On Monday’s episode of Mad Money, host Jim Cramer addressed the market’s reaction to President Donald Trump’s latest semiconductor deal and noted that it is not something entirely without precedent.

“Normally, when the government gets involved with business, you expect it’s going to be bad or at least bad for the business in question. In this country, we like private industry to stay private, and we want its interactions with the federal government to be as minimal as possible unless the company needs a bailout; otherwise, just forget it.”

READ ALSO: 7 Stocks Highlighted by Jim Cramer in the Lightning Round and Jim Cramer Recently Shed Light on These 13 Stocks.

However, Cramer emphasized that the current administration has not always followed that traditional approach. He noted that many people reacted strongly to President Trump’s decision, especially over the 15% equity stake tied to the Chinese semiconductor transaction. He noted that critics questioned the appropriateness of the federal government stepping directly into business affairs, arguing that it conflicted with free-market principles. Cramer mentioned that some even went so far as to label the move extortion.

Still, Cramer argued that this kind of government action is not exactly new. He reminded viewers that the United States government has taken ownership positions in private companies in the past and that Trump’s actions, while aggressive, fall in line with previous interventions.

“The bottom line: Wring your hands all you want, but this chip deal is good for the taxpayer and good for NVIDIA and AMD. If the chip makers aren’t complaining, why should we?”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on August 11. 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 Discussed 12 Stocks

12. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 106

ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer recently discussed. A caller asked for short-term and long-term guidance for the stock. In response, Cramer said:

“Okay, ServiceNow short term is being hurt by a call out of Melius, and that’s by Ben Reitzes, who was saying that these software as a service companies are going to be under pressure because their seat models can be hurt by AI. I think, longer term, ServiceNow has really good AI, and it would not be a stock that I would want to bet against. So, ServiceNow, longer term, I think is fine. Shorter term, I think it’s going to be under pressure.”

ServiceNow, Inc. (NYSE:NOW) provides cloud-based workflow solutions through its AI-powered Now Platform. The company offers tools for automation, analytics, app development, and service management. Cramer discussed the company stock in a June episode as he stated:

“Alright, ServiceNow. Well, we love ServiceNow, okay? ServiceNow is, you know, we’ve got corporate software that also is AI, okay. It’s enterprise software with AI.”

11. Root, Inc. (NASDAQ:ROOT)

Number of Hedge Fund Holders: 23

Root, Inc. (NASDAQ:ROOT) is one of the stocks Jim Cramer recently discussed. During the lightning round, a caller asked about the company, and Cramer replied:

“I know Root… And by the way, Lemonade is the one that I’m looking at for, when it comes to insurance. Lemonade is your play. And by the way, I think Lemonade is disrupting the industry to the point where we’re seeing lower rates, possibly. I know that because we’re seeing a lot of insurance companies talk about lower rates, including Berkshire Hathaway.”

Root, Inc. (NASDAQ:ROOT) provides auto and renters insurance through a direct-to-consumer model, mainly through its mobile app and website. The company reported its Q2 2025 results on August 6. It posted an EPS of $1.29, outperforming estimates by $0.61. The revenue of $383 million beat estimates by $44.55 million and was up 32.4% year-over-year. The company’s CEO and Co-Founder, Alexander Edward Timm, made the following comments at the conference call:

“These results are the culmination of consistent execution of our strategy, allowing us to create great experiences and great prices for our customers. Beyond financial results, we continue to advance our strategy, releasing our next-gen pricing model, continuing to rapidly grow our partnerships channel and making meaningful progress on our path to becoming national. Building AI and Machine Learning to better price insurance is the bedrock of our strategy. Our new pricing model substantially improves our risk selection, increasing customer lifetime values by 20% on average.

This impact could be even larger in some states and allows us to grow faster, collect more data, and continue to build even more predictive models.”