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Jim Cramer on NRG: “I Think It’s a Very Well-Run Company”

NRG Energy, Inc. (NYSE:NRG) is one of the stocks on Jim Cramer’s radar recently. When a caller asked if the stock could get a signature, Cramer “Booyah!”, he replied:

“You are going to get a Booyah because I like the nuclear component there. I think it’s a very well-run company.”

Stock market data. Photo by Alesia Kozik on Pexels

NRG Energy, Inc. (NYSE:NRG) produces and sells electricity from multiple sources and provides energy management, home services, and smart home solutions. Cramer mentioned the company while discussing the performance of S&P 500 stocks during the July 1 episode and said:

“Next up is NRG Energy, which was the second best performer, up 78%. This Houston-based power generation utility is roaring thanks to the insatiable demand for electricity in the year of AI data centers. Lately, these power generation utilities have been huge winners. I mean, we saw it with Constellation Energy, Vistra. It’s happening again with NRG. However, NRG is only partly an independent power producer.

[The] company also has a residential utility as well as a home solar business. And as the Wall Street Journal recently pointed out, it makes a lot of money from derivatives trading. I’m not crazy about that, but it makes NRG more like an energy trading hedge fund in some respects. I’m not crazy about that either, which brings me to the other reason the stock’s having a great year. Back in May, NRG announced it’s acquiring a handful of natural gas fuel power plants along with some other assets from LS Power.

The deal’s valued at $12 billion, though that’s in cash and stock and the assumption of debt. NRG stock jumped 26% the day the deal was announced, and it’s climbed a bit more since then because Wall Street loves the fact that they’re doubling down on power generation. Also, caused a lot of shorts to cover because they were just in there to believe that it was just a big hedge fund.”

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

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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