In this article, we will look at the stocks Jim Cramer looked at during Mad Money’s episode. The host of CNBC’s Mad Money on Monday explained that a surge in certain technology stocks, specifically those tied to data storage and CPUs, is being driven by the rapid and unexpected expansion of AI-focused data centers.
We used to call it galloping. That’s when a stock races higher because something major has changed that makes the underlying company much more valuable, almost instantaneously, than anyone thought. Right now, there are two sets of stocks that are galloping: companies that make data storage and companies that make CPUs. Both are driven by the astonishing growth of the AI data center build-out, something that keeps catching people by surprise.
READ ALSO 25 Stocks on Jim Cramer’s Radar: Arm, Arista, and CoreWeave and Jim Cramer’s Opinion on 21 Stocks: Oklo, AST SpaceMobile, and Others
Cramer added that while it remains possible that a hyperscaler could develop a new method for storing data, or that semiconductor equipment companies might eventually produce enough machinery to ease supply constraints, that scenario has not played out so far. He noted that even semiconductor capital equipment makers are operating at full capacity, as they also have been unprepared for the sudden spike in demand.
And that’s why there’s no tipping point on the horizon, so the stocks run and run and run until they get to a level where they’re trading like growth plays, no longer value plays. Seeing these moves gives me vertigo, but I know we’re still pretty far from that endpoint, which means the galloping will continue until supply meets demand. And demand keeps growing while supply, it seems almost static compared to what is needed.
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 4. 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Jim Cramer Looked At 7 Stocks, Including Amazon, AMD, and Sandisk
7. Pershing Square Inc. (NYSE:PS)
Pershing Square Inc. (NYSE:PS) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Answering a caller’s query about the stock, Cramer said:
Too early for me to tell. I mean, obviously, the IPO itself did not price well, but we have to see. I want to see a couple of quarters and then get a sense of what’s really going on.
Pershing Square Inc. (NYSE:PS) is an alternative asset manager and functions as a subsidiary of Pershing Square Partner Group, LLC.
6. TTM Technologies, Inc. (NASDAQ:TTMI)
TTM Technologies, Inc. (NASDAQ:TTMI) was one of the stocks Jim Cramer looked at during Mad Money’s episode. During the lightning round, a caller inquired about the stock, and Cramer replied:
That’s another one of these stocks that is part of the great change in compute. And you’re absolutely right. It’s a good one.
TTM Technologies, Inc. (NASDAQ:TTMI) manufactures engineered systems, including radio-frequency components, circuit boards, and radar systems for industries such as aerospace, defense, and automotive. In addition, the company provides specialized design, testing, and thermal management services. Loomis Sayles stated the following regarding TTM Technologies, Inc. (NASDAQ:TTMI) in its third quarter 2025 investor letter:
TTM Technologies, Inc. (NASDAQ:TTMI) is the largest US-domiciled supplier of printed circuit boards, a foundational component for many electronic products. The company has worked for years to improve revenue quality and margins through factory consolidation, with notable success this year, combined with accelerated revenue growth during the third quarter which was driven by Artificial Intelligence servers and the aerospace/defense industry. The Fund’s investment is maintained given strong revenue visibility in the defense end market and further opportunities to increase margins.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer highlighted the increase in demand due to the data centers, as he stated:
The CPU companies are similar. For a long time, we had a CPU glut that constantly weighed on Intel and AMD, the two main players here. Plenty of capacity, not enough uses. Then the data center comes along, and there’s no longer a glut. There’s a shortage because the data center produces agents, and agents need an insane amount of CPUs. When you have a shortage, the company that makes the product pretty much becomes a growth stock overnight. The problem is, growth stocks get much higher valuations than value stocks, and the market can’t handle the transition all that quickly.
These stocks have to blow through all sorts of levels to get to where they’re inevitably going. And that’s the gallop that I’m seeing. That’s the gallop that you’re hearing. That’s the gallop I’m talking about. Periodically, some analysts will try to call a high. We had one today, saying that AMD had hit its peak. I come back and say, why? How do you know? Did the CPU shortage end? Do we not have any more agents? If it hasn’t ended, then the estimates are still too low. If the estimates are still too low, the stock’s going to go up when we find out the real numbers. So you use these downgrades to buy.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures processors, graphics cards, and AI chips for computers, servers, and gaming systems. Some of the company’s products include Ryzen and Radeon.
