and forth and back and forth, and it doesn’t impact them all. Apple saw its stock fall for the eighth week in a row because anyone who makes phones or computers is a victim of the memory shortage. They have to buy a lot of these sky-high storage devices. People say sell Apple off it. I’m not, I’m not a believer, but I recognize that’s what’s happening.
Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.
17. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks Jim Cramer discussed, along with market shortages. Discussing the effect of Intel’s inability to predict the CPU shortage on the company, Cramer said:
Of course, that’s great news for the main competitor, AMD, which rallied nicely today because they did factor in the shortage. We wish we had not sold AMD for the Charitable Trust, but that’s would have, should have, could have.
Advanced Micro Devices, Inc. (NASDAQ:AMD) makes processors, graphics cards, and AI chips for computers, servers, and gaming systems. The company’s products include Ryzen, Radeon, and EPYC. Alpha Wealth Insiders Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its third quarter 2025 investor letter:
Business: Advanced Micro Devices, Inc. (NASDAQ:AMD) is a prominent global semiconductor company that designs and develops a wide range of high-performance computing and visualization products. Under the leadership of CEO Lisa Su, AMD has transformed into a strong competitor in various segments, particularly in the booming AI and data center markets
Insider Buying/Selling: Phillip Guido, EVP and Chief Commercial Officer purchased 8800 shares at $113.56 in May. Since then there have been significant insider sales as the stock has risen dramatically. Guido has not sold stock as he would also be subject to short swing profit taking.
Recent News:In Q2 2025, AMD posted record revenue of ~$7.7B (+32% YoY) with net income of $872M, but a GAAP operating loss of $134M due to a $800M MI308 inventory write-down tied to U.S. export controls. (Advanced Micro Devices, Inc.) Since then, AMD agreed to sell ZT Systems’ server manufacturing arm for $3B to Sanmina (Reuters), and is reportedly in early talks with Intel to use its foundry services (Reuters). Also, AMD is developing Fluid Motion Frames 3 in upcoming GPU driver updates. (tomshardware.com) …(Click here to read the full text)
16. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 81
Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer discussed the company’s post-earnings stock price decline, as he remarked:
Last night, Intel reported a decent enough quarter but offered distinctly suboptimal guidance for the current quarter, which it said was totally because of the CPU shortage. Remember, anything that goes into a PC or server is in short supply, thanks to the data center boom. So Intel can’t make enough CPUs to truly profit from the shortage. They planned wrong. They were caught unawares. It happens, but that’s why the stock got obliterated today, down 17%.
They didn’t factor in the storage correctly. There was just too much shortage, just way more than they thought… Intel’s slide was so bad that it dragged down the memory chip makers. Pure guilt by association, but that’s ridiculous. Intel doesn’t have a problem with demand. They said we can’t produce enough supply. The industry’s in great shape. This is just one company with lackluster execution and no more than that. I think Intel’s still a great company. It’s come back under Lip-Bu Tan. I think it’s going to take advantage of the CPU shortage, and I do believe that Lip-Bu can fix what’s ailing the company. It was a very broken company when he came in.
Intel Corporation (NASDAQ:INTC) designs and manufactures processors, chips, memory, and related hardware. Additionally, it provides software, optimization solutions, and AI-enabled platforms.
15. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 62
Celestica Inc. (NYSE:CLS) is one of the stocks Jim Cramer discussed, along with market shortages. When a caller expressed worry upon hearing that Google might be backing out of its relationship with the company, Cramer remarked:
Yeah, I saw that too and was thinking, boy, Celestica is really too high if that happens. Why don’t you trim some on Monday? I don’t know what’s going to happen, but the stock has made a big run. You’ll certainly feel better about it if you take that action.
