We recently published a list of Jim Cramer Answers If the Market Has Bottomed and Weighs In On 11 Stocks. In this article, we are going to take a look at where Powell Industries, Inc. (NASDAQ:POWL) stands against other stocks that Jim Cramer discusses.

On Monday, Jim Cramer, the host of Mad Money, highlighted how the market has turned upside down, with investors now buying stocks that they used to dislike, saying:

“If you told me this is where the market was headed two or three months ago, I would have thought you were insane, even crazier than I am. This radical transition over the past few weeks has just been frankly unfathomable. We’re now buying stocks we hated and we’re despising, and guess what we are now selling short the stocks that we used to worship. And it’s all happening on the fly. […] You can’t tell what’s underneath though but that makes it much easier for those real seekers who want to surf the Trump ‘stock wave’.”

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Cramer centered the episode around the question on every investor’s mind: has the market finally bottomed?

“Fresh off a turbulent week for the tape, I’m opening up the phone lines and answering your most pressing questions because are we at a bottom? That’s what everybody wants to know. […] Well, the tariff exemptions, it looks like they’re coming. Market was eager to take a sigh of relief. I’m not so sure where we are with them, but the major indices jumped higher on President Trump’s announcement of temporary exemption on tariffs for phones computers and semiconductors, and really, I guess the subtext is for Apple. But in a tape this volatile we have headlines dropping left and right, I’ve got to tell you, I spend so much time trying to figure out what’s going on, but I think that periodically I nail it. So tonight what I want to do is open up our phone lines to hear directly from you, from the people of America.”

Our Methodology

For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Powell Industries, Inc. (NASDAQ:POWL)

Number of Hedge Fund Holders: 26

A caller pitched Powell Industries, Inc. (NASDAQ:POWL), highlighting its growth and valuation. Cramer acknowledged its potential but flagged it as a data center play, a category currently out of favor. Here’s what he said:

“I know Powell Industries and it was in favor – kind of like an Emerson – not that long ago, and suddenly it’s out of favor. If you’re willing to hold on for the next cycle it’s fine, but I’ve got to tell you it’s considered to be a data center play, and people think that data centers are slowing down and that’s the case with Powell Industries too. I’m sorry, I wish I could be more positive. It’s a very inexpensive stock.”

Earlier this year, Jim Cramer analyzed the downfall of Powell Industries, Inc. (NASDAQ:POWL) and explained the reasons behind the stock falling out of favor. Here’s what he said:

“This is not an ordinary moment, people. It’s been really interesting to watch Powell stock since the calendar flipped to 2025. It actually went on a huge run in mid-January, climbing quickly from around $230 to nearly $330 in a blistering six-day rally. At one point, that was right after SoftBank, Oracle, and OpenAI announced their $500 billion Stargate AI data center investment project at the White House. Like I said, when the data center was hot, this thing was unstoppable. However, you live by the data center sword, you die by the data center sword. That January rally was followed almost immediately by a sickening 16% decline on January 27th. You know, that day is now known on Wall Street, at least, as “DeepSeek Monday,” when the AI data center stocks just collapsed after the release of a reportedly low-cost Chinese model that seemed to perform just as well as the US competition while using far less hardware. Since then, POWL stock has become the house of pain. Of course, Powell’s not alone here. Everything connected with the data center theme, as I said at the top of the show, has been taking a hit, including the old-line industrial plays that looked like they had made it last year. I think this is now overdone, but many think that the buildout was overdone and we are now past our due date if we own these stocks.”

Overall, POWL ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of POWL 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than POWL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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