On Wednesday, Jim Cramer, the host of Mad Money, urged investors to stay calm despite a wave of selling in the stock market. The recent drop in stock prices, he explained, is largely driven by rising bond yields and ongoing concerns surrounding the federal budget.
According to Cramer, interest rates continue to climb and are putting pressure on equities. He pointed out that as investors sift through quarterly earnings, there is a sense that economic momentum stalled across the country. He said that the slowdown appears to have occurred in the period between Liberation Day, when the president introduced sweeping tariffs, and the subsequent weeks when many of those tariffs were rolled back.
READ ALSO: Jim Cramer Talked About These 10 Stocks Recently and Jim Cramer’s Recent Thoughts on These 15 Stocks.
Cramer made it clear that even though the government eventually backed off most of the tariffs, the damage to business confidence may have already been done. He mentioned, “I haven’t found a CEO who isn’t deeply concerned that they could come right back.” However, he went on to say:
“Remember, we’re in the thick of it right now. The budget deficit is front and center, hence the reckoning. When we finish the budget negotiations and we get some big beautiful bill, people will start focusing on how the tax cuts should be great for growth.”
According to Cramer, the shift in focus will usher in a different narrative. He said, “The reckoning will be replaced by a new thesis.” He acknowledged that whether or not the outlook is accurate is not the point; it is the change in sentiment that will matter most, as it could lift the heavy mood currently hanging over the markets.
“The bottom line is that this market should come roaring back because there are plenty of companies that can deliver excellent earnings in this environment, and their stocks are being clubbed along with everything else. Patience. Patience. Better prices are coming, I can promise you that.”
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 May 21. 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 Had These 9 Stocks on His Radar
9. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund Holders: 20
A caller inquired if they should hold Pony AI Inc. (NASDAQ:PONY) stock for the long haul or dump it and run while they can. Here’s what Mad Money’s host had to say:
“It had great revenues. I mean, I would’ve told you, let’s swap out of that and go into Tesla. But you know what? You can ride it… This is a young person’s stock. An older person stock will want Tesla, okay. Because it’s not clear to me that this company’s sustainable. But that’s a nice call by that gentleman.”
Pony AI (NASDAQ:PONY) develops autonomous driving technologies and offers services such as robotaxi and robotruck operations, vehicle integration, and software solutions. Additionally, the company provides intelligent driving systems, licensing, and vehicle-to-everything products aimed at improving transportation and road safety.
Pony AI (NASDAQ:PONY) reported unaudited financial results for the first quarter of 2025 on May 20. It reported total revenues of $14 million (RMB101.6 million), an 11.6% rise from $12.5 million in the same period a year earlier. The increase was largely due to significant growth in revenue from Robotaxi services. For the quarter, the company posted a non-GAAP basic and diluted net loss per ordinary share of $0.10 (RMB0.73), which was an improvement from a net loss of $0.28 per share in the first quarter of 2024.
8. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 24
When a caller asked if Lucid Group, Inc. (NASDAQ:LCID) is a long-term play, Cramer commented:
“You’re 21. Let’s put our money with something that is going to make a little more sense than Lucid. I think that if you wanted to be in that area, if you wanted to be in that kind of progressive area, you might go with Rivian, okay. I think Rivian is better than Lucid. Bingo.”
Lucid Group (NASDAQ:LCID) designs and builds electric vehicles, powertrains, and battery systems. The company also develops its own proprietary software for its vehicles. In February, Cramer commented on the company as he said:
“All sorts of electric vehicle plays that came public during the IPO frenzy of ‘20 and ‘21 got crushed. Rivian although ended up coming back. But Lucid, Nikola, Canoo, the Lion Electric, Lightning eMotors, Lordstown Motors, Faraday Future Intelligent Electric, all saw their stocks plunge more than 90% from peak to trough.”
7. Pan American Silver Corp. (NYSE:PAAS)
Number of Hedge Fund Holders: 35
A caller inquired about Pan American Silver Corp. (NYSE:PAAS), and Cramer said:
“Well, first, I want to give the same shout-out because that business… is dynamite. I happen to like silver very much, and… Pan American silver is the best silver mine. So I think you’ve got something going there. I’m with you…”
Pan American Silver Corp. (NYSE:PAAS) focuses on the exploration, development, and operation of mines, handling everything from extraction to refining. The company targets deposits of silver, gold, zinc, lead, and copper. On May 13, TD Securities cut its price target on PAAS to $26 from $30 and maintained a Hold rating. The firm called the MAG acquisition “transformational” for giving Pan American access to a “Tier I” primary silver asset. It expects concerns around the Escobal restart due to the timing of the deal and the “full valuation” paid for MAG.
6. Doximity, Inc. (NYSE:DOCS)
Number of Hedge Fund Holders: 38
Noting that the stock tanked after earnings on weak guidance, a caller asked for Cramer’s opinion of Doximity, Inc. (NYSE:DOCS), and he replied:
“That was a bad miss. That was a bad miss, and that’s a high-growth company that had just been building up ahead of steam, and I cannot recommend that company because that was an unfathomable miss, frankly. And I feel very badly about saying that, but I was quite surprised. I cannot get behind that.”
Doximity, Inc. (NYSE:DOCS) runs a digital platform designed for medical professionals and offers tools that support virtual care, career management, medical collaboration, and access to current research and news. The company also helps simplify administrative tasks and communication within the healthcare field. ClearBridge Investments stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q4 2024 investor letter:
“Doximity, Inc. (NYSE:DOCS), which offers a cloud-based collaboration platform for medical professionals that supports patient care and telehealth, was our top-performing holding in the sector. Shares rallied on a beat and raise quarter, with the company citing strong advertising revenue growth with impressive EBITDA flow through. Doximity has a history of consistent execution and, while it stumbled last year in effectively communicating realistic guidance and outlooks, it appears that management has regained investors’ trust through several quarters of solid execution.”
5. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 68
A caller asked if they should dump Occidental Petroleum Corporation (NYSE:OXY) stock for a loss or hold on, and Cramer replied:
“Let me take it from here. As you heard… I talked about not thinking about where you bought it… thinking about where you’re going to go with it. And this company, even though it’s owned by Berkshire Hathaway, Occidental, is not going to go anywhere. I wish I didn’t have to say that, but I don’t see this company getting a bid, and I don’t see oil going higher.”
Occidental Petroleum (NYSE:OXY) is involved in oil and gas exploration, production, and development, while also producing basic and vinyl chemicals. The company manages the transportation, storage, and marketing of energy products and invests in related operations. Appearing on Squawk on the Street on March 14, Cramer made similar bearish comments about the company as he remarked:
“Look at OXY. Look at the Buffett oil. I mean, it is just… OXY is emblematic of how bad this business has become. And it’s very hard to own the stock.”
4. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 79
Inquiring about Accenture plc (NYSE:ACN), a caller asked if the strategy of breaking the company up would be a good way forward. In response, Cramer said:
“No, don’t need to do that. No, don’t need to do that. Now, this stock went down because of DOGE. Now that Elon Musk is back to Tesla, I actually think you’d buy Accenture. I’ve been listening to Julie Sweet. I think she’s smart as a whip, and Accenture may be a company that can really help a lot of companies right here.”
Accenture (NYSE:ACN) is a professional services company focused on strategy, consulting, technology, and operations. The company provides offerings that include intelligent automation and application-based solutions. Madison Investments stated the following regarding Accenture plc (NYSE:ACN) in its Q1 2025 investor letter:
“Accenture plc (NYSE:ACN) shares were weak in the quarter due to possible contract cancelations from the U.S. Federal government. While some lost business does seem likely, Accenture’s overall exposure to this end market is limited and the headwind appears manageable.”
3. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
A caller mentioned that Micron Technology, Inc. (NASDAQ:MU) is getting “a bit toppy” and asked what Cramer thinks of sticking with the company. This is what Cramer said in response:
“I think it is getting a little toppy. I think the market’s getting a little toppy and Micron’s going to go with it. Now, it went down to 66. I think it could go down to 80 without a problem, and then you’ll probably want to buy it again. But I sense that there is a trade here, not an investment, for the moment, and you need to do a little [kaching kaching].”
Micron Technology (NASDAQ:MU) manufactures and sells memory and storage products, including low-latency DRAM, non-volatile storage, and fast-read memory devices. They are offered under the Micron and Crucial brands and through private labeling. On April 28, Cramer made similar comments as he said:
“Alright, Micron’s just okay. The last couple quarters, not great. I think you’d be doing it at the low end, there’s no doubt about that. But my problem is, I don’t know a catalyst to get it to go higher.”
2. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
A caller asked if the current price is a good entry point for Marvell Technology, Inc. (NASDAQ:MRVL). In response, Cramer said:
“I think Marvell is right to be bought here. I think Matt Murphy did a fantastic job. There was one little glitch involving one customer and it wasn’t, it wasn’t life or death. This level at $60 is a [buy, buy, buy].”
Marvell Technology (NASDAQ:MRVL) creates semiconductor solutions for data infrastructure, focusing on system-on-a-chip designs and integrating various processing technologies. The company’s products support networking, storage, and data transfer across a wide range of hardware applications. It is worth noting that on May 2, Cramer commented:
“It’s, you know, its stock is the same price as it was before it got into AI. This is ridiculous. It’s below right around where Matt Murphy, the CEO, bought stock back, bought it personally. I would buy the stock of Marvell, and I’d buy it on Monday.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Cramer was full of praise for Tesla, Inc.’s (NASDAQ:TSLA) CEO and differentiated between his efforts as a CEO and a political figure.
“I found myself marveling at Elon Musk…. For a moment, I recalled the Musk whom I adored. The guy who fought bigger than anyone and wasn’t afraid to tell you that. This was Musk in businessman mode. Very different from Musk in political operative mode… The one that got me most was this unabashed belief that we’re all going to be riding around in cars with no drivers…
I sensed that perhaps because of his time with the President, there may be something bigger in the works. I would not be surprised if the president pushes hard to allow the interstates, which I’m sure he will say he controls, to allow driverless cars, and he’ll order it as soon as Elon’s ready. Why not? We know that these self-driving Teslas are safer than cars driven by humans. The technology’s about as good as it gets. Musk has convinced me of that… After listening to Musk and prudently adding three years to everything he predicts, I can see this happening by 2028. More importantly, I like that we got the old Elon Musk back…
I guess I can say happily that I like the Musk who sends up rockets and tries to cure impossible-to-treat illnesses, sets up giant data centers, has systems that give you clear signals, streaming programs for a fraction of the price of cable providers. I like the Musk who just knows how to accomplish what he sets out to do… The original Musk, the modern day Da Vinci, the man with an ego the size of Jupiter, the one who just talked with David Faber, that guy, I kinda like him.”
Tesla (NASDAQ:TSLA) designs, builds, and sells electric cars and energy products. The company provides vehicle sales, financing plans, energy storage systems, solar power solutions, and other related services to a wide range of customers.
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 TSLA and that has 100x upside potential, check out our report about this cheapest AI stock.
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