4. Sandisk Corporation (NASDAQ:SNDK)
Sandisk Corporation (NASDAQ:SNDK) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer explained how the stock sells for relatively cheap despite huge runs, as he said:
Western Digital and Sandisk have similar trajectories. That’s why their stocks can keep charging higher even though the moves seem just crazy. In reality, they’re just catching up to the sky-high but incredibly realistic estimates. Consider the price of Sandisk. Right now, the stock trades at $1,255. It’s supposed to earn around $63 per share in fiscal 2026, which ends in June, and then nearly $170 per share next year, which I think is actually a low-ball estimate, even though it’s up a staggering 3,500%, how’s your S&P fund doing, over the past 12 months. It’s still selling for less than 10 times next year’s earnings. That’s extremely cheap for a growth stock. And make no mistake about it, Sandisk has become a growth stock.
Sandisk Corporation (NASDAQ:SNDK) sells NAND flash-based storage solutions, including solid-state drives, embedded storage, removable cards, and USB drives.
3. Seagate Technology Holdings plc (NASDAQ:STX)
Seagate Technology Holdings plc (NASDAQ:STX) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer highlighted the company’s fall and impressive rise in earnings, as he commented:
The storage stocks, Sandisk, Western Digital, and Seagate, being the big three, just don’t know when to quit. They’ve been on insane runs because historically, we’re used to that industry putting up okay growth with fairly inconsistent earnings. Their stocks always had very low price-to-earnings multiples because nobody pays up for that kind of business, too boom, too bust. Suddenly, though, we’re building data centers all over the place, and these are warehouses full of servers that need colossal amounts of memory and data storage. That’s changed the game.
Let me give you just one example. Seagate had episodic earnings for years. In fiscal 2023, the 12-month period that ended in June 2023, they were barely profitable, making just 19 cents in non-GAAP earnings per share. In fiscal 2024, which ended in June, 2024, they made $1.29 per share. In fiscal 2025, they made $8.10 per year. Now, Seagate’s projected to make nearly $15 this year, fiscal 2026, then around $26 next year and $38 in fiscal 2028, which ends in June 2028. They’re practically printing money because there’s not enough storage to go around, so they can raise prices with impunity.
Seagate Technology Holdings plc (NASDAQ:STX) makes hard drives, solid-state drives, and storage solutions for personal, gaming, and business use.
2. Blackstone Inc. (NYSE:BX)
Blackstone Inc. (NYSE:BX) was one of the stocks Jim Cramer looked at during Mad Money’s episode. When a caller asked about the stock during the episode, Cramer said:
Okay, and I’ve gotta tell you something… I like Blackstone very much. I just… watched Jonathan Gray today talking to David Faber. I think it’s a really good situation. If anything, I’m interested in buying more Blackstone. That’s how good I think it is.
Blackstone Inc. (NYSE:BX) manages alternative assets, specializing in private equity, real estate, hedge fund solutions, and credit strategies. Cramer mentioned the company during the April 21 episode and remarked:
How about Blackstone, BX? Okay, not that long ago, we were reading about how this terrific private equity firm could be crushed by its private credit business line. Now, it had owned a fund that had big redemptions because of fear that the fund’s software investments would be destroyed by Anthropic. See the theme?… The stock fell from $160s in January to the low $100s. Other private equity firms gated funds or did limited redemptions. Blackstone, what did they do? They actually went to their employees and said, hey, would you like to step in and buy some of the private credit funds to help recover redemptions? I actually know they did this voluntarily. I was screaming up and down because, it was voluntary, that you had to buy the stock…. It quickly fell another 10 points… Then the software stocks in the most important software index sprang back to life. Too many short sellers, but not a lot of failures. It looks like Anthropic is not the kiss of death after all. Blackstone stock roars back to $133 at one point today, even though it pulled back in the afternoon to $128.50. The move was worth catching, even as it seemed like throwing good money after bad when the stock kept falling after the employees made their contribution.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer explained the reason why the Charitable Trust owns the stock, as he commented:
I’m talking about Amazon and its CEO, Andy Jassy. Higher interest rates can fell many a company, but if you want to guess who’d be the last man standing, you could do a lot worse than betting on Amazon with a stock that rallied $3.79 today. If there were a Kalshi bet about which company could thrive with a crimped consumer, it will somewhat oddly be Amazon, because their goal is always to keep prices as low as possible, making the ultimate trade-down play.
There’s a reason we own this one for the Charitable Trust. I’m in awe of how Amazon’s become all encompassing in so many aspects of our lives today… When I hear things like that, I try to figure out how much Amazon means to America, means to you. No one has ever been that big a factor to our growth since Standard Oil got broken up for monopolizing the oil market over a century ago…
The tech giant reported a really fabulous quarter last week, driven by their booming Amazon Web Services business for cloud infrastructure and AI. While this is still one of the largest retailers in the world, AWS alone has an annual revenue run rate of $150 billion. And they keep adding more to the story on a pretty regular basis. From setting up their own low-earth orbit satellites for internet service to offering their supply chain services to anyone who wants it, it’s at the heart of the computer-driven economy.
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.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
