We recently published an article titled Jim Cramer Discusses These 18 Stocks & President Trump’s $500 Billion AI Plan. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against the other stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer had a lot to say about a lot of stocks. Along with stocks, he was also full of comments about the new Trump administration and how it’s different from the previous one. Cramer shared, “If you go back over the councils that were disbanded post-Charlottesville, what you would see are a lot of traditional industrialists and drug companies.” According to him, “These were the people that were not drawn to, by Elon Musk. Elon Musk has changed the equation” to increase the role that technology companies and executives are playing this time around.
Commenting further on Musk, Cramer shared, “Now, by the way, there’s a lot of talk now about where is Elon Musk?” This means wondering where he is “in terms of having people in powerful positions say, in the Defense Department.” Cramer believes that Musk “doesn’t seem to have them” and added, “If Musk wants to be meaningful, I don’t want a seat at the table, I want a table.”
The CNBC host also mentioned some industries that will benefit from AI. As part of a discussion about the returns from the multiple billions of dollars that firms have invested into AI, Cramer cautioned not to “forget healthcare.” He believes “Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
Cramer also shared his thoughts about the breadth of market performance during the day. While markets were rising, he noted, “Yet the S&P oscillator I follow, [inaudible] is slightly overbought, there’s a lot more room.” Cramer believes “there’s a considerable part of the market that has done nothing. Nothing for years. And that’s coming on.” He doesn’t like small-cap stocks either. “And I’m not a small cap aficionado,” Cramer commented. He believes, “That stuff doesn’t work. People always try to chin that up. And then somebody sells a big small cap derivative.” The host added that instead of small-cap stocks, he likes “companies that frankly, what we, you know we didn’t think all that much of the second tier tech companies that are really taking off. The semis that haven’t done anything lately.”
As for President Trump, Cramer believes that he needs to look at insurance costs that affect a large number of Americans. According to him:
“The President has to take a look at these issues. Because this is where the, the copay, your insurance, your group insurance, your property, casualty insurance. That’s where the President’s going to put it. If he wants to put a stake in the inflation. He goes after the pharmacy benefits managers.”
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 January 22nd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
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Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders In Q3 2024: 91
Oracle Corporation (NYSE:ORCL) is an enterprise resource planning software provider that is the second biggest player in its industry. It has also taken a key role in the AI industry by hosting hardware that other firms use for AI workloads. The firm’s Oracle Cloud Infrastructure business aims to host hundreds of thousands of GPUs for AI workloads, and Oracle Corporation (NYSE:ORCL) rose to prominence in January following President Trump’s $500 billion Stargate AI project. Cramer shared a lot of important implications from the firm’s role in Stargate:
“And then you realize, you know what there’s something big going on, bigger than you think which drives Oracle up 16, not because of meme guys coming in and saying you know what, hey this could work, because we already knew Oracle was going to do this. But maybe because there’s a reshuffling of the alliance. And the alliance could be in play David..
“And I think that I like people to understand, the fluid nature of things here is rather extraordinary. I mean you get up you try to figure out, you parse these things, you parse that meeting that happened at 6 pm. But I think, Bank of America has the right call on it. Says partnership provides potential scale benefits to Oracle. In March Reuters said Microsoft and OpenAI were planning to launch a joint venture dubbed Stargate. Involving a hundred billion dollars of joint funding for data center capacity. If true it appears that Oracle might have replaced Microsoft in an OpenAI joint venture. This would be extraordinary. And you know Carl, I don’t know whether Ellison was doing a dance yesterday because he was so happy about this announcement. Or because he may have a real coup here. And betting against Ellison has been one of the biggest fools game in history. Man he was on his game yesterday.””And to think that they wrote him off. And how about they laughed at him when he said he needed thousands of data centers. They’re not laughing now about Larry Ellison. And where is Safra? Who I think is fabulous.”
Overall ORCL ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of ORCL 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 timeframe. If you are looking for an AI stock that is more promising than ORCL 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.