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Jim Cramer on Mastercard: “Very Strong Quarter in the Face of a Very Tricky Economic Backdrop”

Mastercard Incorporated (NYSE:MA) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer explained why the stock “got hit,” as he said:

What just happened to the stock of one of my longtime favorites, Mastercard? This morning, the payments company reported what I thought was a very strong quarter in the face of a very tricky economic backdrop. Stock sold off more than 4% today. It’s now down 12% for the year. While Mastercard delivered a healthy top and bottom line beat, their guidance to some was a little disappointing, expense side. So the stock got hit. I don’t think it should have been down 4%, though.

A stock market chart. Photo by Arturo A on Pexels

Mastercard Incorporated (NYSE:MA) provides payment processing and related technology solutions. The company provides credit, debit, and prepaid products, along with digital, cross-border, and business payment services. L1 Capital stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q1 2026 investor letter:

Mastercard Incorporated (NYSE:MA) and Visa remain two of the Fund’s largest holdings. Both businesses continue to deliver consistent financial performance, with double-digit earnings growth. Despite this, share prices have drifted over the past 12 months and underperformed the broader market, including a decline of more than 10% during the March quarter. This underperformance reflects concerns that emerging technologies – including agentic commerce, stablecoins and alternative payment rails – may disrupt the traditional payments ecosystem.

While we acknowledge the risk and potential of MA 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 MA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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