Celestica Inc. (NYSE:CLS) provides end-to-end supply chain and manufacturing solutions, including design, production, testing, logistics, and after-market services. In addition, it delivers hardware and software platform solutions for clients across technology, aerospace, industrial, healthcare, and business sectors. A caller asked about the stock during the episode aired on November 13, 2025. The Mad Money host responded:
You know what? I thought that the Celestica decline was, I thought it was almost like a targeted decline. I did not see anything specifically that merited why it went down like this… But I do think that when you see a stock that falls as much today, you get another down day tomorrow until we find out what’s going on. But Celestica is a really good company. Someone targeted that company today.
14. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 37
Arm Holdings plc (NASDAQ:ARM) is one of the stocks Jim Cramer discussed, along with market shortages. A caller inquired about Cramer’s thoughts on buying more ARM shares, and he replied:
Okay, Arm’s very interesting here because they did see the big shortage coming. Rene Haas got it right. I think you do buy the stock, and I think it’s a great call.
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. During the January 15 episode, a caller asked if they should sell, add more, or hold on to their position in the stock. Cramer replied:
You know, I gotta tell you, something’s going on. I mean, we gotta get Rene Haas on. I mean, the stock has just been in freefall, and that’s not right. Maybe it’s because the price-to-earnings multiple got too high. I would hold it. I can’t tell you to add any until we find out definitively that… [if] SoftBank’s selling its stake or something because man, this thing’s been nasty.
13. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 99
Nu Holdings Ltd. (NYSE:NU) is one of the stocks Jim Cramer discussed, along with market shortages. Starting the lightning round, Cramer answered a caller’s query about the company as he said:
I think, look, I liked NU from when it came public. I think it’s okay. It’s a little to me, I don’t know, I don’t like a bank that has that big a price-to-earnings multiple, even if they are a very forward-looking bank. And by the way, if you want an international bank, let’s not forget it’s Santander.
Nu Holdings Ltd. (NYSE:NU) operates a digital banking platform that covers several financial needs like credit cards, personal and business accounts, and investment options. A caller asked about the stock during the January 24, 2025, episode, and Cramer replied:
You know this is a FinTech company, and it’s a really hard company… It’s very expensive. I actually would prefer I, I prefer SoFi, which reports on Monday morning.
It is worth noting that since the above comment was aired, the company’s stock has gained over 46%.
12. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 70
Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer discussed, along with market shortages. Noting that the stock seems “richly valued,” a club member asked how much it needs to fall to start a position. In response, Cramer said:
There are a lot of people who feel that this is a data center play and that the data centers are somehow going to stall out. You are coming in after a major, major move. I would like to see the stock lower. Once you start getting lower, what happens is people say, oh, oh, it’s going to be topped. It’s a head and shoulders, all that. I liked it when Jim Umpleby was CEO. He did a fantastic job. I believe it’s worth a great deal, but I do prefer, right here, Cummins, CMI. I think it represents a better buy.
Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working. During the December 10, 2025, episode, Cramer mentioned the stock and commented:
Finally… You can buy any industrial because the hedge fund playbook says that industrials benefit from lower rates, even if you think it doesn’t matter. The fabulous irony of all this, frankly, is that Powell, in his own press conference, actually came out and said that a quarter point really doesn’t mean that much to any industry. I had to laugh at that one, but that’s not how hedge funds or even mutual funds think about it. They’ll eagerly buy Caterpillar and Cummins, two stocks at their all-time highs, just because they perfectly fit the environment.
11. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is one of the stocks Jim Cramer discussed, along with market shortages. Noting that defense contractor companies are good long-term investments and offer “reasonable dividends,” a club member asked for a recommendation. Cramer replied:
You’re right. I like… AeroVironment. I like Lockheed Martin. I’ve always been confused about whether to get into what I guard as the hornet’s nest of the president saying that they can’t buy back stock or they can’t pay dividends. Too hard for me. But those are the two that I think still work… [AVAV] I’ve liked since 78. Lockheed Martin, I’ve liked since James Taiclet came there from American Tower.
