On Tuesday’s episode of Mad Money, host Jim Cramer discussed the risks associated with investing in speculative stocks.
“We’ve had a huge wave of debt-fueled speculation that now threatens to wipe out your savings in a heartbeat. These stocks have been moving straight up for a long time now, and there’s a huge cohort of people who only know how to chase them and nothing more.”
READ ALSO: Jim Cramer Was Focused on These 13 Stocks Recently and Jim Cramer Recently Covered These 10 Stocks.
Cramer clarified that while he supports speculation, it must be approached intelligently. He explained that investors need to dig deeper, starting with a basic understanding of what the company actually does. He said it is important to know how a company generates revenue, whether it is profitable, and whether it is involved in something unique or proprietary. Cramer also reminded investors to consider whether the company’s future profits could ever realistically justify its current market price. He noted that it is not enough to rely on momentum.
“So if you can’t describe what a company does and how it makes money, assuming it makes money at all, then I gotta tell you, it’s not too late to sell. Nail down those profits with these specs, please… If you stick around, there’s a good chance you’ll lose all of your gains. And if you borrow money to buy these things, you’ll lose a lot more than that.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 21. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Recently Answered Questions About These 10 Stocks
10. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 16
Innodata Inc. (NASDAQ:INOD) is one of the stocks Jim Cramer recently answered questions about. A caller sought Cramer’s opinion of the stock, and he replied:
“Yeah, digital content. I actually like this company. It’s [got] a very high price to earnings multiple, but it does at last make money. I at least got to end the… lightning round on one company that seems like a very real company.”
Innodata Inc. (NASDAQ:INOD) provides data engineering and AI services, including data preparation, annotation, and model training. In addition, it offers platforms for digitizing medical records and managing marketing and media communications. During February 21’s episode, Cramer discussed the stock and said:
“What a stock. I mean, yeah, you were right. You’re right. It’s a high multiple stock and it didn’t get hit today. How about that? That is what I call a hero stock.”
Since the above comment, the stock has gained over 24%.
9. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is one of the stocks Jim Cramer recently answered questions about. When Cramer was asked about the company during the lightning round, he said:
“You mean the one that just had a giant seller, a giant insider selling, a director. No, I don’t want to be there. Giant insider selling does not work for me.”
Rigetti Computing, Inc. (NASDAQ:RGTI) develops and operates superconducting quantum computers and provides access to its systems through cloud-based quantum computing services. When a caller inquired about the stock during the August 27 episode, Cramer commented:
“Okay, here’s my view on quantum computing: it is for real. Is Rigetti my favorite? No, but Rigetti’s one that could have a headline tomorrow. It’s like Oklo… And I said… enough, I can’t take it anymore. I think that this one’s like that. Rigetti could have something that could be a home run. I don’t want to keep you out of it. But it is a speculation, please remember that.”
8. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 41
Aurora Innovation, Inc. (NASDAQ:AUR) is one of the stocks Jim Cramer recently answered questions about. A caller asked what Cramer thinks of the company, and he commented:
“It can’t seem to make money. I can’t recommend stocks at this time that can’t seem to make money. And they are definitely, even with those bloodlines, not making money.”
Aurora Innovation, Inc. (NASDAQ:AUR) develops autonomous driving technology through its Aurora Driver platform. The platform integrates hardware, software, and data systems to enable self-driving. During the July 26 episode, a caller asked about the stock, and Cramer responded:
“I know the company, and here’s what I’m going to say… another time in the show, where I’d say, listen, that’s too speculative. But I have seen these speculative stocks go up and up, and I’m not going to make you sell Aurora Innovation when a headline would cause that stock to double.”
7. Tecogen Inc. (NYSE:TGEN)
Number of Hedge Fund Holders: 4
Tecogen Inc. (NYSE:TGEN) is one of the stocks Jim Cramer recently answered questions about. During the lightning round, a caller inquired about TGEN and mentioned the company signing a letter of intent for a 100 MW+ data center project, with potential expansion of this project to 500 MW. Cramer stated:
“It could be good, but they’re losing money. I, you know, it just had a giant move up anticipating exactly that. I’m going to have to say I’m taking a pass.”
