Jim Cramer, host of Mad Money, said on Wednesday that the broader economy finally received some needed relief, as he commented:
“The regular economy got a little help today. It was the help it needed, a quarter-point rate cut from the Fed, which should immediately translate into lower borrowing costs for a variety of shorter-term loans, although not necessarily longer-term ones because those are set by the actual bond market. Still, we’ll take all the help we can get at a time when the consumer seems to be balking at larger purchases, vacations, even steak dinners because they fear they might lose their jobs, and costs have gone up so much because of inflation.”
READ ALSO: Jim Cramer Recently Talked About These 20 Stocks and Jim Cramer’s Recent Insights on These 24 Stocks.
Cramer added that the Fed’s rate cut will make conditions a bit easier for what he calls the “real economy.” However, putting on his “entrepreneur hat,” Cramer said that many businesses within the real economy have only themselves to fault for missing out on the surge in demand tied to the data center sector. He emphasized that a modest rate cut of a quarter point is not enough to save a company that has chosen the wrong business plan or has fallen behind in adopting a better one.
“Here’s the bottom line: This rate cut is great news for the so-called real economy that I keep telling you about; it’s down in the dumps. But as you can see from Caterpillar, the best-performing companies in the real economy are the ones that also have a ton of exposure to the data center economy.”
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 29. 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 Discussed These 14 Stocks
14. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 43
Bloom Energy Corporation (NYSE:BE) is one of the stocks Jim Cramer recently discussed. Cramer discussed the company’s recent solid performance, as he said:
“How about Bloom Energy? Now, I’ve been waiting for this dog to do something for years, seven years and nothing. Their solid oxide fuel cells never seem to catch on. Too expensive… They lost hundreds of millions of dollars. But you know what? They never gave up. Sure enough, Bloom’s now the industry standard on on-prem, clean non-combustible energy at the data center, and they can’t make the product fast enough. Last night, they reported a true blowout quarter. Stock shot up 18%. I’ll take those gains. And you know who made the most money? The believers. That’s who… I’m not saying you should bet everything on the next Bloom Energy or that you should own every uranium ETF. I just want you to do what I recommend in How to Make Money in Any Market: speculate wisely because it’s worth trying to participate in these huge gains as long as you limit it to no more than one position.”
Bloom Energy Corporation (NYSE:BE) develops and sells solid-oxide fuel cell systems that generate on-site power by converting fuels like natural gas, biogas, and hydrogen into electricity.
13. Datavault AI Inc. (NASDAQ:DVLT)
Number of Hedge Fund Holders: N/A
Datavault AI Inc. (NASDAQ:DVLT) is one of the stocks Jim Cramer recently discussed. Inquiring about the stock, a caller mentioned that they had invested in the stock at $0.31 and had been trading by buying on dips and selling on rallies. Cramer replied:
“But this thing is… you know, it’s losing money. It’s losing money hand over fist. I would take off, I would take off a little, let the rest run. Your cost basis has gotta come out right now. Three times your cost basis… then you can’t lose money. How about that?”
Datavault AI Inc. (NASDAQ:DVLT) provides data management and analytics solutions powered by high-performance computing and proprietary software. The company helps its clients navigate data ownership, privacy, and security. On October 29, it announced announced a definitive agreement to acquire API Media in December 2025, in an all cash transaction. API Media is a New-Jersey based company that provides audio-visual and IT services for major sporting events and enterprise clients. It will retain its brand while integrating Datavault AI Inc.’s (NASDAQ:DVLT) patented technologies.
12. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 67
Toast, Inc. (NYSE:TOST) is one of the stocks Jim Cramer recently discussed. A young investor inquired Cramer’s thoughts on the company, and asked if he would do anything with the position ahead of the company. In response, Cramer said:
“Wow, I mean, think about that. Now there’s some, that kid’s got horse sense. Alright, look, I think Toast is right now, it’s trading on the idea that the restaurants aren’t doing well. Not that Toast isn’t doing well, because Toast happens to be doing very well. And you’re right to be able to look at that company and make that judgment away from the restaurant business. I would be a buyer of Toast, but only after they report on November 4th.”