Lockheed Martin Corporation (NYSE:LMT) designs and maintains aircraft, missile systems, and helicopters for government and military use. The company also produces satellites, naval vessels, and cybersecurity tools. When a caller asked about the stock during the July 24, 2025, episode, Cramer responded that he is “sticking by it.” The Mad Money host stated:
Look, I know Jim Taiclet. I know he is going to figure this out, but everybody tells me, every single research note told me that you have to buy Northrop Grumman… when it comes to the weapon, the big defense procurement. And I still like AeroVironment, AVAV, I mean, it was AVAV… he broke the story, Nawabi broke the story about why things were so great there, and that stock is up about 90 points since he came on the show, and I’m sticking by it.
It is important to note that since the above comments were aired, Lockheed Martin Corporation’s (NYSE:LMT) stock is up over 40%.
10. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 53
NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the stocks Jim Cramer discussed, along with market shortages. When a caller called chips and related stocks cyclical, Cramer commented:
They are not cyclical. There are particular ones. NXPI is cyclical. On Semi’s cyclical. Texas Instruments is cyclical. Most of the others are not cyclical. Most of them are secular. Those big three are the three that I would say you can’t possibly buy because you have to buy them and then sell them, and I don’t like that.
NXP Semiconductors N.V. (NASDAQ:NXPI) produces microcontrollers, processors, and wireless connectivity tools, in addition to some environmental and inertial sensors. Parnassus Investments stated the following regarding NXP Semiconductors N.V. (NASDAQ:NXPI) in its third quarter 2025 investor letter:
We added NXP Semiconductors N.V. (NASDAQ:NXPI), a leader in analog and embedded semiconductors with more than half of its revenue tied to autos and a strong position in industrial end markets. We believe NXP is well positioned to benefit from rising semiconductor content per vehicle and the growth of industrial automation, supported by its robust design pipeline and customer relationships. NXP Semiconductors is an innovative global leader in security, processing and sensing technologies for automotive, industrial, mobile and internet-connected products. Its moat is supported by switching costs created by long design cycles and deep customer integration. The company’s high level of customization has enabled it to expand its margins.
9. AutoZone, Inc. (NYSE:AZO)
Number of Hedge Fund Holders: 60
AutoZone, Inc. (NYSE:AZO) is one of the stocks Jim Cramer discussed, along with market shortages. A club member inquired whether the stock is a buy, sell, or hold, and here’s what Cramer had to say in response:
Alright, this one mystifies me. I have been a believer in this stock for some time. They have the best buyback. Take a look. They’ve shrunk the float by 50% just in the last few years. There’s nothing, I thought, at first, I thought it was tariffed parts that could be a problem, tariffed parts. But at this point, I just don’t see a lot of downside. Yeah, I mean, we just had this nice pick up, but I think this is where you can get back in. It has been a mystery because I’ve been recommending the stock for more than 10 years.
AutoZone, Inc. (NYSE:AZO) sells and distributes automotive replacement parts, maintenance items, and accessories for cars, SUVs, vans, and light trucks. Cramer was asked about the stock during the January 14 episode, and he replied:
Yeah, people didn’t like that last quarter… And the reason why the stock is going down is this company is so darn consistent that when it reported an inconsistent number, I can’t believe the jailbreak. I think they’re fine. I think the next quarter is going to be better. This company always pivots and always pivots well. I’d be a buyer.
8. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 76
Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer discussed, along with market shortages. When a club member asked which type of business would “benefit from AI advancements beyond the producers of chips and energy and infrastructure,” Cramer replied:
I’m thinking of businesses that implement the technology to enhance their efficiency. That’s going to be the banks. The banks don’t talk much about it. The one that I think has the best handle on it is Wells Fargo. It’s a big reason why we own it for our Charitable Trust. WFC is the stock for you.