Tecogen Inc. (NYSE:TGEN) designs, manufactures, and services natural gas-powered cogeneration, cooling, and refrigeration systems for commercial, residential, and industrial applications.
6. GRAIL, Inc. (NASDAQ:GRAL)
Number of Hedge Fund Holders: 28
GRAIL, Inc. (NASDAQ:GRAL) is one of the stocks Jim Cramer recently answered questions about. Responding to a caller’s question about the stock during the lightning round, Cramer remarked:
“Yeah, and I just read a really good piece the other day written by Dr. Topol, who’s been on the show a number of times. It did not make me feel that it was worth a, you know, I just didn’t think it was worth owning after this very big parabolic move. I’m going to say absolutely not to that one.”
GRAIL, Inc. (NASDAQ:GRAL) develops and markets blood-based tests for early cancer detection, including its Galleri screening test for multiple cancers. On October 17, it announced positive results from its PATHFINDER 2 study of the Galleri multi-cancer early detection test. The study included 35,878 adults, and it showed that adding Galleri to standard screenings increased cancer detection more than seven-fold, with over half of the detected cases found at early stages, and about three-quarters of the cancers detected by Galleri lack existing screening options.
In addition, Galleri demonstrated 99.6% specificity, a 0.4% false positive rate, and correctly identified the cancer’s origin 92% of the time. There were no serious study-related adverse events, and GRAIL, Inc. (NASDAQ:GRAL) is planning to submit the data to the FDA for premarket approval in the first half of 2026.
5. Trilogy Metals Inc. (NYSE:TMQ)
Number of Hedge Fund Holders: 9
Trilogy Metals Inc. (NYSE:TMQ) is one of the stocks Jim Cramer recently answered questions about. A caller asked whether to hold or sell the stock, and Cramer replied, “It is a parabolic move that’s just now declining. You gotta sell that.”
Trilogy Metals Inc. (NYSE:TMQ) explores and develops mineral properties focused on copper, cobalt, zinc, gold, silver, and lead. On October 10, BMO Capital downgraded the company’s stock to to Market Perform from Outperform and raised its price target to $5.50 from $3. The firm noted valuation concerns after the stock’s re-rating after the U.S. federal government investment and said that while the news is positive, the shares are trading above typical multiples for development-stage projects. Additionally, on October 8, Cormark downgraded Trilogy Metals Inc. (NYSE:TMQ) from Buy to Market Perform with a price target of C$5.25.
4. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 30
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the stocks Jim Cramer recently answered questions about. When a caller asked about the company during the lightning round, Cramer said:
“Okay, see this is the kind of company, alright, this is what I hate. I know that they filed a big convertible after the close. That is exactly what I’m most afraid of. That’s an equivalent of a big corporate finance. It’s going to push the stock down. That’s what I’m seeing with a lot of this speculative stuff. No, no, no.”
AST SpaceMobile, Inc. (NASDAQ:ASTS) builds and operates the BlueBird satellite network. The company delivers space-based cellular broadband that connects directly to standard smartphones for both commercial and government applications. Crossroads Capital stated the following regarding AST SpaceMobile, Inc. (NASDAQ:ASTS) in its second quarter 2025 investor letter:
“Our second-largest position, AST SpaceMobile, Inc. (NASDAQ:ASTS), is a pioneer in space-based cellular broadband that will quite literally change the world should it succeed in its ambitious mission to solve a persistent and universal pain point for mobile users around the globe: eliminating coverage gaps while bringing affordable broadband to billions without basic internet services.
As a quick refresher, AST was founded in 2017 by CEO Abel Avellan before going public as a SPAC in 2021. The company’s raison d’être is to “connect the unconnected” by providing uninterrupted direct-to-device (“D2D”) broadband coverage to everyday smartphones via the world’s first and only purpose-built global low earth orbit (“LEO”) network for D2D. In short, the company provides satellite-based cell tower services to wireless carriers around the world through basketball court-sized phased array antennas deployed in LEO, a key globally scalable enabling technology set to redefine wireless connectivity on a global scale.