Toast, Inc. (NYSE:TOST) provides a cloud-based technology platform that supports restaurant operations through point-of-sale, payroll, supply chain, and accounting solutions. A caller inquired about the stock during the September 15 episode, and Cramer replied:
“You know, look, I’m glad you asked about this. I actually thought the quarter was excellent. I know there are a lot of doubters. I think that’s wrong, but the restaurant stocks have been very weak, and that’s why I think that Toast has been very weak. I’m advocating patience because it’s still a great stock and it’s still up a lot for this year.”
11. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the stocks Jim Cramer recently discussed. During the lightning round, a caller sought Cramer’s opinion on the stock, and he replied:
“I like Energy Transfer very much. I’ve gotta tell you, Enterprise Product Partners is the one I do recommend in How to Make Money in Any Market… Energy Transfer is an excellent company.”
Energy Transfer LP (NYSE:ET) provides energy transportation, storage, and processing services through networks of natural gas, crude oil, and NGL pipelines and facilities. During the September 5 episode, a caller inquired about the stock, noting that its price had remained stagnant. Cramer responded:
“It’s a premier natural gas play, pipeline. I think it’s sensational. I didn’t think that they were taking out too much debt. That’s not the case… You got it right.”
10. Otis Worldwide Corporation (NYSE:OTIS)
Number of Hedge Fund Holders: 47
Otis Worldwide Corporation (NYSE:OTIS) is one of the stocks Jim Cramer recently discussed. Cramer discussed the company’s earnings during the episode, as he commented:
“Is Otis Worldwide, the top dog in the elevator business, on the rise again? When this company last reported in July, the numbers were mixed, and the stock went down 12%. I wasn’t sure if that was right. This morning, though, Otis reported again, and the numbers were a lot more constructive. They delivered a slight revenue beat with a solid 5-cent earnings beat off a dollar basis.
Management also raised their midpoint of their full-year earnings forecast, which is why the stock rallied a couple of bucks today. People forget that this company makes most of its money from service and maintenance, so it’s less hostage to the broader global economy than you’d expect. Does that mean the stock can keep climbing? I know the company sure does believe so because they bought a ton of stock.”
Otis Worldwide Corporation (NYSE:OTIS) designs, manufactures, installs, and services elevators, escalators, and moving walkways for residential, commercial, and infrastructure projects.
9. Brinker International, Inc. (NYSE:EAT)
Number of Hedge Fund Holders: 52
Brinker International, Inc. (NYSE:EAT) is one of the stocks Jim Cramer recently discussed. Cramer discussed how the stock “got hit” after reporting its earnings, as he remarked:
“Coming in today, Brinker’s stock was down 30% from its highs, and that was after it reported this morning, and the stock got hit again, only finishing off 7.5%. Even though the company delivered a top and bottom line beat, Wall Street maybe didn’t love that management had some kind of difficult things to say about tariffs, margin pressure, how they’re getting hit hard by import duties on beef and shrimp. At the same time, the bulls didn’t have too much to hang their hats on because Brinker merely, well, they didn’t merely reiterate their full year forecast, I mean, I wanted something more than that. And now, well, let me just say, this stock was up huge coming in from last year.”
Brinker International, Inc. (NYSE:EAT) owns, operates, and franchises casual dining restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands.
8. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer recently discussed. While discussing the company, Cramer noted how AI has impacted the enterprise software stocks. He said:
“While this has been a great year for anything connected to AI, it’s been pretty darn awful for the enterprise software space. Because if there’s one thing that AI’s already good at, it’s writing the code that the enterprise software guys give you, and that’s why even the highest quality enterprise software companies have gotten slammed.
Take Cramer fave ServiceNow, which helps its customers automate all sorts of IT and back office jobs. Going into today’s close, this stock was down almost 24% from its all-time high in January. But here’s the thing, we haven’t seen any signs of artificial intelligence impacting their earnings. Tonight, ServiceNow reported another excellent set of numbers, 22% revenue growth, 56% earnings beat off a $4 and 26-cent basis. Even better, management raised nearly every line, every line of their full-year forecast.”
