Jim Cramer on USA Rare Earth: “I Think It’s Too Risky Right Here”

USA Rare Earth, Inc. (NASDAQ:USAR) was among the stocks Jim Cramer covered on Mad Money as he discussed the wave of IPOs being the market’s possible biggest threat. When a caller asked about the stock during the episode, Cramer said:

Well, it is up 100%, and what we’re discovering is the companies that are up between say 60 and 100% are rolling over and not going higher. I want to wait for a pullback… I think it’s too risky right here.

Photo by Joshua Mayo on Unsplash

USA Rare Earth, Inc. (NASDAQ:USAR) supplies rare earth elements and other critical minerals, including neodymium, dysprosium, terbium, gallium, beryllium, and lithium. A caller asked about the stock during the lightning round of February 27’s episode, and Cramer responded:

Okay, so I’m going to tell you this is a totally speculative situation. Now, in How to Make Money in Any Market, I say you can buy one of these, okay? Let that be your one. Do not betray me and buy two of them. That’ll be too dangerous.

While we acknowledge the risk and potential of USAR 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 USAR 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 

Disclosure: None. Follow Insider Monkey on Google News.