The emergence of AST represents a pivotal moment in the evolution of not just the company but the entire telecommunications industry, primarily because AST is not merely iterating on existing technology but is introducing a fundamentally new category of service that aims to bridge the digital divide and provide ubiquitous cellular coverage to underserved populations worldwide. Indeed, if we may be so bold, the company isn’t just building a satellite network – it’s constructing the final piece of digital infrastructure that will complete a century-long arc toward universal human connectivity…” (Click here to read the full text)
3. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 75
Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently answered questions about. A caller expressed intrigue about the stock given that the Federal Reserve lifted the asset cap on the firm. In response, Cramer commented:
“Okay, so I gotta give you the, because I play with an open hand, Wells Fargo’s one of the largest positions for my trust. When it went up, it spiked. Both Jeff Marks and I said, you know what, we’ve got to trim a little. So we trimmed a very small amount. There’s some stock that we bought in the 30s. So I can’t tell you go buy it if I actually just sold some today. I happen to think the bank at 13 and a half times earnings is very cheap, though. It’s just that I can’t have a huge position… as much as I like Charlie Scharf, the CEO. Look, I can’t ignore the issues facing regional banks for the past couple of weeks, but for all the fear out there, I’m not seeing anything systemic yet.”
Wells Fargo & Company (NYSE:WFC) provides banking, investment, mortgage, and lending services. In addition, it offers wealth management, treasury, and capital markets solutions.
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer recently answered questions about. A caller asked Cramer’s thoughts on the stock, and he replied:
“I like Micron, but it’s just had a parabolic move, and we can’t buy parabolics. We have to wait for it to come back down. I think it’s not that expensive because the numbers for DRAMs are coming up. But I do believe that you have to let that one have a little bit of a break before you jump in there.”
Micron Technology, Inc. (NASDAQ:MU) develops and produces memory and storage solutions and provides supporting software, design tools, and firmware. On October 6’s episode of Squawk on the Street, Cramer commented:
“[On Morgan Stanley upgrade] Yeah I mean look you had to buy it right after they reported the quarter and then the stock went down badly. Of course it went down for no reason whatsoever… Look, Sanjay came on our show, Sanjay Mehrotra, from Micron, and he, he is a humble person. And the stock got clobbered in part because he didn’t say me, me, me. I’m great, I’m great, I’m great. That’s not his nature. That’s what a fifth grader does. He’s not a fifth greater.”
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer recently answered questions about. Answering a caller’s query about the stock during the episode, Cramer said:
“Here’s the problem with Lilly: they need to have something else to come out. They need something that’s big that the insurance companies will cover, for their drug, because right now, a lot of people just feel, you know what, this Ozempic thing, it’s played out. If you get something else, a new indication, that will ignite the stock.”
Eli Lilly and Company (NYSE:LLY) develops and sells a wide range of prescription medicines, including treatments for diabetes and obesity, cancer therapies, and drugs for autoimmune, neurological, and pain-related conditions. It is worth noting that on October 1, Cramer said:
“I suggest, for example, that you consider Eli Lilly because of its remarkable GLP-1 diabetes and weight loss drug. Those are the most obvious uses. But when this year is over, I gotta tell you something, I think it could be used for everything from the silent killer of hypertension to dementia, and yes, alcoholism. Lilly’s stock has been stalled because of the drug’s clumsy delivery mechanism.
It’s an injectable that needs to be refrigerated. Not ideal, but Lilly’s testing a one-a-day pill… that could alleviate the principal objections to the life-saving weight loss drug. It will expand the market in a huge way. Unfortunately, both the injectable and apparently the pill take off all body weight, not just fat. Still, a successful pill could take Lilly’s market cap from $781 billion, where it is now, into the trillion-dollar winner circle. That makes it worth buying even up here.”
While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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