ServiceNow, Inc. (NYSE:NOW) provides cloud-based workflow solutions through its Now Platform, which integrates AI, automation, analytics, and low-code development tools.
7. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 66
DraftKings Inc. (NASDAQ:DKNG) is one of the stocks Jim Cramer recently discussed. A caller asked for Cramer’s opinion on the stock, and here’s what Mad Money’s host had to say:
“Well, look, I happen to like DraftKings very much. Now, the problem is obviously that the people are beginning to worry whether gambling again is honest. I think gambling is honest. I think Jason Robins is honest. I think there’s always going to be dishonesty in fraud. Wherever you go, you can’t game fraud. It does occur, and I just think that it’s just something that happens. But the DraftKings, if they get Texas, Florida, and California, wow, it’ll be terrific.”
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that provides online sports betting, fantasy sports, iGaming, and retail sportsbooks. In addition, the company develops gaming software and operates the DraftKings Marketplace that offers a digital collectibles platform.
6. Klarna Group plc (NYSE:KLAR)
Number of Hedge Fund Holders: N/A
Klarna Group plc (NYSE:KLAR) is one of the stocks Jim Cramer recently discussed. When a caller mentioned that they want to exit AXP, as they think that Stephen Squeri is “in over his head”, and invest in KLAR, Cramer commented:
“No, I won’t let you do that. I don’t think Squeri’s in over his head at all. I think he’s actually a, I think he, in his own way, is a genius. He’s figured out what younger people want… I reactivated my platinum card yesterday and… you know what, Squeri, he just figured it out. He makes us happy. I think he’s a very good executive. Klarna is fine, but Squeri, let’s just say, he’s figured it out.”
Klarna Group plc (NYSE:KLAR) is a technology-driven payments company that provides payment solutions, digital retail banking, and advertising services to consumers and merchants. Cramer highlighted the stock during the September 10 episode and said:
“So, how does Klarna’s valuation look now? Well, when the Klarna deal priced above the range of $40 per share last night, the company was being valued at just over 15 billion. With the stock opening in the 50s today, that was closer to 20 billion. After the pullback, it’s now valued at over 17 billion, slightly higher than what the venture capitalists were paying earlier this year. I gotta tell you, I kinda like Klarna at this price. I really do.
Using some back-of-the-envelope… let me give you these numbers: I’m expecting Klarna to put up $3.23 billion in sales this year, up 15% from last year. That was its growth rate in the first half, and I’m just kind of projecting it forward. I think that’s reasonable. Using that assumption, stock’s now selling for roughly 5.4 times this year’s sales. Okay, remember this… This is sales. The nice thing is that we have some good publicly traded analogs. Affirm, the best-known buy now, pay later outfit, trades at just under seven times sales. Sezzle, which is more of a second-rate player if you don’t mind, is right around the same level at 6.9 times sales.
Unlike Klarna, those two are profitable though, but Klarna is heading in the right direction. The bottom line: While Klarna roared right out of the gate, the stock hasn’t gone to an insane valuation yet. I think the numbers look good. So I think it can be bought at these levels, even as I make no secret about it, I’ve liked competitor Affirm and its creative CEO Max Levchin for ages. And even up here, I prefer Affirm to Klarna.”
5. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 51
Generac Holdings Inc. (NYSE:GNRC) is one of the stocks Jim Cramer recently discussed. Cramer noted that the company “got slammed” after reporting its quarter, as he stated:
“But then you take a look at Generac. Well, what do they do? They’re the maker of backup generators with some data center exposure, even though it’s clearly not enough because the stock got slammed today in response to a not-so-hot quarter. They even cut their forecast because, in the end, Generac’s core business is making generators you can use during a natural disaster, and there haven’t been enough natural disasters.
Unlike CAT, these guys did an all-in pivot to become a more secular growth story. They didn’t bet big enough on the data center. That wasn’t smart. A few companies in America were like CAT. Most were like Generac.”
Generac Holdings Inc. (NYSE:GNRC) manufactures and distributes energy technology products, including residential and industrial generators, battery storage systems, smart home solutions, and outdoor power equipment.
4. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 76
Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer recently discussed. Cramer highlighted the company’s “star divisions” during the episode. He commented:
“Today, Caterpillar reported. The stock shot up more than 11%. Why? You know why? Because previous CEO Jim Umpleby decided that he was going to make that company perennially cyclical, incredibly boom and bust into a secular growth story by emphasizing turbines and power equipment. And what were the star divisions? Turbines and power equipment. And that’s how you get a stock higher. The division that provides power, amazing, the one that he presided over. Sure, you need CAT construction equipment to build a ton of things, but you especially need power for the data center. Umpleby saw it coming. That man’s a visionary.”
Caterpillar Inc. (NYSE:CAT) manufactures and sells construction, mining, and energy equipment, including engines, turbines, and locomotives. Additionally, the company provides financial services, fleet management, parts and services.
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer recently discussed. Cramer highlighted the reason why the stock got hit despite reporting solid earnings, as he commented:
“Microsoft reported what I thought was a truly strong quarter. Not only did Microsoft deliver a top and bottom line beat, but their all-important cloud infrastructure division, Azure, saw its growth accelerate to 40%. That said, the stock still got hit in after-hours because I think it came in too hot. Remember, Microsoft shares caught fire earlier this week after their deal with OpenAI gave them that 27% stake in the for-profit part of the company. If it hadn’t already run, I think Wall Street would’ve been fine. It might’ve even been a bit of a yawner, frankly.”
Microsoft Corporation (NASDAQ:MSFT) develops and supports software, cloud services, devices, and solutions, including Microsoft 365, Azure, Xbox, and LinkedIn. The company’s tools and services improve productivity, computing, security, and digital experiences.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer recently discussed. Cramer discussed the market’s reaction to the company’s earnings, as he stated:
“And Meta, wasn’t it just a glorified advertising site? Well, they embraced AI like none other, spending a fortune… Now, the one that is trickiest is Meta. Even though the revenue was much better than expected, their earnings took a huge temporary hit from the president’s One Big Beautiful Bill Act, led to a colossal earnings miss. But according to Meta, this is a one-time thing, and their tax bill will be a heck of a lot lower. If not for the one-time hit, well, they would’ve earned $7 and 25 cents per share.
That’s much better than $6 and 72 cents that Wall Street was looking for. At the same time, they raised their full-year revenue forecast, but they also raised their full-year capital expenditure forecast by even more… Therefore, not as good as what Google did. They’re spending more than what Google did, and that’s what people are thinking about… I’ve gotta tell you, if you throw in the fact that the stock was up 28% going into the quarter, and you can’t understand why the stock got clobbered after hours, it was up too much. I think it’s a reaction.”
Meta Platforms, Inc. (NASDAQ:META) develops products that enable people to connect and communicate through social media, messaging apps, and virtual, augmented, and mixed reality devices. The company’s products include Facebook, Instagram, Messenger, Threads, WhatsApp, and reality hardware and software products.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer recently discussed. Cramer once again showed regret as the Charitable Trust sold the stock a while ago. He commented:
“Alphabet shot the lights out with the revenue growth accelerating for the third straight quarter to 16%, much better than expected, and the company earning $2 and 87 cents. Wall Street was only looking for $2 and 27 cents, and that’s why that stock is flying after hours. You know, I think it’s terrific regretfully, because I told you the trust sold it. When you drill down, Alphabet’s still firing on all cylinders. Their core search business is up 15%. No cannibalism from Gemini there. The generative AI platform is doing so well.
At the same time, Google Cloud revenue beat expectations by over half a billion dollars, up 34%. Fantastic. Margins were better than expected when you back out $3.5 billion one-time charge, European fine. And Alphabet’s capital expenditures were in line. It was really good, and I gotta tell you, it’s going to be the star. It’s going to be the one that people are going to think about now for the benchmark of these stocks. Even the amount of money that they spent didn’t derail anything. They’re on fire, just plain out on fire.”
Alphabet Inc. (NASDAQ:GOOGL) provides digital products and platforms including Search, YouTube, Android, and Google Play, and offers enterprise solutions.
While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
