On Tuesday’s episode of Mad Money, host Jim Cramer broke down the day’s turbulent market activity as he highlighted a shift in investor sentiment.
“This was a day of turmoil because the stocks that have been beaten up endlessly, mainly the foods and the drugs and their fellow travelers in the restaurant space, all rallied while the speculative stocks and anything involving the data center, it’s been so hot, they get blown out of the water.”
READ ALSO: Jim Cramer Shared Thoughts on These 14 Stocks and Jim Cramer Shed Light on These 14 Stocks.
Cramer questioned why the rotation was happening in the first place. He believes that once again, traders are focused on interest rates and are bracing for the possibility of a recession. He noted that the anticipation is driving investors to pile into sectors that tend to perform better during economic downturns, while cashing out of recent winners.
To Cramer, the market is simply going through a phase where the high performers needed to take a breather, and the laggards were finally catching a bid. He pointed out that these kinds of rotations typically drain momentum for about three days, and in his view, Tuesday marked just the beginning of that cycle.
“The bottom line: Okay, listen to me, I say, let the rotation play out. Give it some space. The stocks that are rallying have been down for days, maybe weeks, maybe even in some cases, months. They aren’t going to start going down again until we forget what Stargate was… and we get a couple of earnings reports from the consumer staples that are disappointing. Well, you can certainly count on those… Then, we’ll be back buying all that stuff, including… Palantir… but not until then, so don’t jump the gun.”
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For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on July 22. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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).
Jim Cramer Recently Commented on These 6 Stocks
6. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 91
Lam Research Corporation (NASDAQ:LRCX) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer recommended against buying the company stock, as he remarked:
“It would be best to accept that the food and drugs can have a couple of days in the sun, can’t they? The old leaders pulled back a little, can’t they? Don’t be in a hurry to buy Lam Research or Applied Materials or KLA… not after we had Texas Instruments on tonight, and I wouldn’t step in front of the falling knives that represent any of the meme stocks…”
Lam Research (NASDAQ:LRCX) develops equipment used in semiconductor manufacturing and provides advanced systems for deposition, etching, and cleaning processes important to integrated circuit production. During a March episode, Cramer said that he “would own the stock.” He commented
“I like Lam very much. Right now, it’s in the crosshairs of a lot of different geopolitical concerns. It’s one of those stocks that I think is deeply involved with the negativity right now. It’s a shame because Tim Archer’s not a negative guy and they are a fabulous company. I would own the stock.”
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