Wells Fargo & Company (NYSE:WFC) provides financial services, including banking, lending, investment, and wealth management solutions. Cramer mentioned the stock during the January 14 episode and remarked:
What about today’s reports from the other three bigs? Okay, Wells Fargo, which we own for the Charitable Trust, reported a top and bottom-line miss. While sales were up 4.5% year-over-year, and earnings grew by 13%, they still came in light, as did net interest income. It was disappointing. That said, a big chunk of that earnings shortfall came from higher severance expense… Wells Fargo, by the way, laid off a lot of people to cut costs. When you drill down, the business is doing pretty well, just not quite as well as Wall Street, and I were hoping… Efficiency ratio, a key measure of cost, fell from 68% to 64%. Lower, by the way, is better when it comes to that measure… But the analysts spoiled by CEO Charlie Scharf’s relentless cost-cutting were looking for 62.5%. Just not good enough.
Now, management told a story of a bank that’s been unshackled after last year’s removal of the Fed-mandated asset cap of 2018. Wells Fargo’s now able to grow more aggressively in areas like credit cards and investment banking. And again, you’ve gotta keep in mind that the stock was up like JPMorgan 35% over the preceding 12 months. That’s one reason why we sold some Wells Fargo for the Charitable Trust yesterday, even in the teeth of the hideous decline… I still believe in Wells Fargo longer term, but the stock… has to finish going down, and I don’t think it is yet… Now you know me, I don’t like trading, not at all. Unless you’re a full-time professional, I’m against it. But when you’re dealing with a stock that’s going parabolic like Wells has going into the quarter, then no set of numbers will satisfy the market, which is why I hate parabolic moves. And that’s why it was worth selling some… and if the stock keeps coming down, you know what? Well, we’ll get to buy the shares we sold at a much slower price.
In the end, I still believe Charlie Scharf knows how to transform what’s basically a consumer bank into an investment bank with a consumer bent. That’ll produce a higher price-to-earnings multiple, the secret sauce behind higher stock prices… And you know what? You’d wish that you bought the stock on weakness. So I’m glad we held onto the bulk of our position in Wells Fargo, but I’m also glad we did something called schnitzeling.
7. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is one of the stocks Jim Cramer discussed, along with market shortages. A club member mentioned that they invested in NFLX after the stock split, and asked Cramer if he thinks that the company will get back on track this year, or if they should “take a loss and sell it?” Cramer remarked:
I have to tell you… I thought that the conference call this week was a, it was a show of force. It was so good. It made me think that Netflix completely is on its game, as always. You should be a buyer of Netflix here.
Netflix, Inc. (NASDAQ:NFLX) provides streaming entertainment, including TV series, films, documentaries, and games. Cramer mentioned the stock as part of his game plan during the episode aired on January 16 and said:
After the close, we get results from Netflix. I expect the treatise on why the company needs Warner Brothers Discovery, the object of its affection, and is willing to pay a fortune to get it. How big a fortune will it be? I think that’s going to be determined by opponent, Paramount Skydance, which also wants the property. If Paramount, by the way, would just pay $34, this whole saga would end.
6. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 38
Oklo Inc. (NYSE:OKLO) is one of the stocks Jim Cramer discussed, along with market shortages. During the episode, a caller asked whether the stock is a buy, sell, or hold. Cramer replied:
Okay, Oklo, I’ve been saying sell it… It’s been knocked down pretty bad. I think it, there’s always these yahoos who want to come in, it’s up 22% for the year, who say, well, listen, it’s going to be the next greatest thing ever, and their technology’s unbelievable. This is nuclear power, and when we talk about nuclear power, you’re right. GE Vernova knows how to build a plant. Everybody else is just trying to learn and is not commercial. Oklo is not a commercial enterprise. Period.
