On Wednesday’s episode of Mad Money, host Jim Cramer discussed the current state of the economy into three distinct segments.
“We have three economies right now… Two of those are booming, although one shouldn’t be, and the third one is hurting badly, and it needs help right now… The first and the most exciting is everything connected to artificial intelligence and the data center.”
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Cramer began with what he described as the most dynamic segment: the economy surrounding artificial intelligence and data centers. He said that it is the most exciting development in the market and called it “the fourth industrial revolution.” He went on to say that there is no reason for concern regarding this part of the economy. Cramer referred to the second segment as “the so-called real economy,” which he said is not faring as well. He observed that it appears weak and added that it is difficult to assess fully due to a lack of up-to-date economic data caused by federal furloughs.
Nonetheless, Cramer warned that this area needs multiple interest rate cuts in order to recover. The third segment he discussed was the speculative side of the market, which he said resembles the final stages of the dot-com bubble. He emphasized that this portion of the economy “has to be stopped before its froth overwhelms everything else.”
“Here’s the bottom line: It’s these speculative stocks that are the real bubbles, not the AI plays. Yet, you’d never know if you listened to the bears, they conflate them all… These people aren’t there to help you anyway, so please stop taking them so darn seriously.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 8. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Recently Offered Insights on These 11 Stocks
11. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks Jim Cramer recently offered insights on. While discussing the stock, Cramer pointed out that the market behavior has shifted significantly. He said:
“The market didn’t use to operate this way, but times have changed. If you scrutinize the new low list, what do you see? It’s all the old safety stocks. What’s down a lot? How about Kimberly-Clark, down 2% today, nearly 9% for the year. How about Clorox, down 26% for the year. Campbell’s, that old story, down 27%… McCormick, it didn’t look like a terrible quarter when the spice company reported the other day, but the stock was slaughtered anyway. PepsiCo reports tomorrow. It’s got a 4% yield and a powerful activist firm trying to get that stock back in the plus column, but it’s still down more than 8% for the year. Then again, that’s a lot better than Conagra, down nearly 33%. Ouch. So there’s no safety in these stocks.”
PepsiCo, Inc. (NASDAQ:PEP) produces, markets, and distributes beverages and convenient foods, including snacks, cereals, dairy, and ready-to-drink products.
10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 19
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the stocks Jim Cramer recently offered insights on. When a caller asked about the stock, Cramer replied:
“Yeah, you see, SoundHound is a company that got, what happened is it got NVIDIA’s endorsement, and ever since then it’s been on fire. I say this, I say, it’s up a great deal. It’s not making money. I would take a little bit off tomorrow and then let the rest run.”
SoundHound AI, Inc. (NASDAQ:SOUN) provides voice artificial intelligence solutions that enable businesses to create conversational interfaces. The company’s technologies power real-time voice assistants, customer service tools, and smart device integrations. During the September 18 episode, a caller inquired about the stock, and Cramer replied:
“SoundHound, it’s a meme stock. You know, I don’t, I just am not into the meme, I mean, I’m willing to talk about the meme stocks forever, research the meme stocks forever, but own the meme stocks forever? No.”
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