Jim Cramer, the host of Mad Money, on Tuesday said investors are abandoning software and enterprise providers tied to artificial intelligence fears.
The clients win, the purveyors lose. Hardware companies triumph, software companies shrivel up and die. Industrials profit, enterprise service companies wilt… The market spoke up today, and it said yes, everything software must be thrown away. Anything remotely connected to software is suspect, including companies that just collect data. But any client, a bank, a consumer packaged goods company, an industrial company, is golden, at least for now, even if their earnings aren’t so hot… Wall Street is a prediction machine, and the prediction for software holders, pain.
READ ALSO: Jim Cramer Shared His Opinion on These 14 Stocks and Jim Cramer Shed Light on These 19 Stocks Recently.
Cramer also pointed out that many of these software stocks offer very little protection for shareholders due to the lack of meaningful dividends and limited share repurchase activity. He added that private equity-related stocks were hit hard as well because many of those firms hold enterprise software businesses that had been planning to go public. He said that path has effectively shut down, and he questioned how well investors even understand what many of those companies actually do.
The bottom line: Bulls have to hope that the software stocks have no contagion. Theoretically, right now, they don’t. They shouldn’t. There are winners, the users, and losers, the providers. Logic says the pain will not spread beyond this cohort. But then again, the market’s not always logical.
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 February 3. 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 Looked At These 7 Stocks Recently
7. Solstice Advanced Materials, Inc. (NASDAQ:SOLS)
Number of Hedge Fund Holders: N/A
Solstice Advanced Materials, Inc. (NASDAQ:SOLS) is one of the stocks Jim Cramer looked at recently. Answering a caller’s query about the stock, Cramer said:
Solstice is terrific. It’s the spin-off of… Honeywell. It’s been just a horse. We own some. We were too quick to sell it. It’s a fantastic stock.
Solstice Advanced Materials, Inc. (NASDAQ:SOLS) is a specialty materials company that provides solutions for applications in refrigerants, semiconductor manufacturing, data center cooling, alternative energy, protective fibers, and healthcare packaging. During the episode aired on November 19, 2025, Cramer discussed the company’s nuclear-related operations, as he stated:
Hey, I got another one. How about a nuclear energy idea that’s in the S&P 500 that I know you’ve never heard of. It’s called Solstice Advanced Materials. It’s the chemical business that was just spun off by Honeywell at the end of October. Solstice mainly operates in the refrigeration electronics markets. But get this, it has this alternative energy services division that specializes in nuclear. In fact, it’s the only American provider of uranium hexafluoride conversion services, which is the crucial step in preparing uranium for enrichment so it can be used as fuel.
It’s the one to own. Solstice Metropolis Works facility was idled in 2018. Why? Because, of course, there was no demand for nuclear power, but it was just brought back online two years ago to help power all these new data centers. Company’s backlog was up a quick 12% from the second quarter to the third quarter. I know, you’re yawning, you’re bored, I don’t care… Solstice is a profitable company with a direct way to make money on nuclear energy. Stock’s only up about two bucks from its post-spin lows. It’s inexpensive.