Oklo Inc. (NYSE:OKLO) designs advanced fission power plants to deliver scalable clean energy and develops nuclear fuel recycling technology that transforms waste into usable reactor fuel. During the episode aired on December 15, 2025, Cramer mentioned the stock and stated:
Take Oklo, which I’ve been hounding you to sell for 40 points now. Oklo’s about fission reactors that could run on nuclear waste. The problem, the company hasn’t actually developed any nuclear reactors. They’ve broken ground on one site. But this is a nearly $13 billion company with a stock that’s up 288% year to date. Okay, people, that’s absurd. I’m sure the jokers who own the stock will pull it tomorrow morning because they’re worried about what I just said. They don’t want me to put the wood to it. I think your best opportunity comes between 10:30 and 11:30 AM because they are shameless.
5. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 55
Dover Corporation (NYSE:DOV) is one of the stocks Jim Cramer discussed, along with market shortages. A caller asked if the stock is a buy, sell, or hold. Cramer commented:
Alright, Dover reports next week. It’s too close for me to determine. I said yesterday at our meeting that I liked Dover, but it had jumped five points the day before, and we took a little off the table. It went down today. At this point, we have to wait till the 29th for the quarter before we opine on it. I do think that Rich Tobin is doing a terrific job, but we don’t have enough info. Let’s wait for the quarter.
Dover Corporation (NYSE:DOV) manufactures equipment, components, and software solutions for industrial, energy, imaging, and climate applications. During the December 17, 2025, episode, a caller asked whether the company’s stock is a buy, sell, or hold, and in response, Cramer remarked:
Oh, you know, I like Dover. It’s a short cycle name. It’s recommended by a bunch of people. The stock is finally getting the due that it’s worth. I think that Tobin’s doing a good job and I know he can do a lot of things. Got a great balance sheet. Stock’s on a real roll. I want to buy DOV, a club name.
4. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 75
CSX Corporation (NASDAQ:CSX) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer mentioned the company during the episode and commented:
When CSX got rid of Hinrichs, they brought in this guy that we really like, a terrific replacement. His name is Steve Angel… He’s a great operator, but you know, not a railroad guy, but a great operator. The big question here is whether Angel was brought in to put CSX up for sale like he did with Praxair, or if the board simply wants him to build a better company… When CSX reported in October, Angel was asked that question point-blank, and he said he’s open to strategic opportunities, but he also pointed out that he ran Praxair for a decade before he sold it to Linde…
Still, Steve Angel is 70 years old, and while I happen to think that is like the best age in history to run a company, I don’t think he was brought in to run CSX for a decade before selling it. After all, they’ve really only got three years left to merge with another major railroad. I don’t see any other White House possibly letting that kind of deal through because this industry already has a high level of concentration… I gotta tell you, though, while I like CSX, I sure wouldn’t buy it purely for takeover speculation. I’d buy it because I think the business is set to improve dramatically this year and a lot of the big problems are behind them…
Putting it all together, you know what, I think CSX represents an excellent buying opportunity even after today’s 2.4% run. This is a company that’s going to do a lot of self-help, and the numbers should improve dramatically just because they plan to spend a lot less than they did last year. But the bottom line: While CSX should do fine, even in a fairly stagnant economy, I think it is going to be a big winner if the economy actually picks up steam and a humongous winner if they somehow manage to attract a takeover bid. Again, don’t buy CSX for that takeover speculation alone… It’s because the fundamentals are improving and there’s… chance that another railroad might want to merge with them. CSX, I liked Joe. I like Steve. I think it’s going to work.
CSX Corporation (NASDAQ:CSX) provides rail-based freight transportation, intermodal container movement, and trucking services. The company handles commodities like chemicals, coal, agricultural goods, and industrial materials.
3. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer noted that the company’s “core business is doing very well,” as he said:
Putting it all together, while the quarter wasn’t perfect, the core business is doing very well, and the integration of Discover is proceeding as planned… I’m worn down by Capital One. It was such a great stock, but this is, you know, look, Richard’s taking a long-term view, and I wanted the integration of Discover to go smoothly, and now I’m worried about this. I trust Fairbank to be able to integrate Brex while he turns Capital One into a full-service financial company, offering both consumers and businesses everything they might need in banking and credit cards.
