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.
6. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 10
Gladstone Land Corporation (NASDAQ:LAND) is one of the stocks Jim Cramer looked at recently. When a caller asked about the stock during the lightning round, Cramer remarked:
Oh, will you stop? I don’t know what they actually… Oh, they own farmland? Don’t know where, don’t know when. I think you should kaching-kaching that one.
Gladstone Land Corporation (NASDAQ:LAND) is a real estate investment trust that acquires and manages a diverse portfolio of farmland producing fresh produce, row crops, and permanent crops like nuts and wine grapes. During the March 19, 2025, episode, a caller sought Cramer’s thoughts on the stock, highlighting its monthly dividend. Cramer replied:
I’m gonna see your Gladstone Land and raise you with Realty Income, which also has a monthly dividend and I feel much better about it. What can I say?
For context, since the above comment was aired, Gladstone Land Corporation’s (NASDAQ:LAND) stock is up by 3%, while O is up nearly 9%.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the stocks Jim Cramer looked at recently. Cramer discussed the company’s latest quarter, as he commented:
This morning, Merck reported a very solid quarter, but gave what some people thought was a soft full-year forecast, yet the stock finished up the session more than 2%. Why? Because investors realized that the guidance was dragged down by one time costs related to a big acquisition last year. How could they not know that? This is one of my favorite pharmaceutical stocks.
Merck & Co., Inc. (NYSE:MRK) is a healthcare company that provides a wide range of human and veterinary pharmaceuticals, vaccines, and health solutions. Cramer mentioned the stock during his game plan presented on the January 30 episode. The Mad Money host said:
Merck has a lot to talk about, namely, some real wins from its bountiful acquisition spree. I like the stock. A little too heavy on Keytruda right now, but I think it can spread out the wealth.
4. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 65
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the stocks Jim Cramer looked at recently. Cramer showed an opinion contrary to the market reaction after the company reported its latest earnings, as he stated:
What’s going on with the stock of Chipotle? This stock’s been making a comeback over the last couple of months, but when it reported after the close, Wall Street was a little mixed about this one. Even though the numbers came in better than feared, management’s full-year same-store sales forecast was slight light, and the stock plummeted in after-hours trading. I think that Wall Street’s going to be wrong here. I think this is getting mighty attractive. So does the company. They’ve been buying back stock hand over fist.
Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates restaurants that provide burritos, bowls, tacos, salads, and other menu items. During the January 27 episode, a caller asked if the stock was a buy, and Cramer responded:
You know, a lot of people are warming up to Chipotle down here. It has had such a decline. It only sells for 34 times earnings. I say only because I’ve seen it at a much higher price-to-earnings multiple. I think it’s actually at a decent level to put some stock on. They have a report on Feb 3rd. Remember, it might go back down to that $30 low, and you might have to buy a little more. But wow, what a good franchise at a very reduced price.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer looked at recently. A caller asked if it is a good time to invest in the stock, and Cramer replied:
Okay, I’m [of] two minds on Broadcom. It’s not a good time to get into it, but it’s a great company. So what are we going to do? We’re going to let it come down. It did bounce today. We’re going to hope that Hock Tan does a buyback. He’s got the earnings. I’m going to throw in, let me throw in NVIDIA… This company is a winner in this environment, not a loser. And I will be right. Just going to take a little while.
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor devices and infrastructure software, including networking, connectivity, and storage solutions. The company’s products are used for applications in data centers, telecommunications, broadband, smartphones, industrial systems, and AI networking. During the January 26 episode, a caller asked if they should hold or sell their position in the stock. In response, Cramer said:
I’m going to make a suggestion, not hold, not sell, but buy. I think that Broadcom is down to the level, it’s about a hundred points from its high. Hock Tan has made quarter after quarter after quarter. I think he’ll do it again. It’s got growth. Software and hardware both are on fire. It does a lot of work with Google. It’s expanding that work. I think that Broadcom represents one of the cheaper ways to play artificial intelligence.
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 76
Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer looked at recently. Cramer was bullish on the stock during the episode, as he remarked:
But the other mind says you can’t jump in front of a speeding freight train. Far better to just own the stocks of companies with big software spending that can presumably save fortunes. Public companies that can… Wells Fargo, they just hired a technologist from Amazon Web Services to help the bankers find the hidden savings. That’s a winner.
Wells Fargo & Company (NYSE:WFC) provides financial services, including banking, lending, investment, and wealth management solutions. Cramer mentioned the stock during the January 23 episode, when a club member asked about businesses that would “benefit from AI advancements beyond the producers of chips and energy and infrastructure.” He stated:
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.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the stocks Jim Cramer looked at recently. Cramer highlighted why the stock has been brought down and shared his thoughts on it, as he commented:
Now, most of what we’ve seen today does seem like panic selling, with some buying of the companies that pay for software… But there are others who see this pattern, and they decide to avail themselves of ETFs that allow them to short the heck out of software such as the iShares expanded Tech Software Sector ETF or the IGV, as it is known… Are the declines overdone? Or are all of these enterprise software plays about to be rendered obsolete thanks to artificial intelligence? As usual… it’s a little more nuanced. I’m of two minds here. One… we ought to take advantage of their sale to pick up the other tech stocks that are being dragged down by the blunt force instrument that is this ETF.
For example, you know what we did today? We bought CrowdStrike for the Charitable Trust. This is a cybersecurity company. It shouldn’t even be in the enterprise software cohort, but it’s being brought down by that stupid ETF. The idea that somehow someone is going to use AI to create a software company that identifies and stops bad guys from North Korea and Albania just ain’t going to happen. I’m calling that fanciful. I have no idea how CrowdStrike got in this stupid ETF in the first place. It doesn’t belong there, and the makers of the index should know better, but they’re faceless people.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-based cybersecurity solutions. The company offers protection for endpoints, cloud systems, identities, and data.
While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CRWD and that has 100x upside potential, check out our report about this cheapest AI stock.
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