We recently published an article titled Jim Cramer Discusses These 10 Stocks & Says Bitcoin Created “Froth” In The Market. In this article, we are going to take a look at where Lam Research Corporation (NASDAQ:LRCX) stands against the other stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the impact of Elon Musk’s DOGE cost-cutting efforts on the US government and how action against smaller agencies such as USAID can translate into action against larger agencies and programs.
According to him:
“But I do think that when the Defense Department is on the [inaudible], and then Medicare, Medicaid. I mean, Medicare, Medicaid, I don’t know a soul who thinks that there isn’t fat in there. And I also think that, kind of like the labor department, with the unemployment number we really don’t know what it is we have big revisions, if we had, if we gave to Salesforce, I don’t know. . .I think that, if we gave these companies, literally outsourced these companies, I know people are going to say, Jim you are like, that is so right wing, but if there’s, the machines are better. . “
Cramer also commented on recent Bitcoin price action which saw the cryptocurrency dip below the $90,000 mark. He linked Bitcoin as being a “proxy for the fact that we have thirty-six trillion in debt.” Cramer also wondered how much of the gain in Bitcoin’s price was due to Michael Saylor’s firm adding the currency to its balance sheet.
Cramer added that his team has concluded that so much of the “froth” in the market in untested areas such as quantum computing came from Bitcoin. He outlined: “The reason why we’ve had so much froth . . .we think that Bitcoin got people very excited about things that are space age and that the fundament of speculation is Bitcoin. That’s what turned it all on.”
Another topic that caught the CNBC TV host’s attention was the mergers and acquisition environment in the Trump administration. After the President’s election victory in November, investors were ecstatic as they believed that the new administration could create a healthy environment for deals. Commenting on how the rules of the market still remained the same, Cramer outlined:
“Look you can enforce the rules two ways. You can use the rules and talk. Or you can prosecute using the rules. And they’re not going to prosecute. They’re going to have discussions. They are not going to do it the way that Biden did.”
He also shared that the “size” of the deals that are taking place is “microscopic” and added that “The M&A and the IPO markets are as dead as I have ever seen them.”
Apart from the M&A sector, another sector he discussed was the consumer packaged goods. These firms have struggled amidst high input prices and inflation. Cramer believes “They should all, the consumer packaged goods companies, should merge. Because they’re pathetic. They’re pathetic parodies of stocks. . . which by the way I really like them.”
Finally, he also commented on the poor performance of Mag 7 stocks and inflation. According to Cramer:
“I mean, I keep thinking about what you said about the Mag 7, and their ability to be able to affect spending. If that’s the case, look, the Fed is, Austan Goolsbee, whom I really, really like, he’s been waffling. I wish he went the other way. Because I think the data says, that he would have been right. Except for insurance, stake, eggs, okay. These are bad. Insurance, steak, and eggs. And then entertainment is just ridiculous. If Swift were to cut the prices of her tickets, we would have a rate cut immediately.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on February 25th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
A technician operating an automated semiconductor processing machine with laser accuracy.
Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders In Q4 2024: 84
Lam Research Corporation (NASDAQ:LRCX) makes and sells chip manufacturing equipment which places its share performance at the mercy of the broader non-AI industry and geopolitical tensions. The firm’s shares have dropped by 13.40% over the past year as it has been affected by multiple catalysts such as American sanctions against China, chip machine manufacturer ASML’s tepid guidance, and the DeepSeek selloff. Cramer’s comments about Lam Research Corporation (NASDAQ:LRCX) surrounded the hit that the firm has taken from the China sanctions:
“I had Lam on and I had KLA on, and they’ve already taken the big hit. They could take another hit.”
Overall LRCX ranks 8th on our list of stocks Jim Cramer recently discussed. While we acknowledge the potential of LRCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LRCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.