But I don’t think many other people are like me and know his work and are willing to be patient.
So if the Brex deal’s this good, why on earth did Capital One stock get eviscerated? Well, they missed earnings expectations even as I’m not as concerned as other people, but really I think it’s sold off thanks to high expectations… I’m still a believer. Capital One’s using this unique period where mergers that would normally be blocked are not going to be blocked because of the Trump administration’s laissez-faire approach to antitrust. And they’re building a very impressive, very formidable challenger in the financial services space, especially in credit cards. After today’s slide, Capital One trades at less than 11 times this year’s earnings estimates.
That’s so far below the average large bank… I love Amex… But even if Capital One closes that valuation gap by half, getting to a point where it sells for 16 times earnings, that would make this a $330 stock. It closed at $217 today, so that’s why I’m sticking around in Capital One for the Charitable Trust, but it’s been a painful couple of days. Here’s the bottom line: If you missed the stock’s tremendous rally last year, I think it’s finally going to come back down to where you can buy it again, probably on Monday.
In fact, this afternoon, the Charitable Trust upgraded Capital One, taking it from a 2 rating, which means buy on weakness, to a 1 rating, means it’s the stock we are buying now. These last few weeks have been tough for the stock, but from my perspective, that just means you’re going to be getting a better entry point, and as I’m telling club members, I’m probably going to buy back the stock for the trust that we sold much higher. Yes, the stock is down that much that, to me, it’s all [buy, buy, buy].
Capital One Financial Corporation (NYSE:COF) provides banking and financial services, including credit cards, loans, deposit accounts, and commercial banking solutions.
2. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 55
Cardinal Health, Inc. (NYSE:CAH) is one of the stocks Jim Cramer discussed, along with market shortages. Mentioning that they like the company, a caller asked for Cramer’s take on it, and he replied:
Oh, Jason Hollar. You know it’s funny… I’m out there. You got all these great drug companies, and who am I most blown away with? Hollar and Cardinal Health, and that urology purchase, the new purchase it just made. You’re dead right. CAH, I can see that stock going to $300.
Cardinal Health, Inc. (NYSE:CAH) supplies branded, generic, and specialty medicines and provides pharmacy and specialty drug services. The company also makes and distributes medical and surgical products and procedure kits. During the January 8 episode, Cramer called the company the “monster” among the drug distributors, as he commented:
The drug distributors continue to relentlessly climb higher. There’s nothing, you know, people hate the pharma middleman. Even the president doesn’t talk, like… them. But I got to tell you, their stocks, they are juggernauts. Cardinal Health, Cencora, and McKesson, they were all up more than 40% last year. Cardinal is really the monster of that group.
1. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 65
Nebius Group N.V. (NASDAQ:NBIS) is one of the stocks Jim Cramer discussed, along with market shortages. A caller asked where Cramer sees the biggest risk in the company and his view on the AI infrastructure. In response, Cramer said:
Well, I think that, I think that, you see, these stocks were all overvalued. What’s going to happen is one of these Mag Seven companies is going to say, you know what? We’re going to slow down the building, and then Nebius is going to be cut in half. I don’t want that to happen to you.
Nebius Group N.V. (NASDAQ:NBIS) provides AI-focused infrastructure, including GPU-based cloud platforms and tools that support the development of advanced models. A caller inquired about the stock during the January 7 episode, and Cramer replied:
Well, I’ll tell you, a younger person came to me, asked me about stocks that were losing money the other night… And I said to him, losing too much money, and I said, you’re young, you can speculate on it. A person who’s a little bit older, too much risk to it. But I blessed it for him because he’s very young. Otherwise, no, the opportunities are better elsewhere.
While we acknowledge the potential of Nebius Group N.V. (NASDAQ:NBIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NBIS and that has 100x upside potential, check out our report about this cheapest AI stock.
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