Jim Cramer Revealed His Big AI Investing Fear & Discussed These 20 Stocks

In this article, we will discuss: Jim Cramer Revealed His Big AI Investing Fear & & Discussed These 20 Stocks. For more stocks, you can head to Jim Cramer Revealed His Big AI Investing Fear & & Discussed These 5 Stocks.

In a recent tweet, Jim Cramer discussed the skepticism surrounding the merits of aggressive data center investment. Nowhere else was this skepticism clearer than in a report by investment bank Goldman Sachs. The bank’s James Covello pointed out in a recent report that almost all of the money being spent on AI was going to NVIDIA, while the hyperscalers, such as Microsoft and Meta, are seeing more modest returns. He adds that when it comes to investing, the “FOMO has proven a stronger incentive than poor stock performance as hyperscalers have prioritized being involved in the AI arms race over their current shareholders.”

In his tweet, Cramer also appeared to be exhibiting fear. For him, this is the fear of becoming irrelevant:

“The skepticism remains so thick about the hyper-scaler data spend. But if you spend time with all of them you realize that that the wave of money that is going to come in to those who spend will be immense with a huge return over multiple years. And those who don’t spend.. risk irrelevance”

Our Methodology

For this article, we compiled a list of stocks that Jim Cramer discussed during the episode of Squawk on the Street aired on May 8th and tweeted about. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

20. HubSpot, Inc. (NYSE:HUBS)

Number of Hedge Fund Holdings in Q4 2025: 56

HubSpot, Inc. (NYSE:HUBS) is a software company that provides customer relationship management products and services. The shares are down by 71% over the past year and by 49% year-to-date. Cannacord Genuity discussed the firm on April 26th as it kept a Buy rating. The financial firm outlined that HubSpot, Inc. (NYSE:HUBS) had a solid strategy to operate in the artificial intelligence sector, as evidenced by the firm’s Spring Spotlight product update and its investor webinar. Earlier, on the 14th, Needham set a $300 share price target and maintained a Buy rating for HubSpot, Inc. (NYSE:HUBS)’s shares. Among the factors that the firm discussed included self service facilities offered by the firm. Cramer discussed the software company in the context of agentic AI:

“But Hubspot, so they actually have the agents doing more. . .and the agents are not able to close, the way the humans can. We have now found something the agents are inferior at. They’re good at leads but they can’t close.”

GMO discussed HubSpot, Inc. (NYSE:HUBS) in its fourth quarter 2025 investor letter:

“One of the worst performers in the group for the year, which averaged an 80-bp short position and added 0.4% to absolute performance, was HubSpot, Inc. (NYSE:HUBS). If you are anxious to know what severe economic challenges HubSpot faced to send its shares crashing more than 40%, we will have to disappoint you—HubSpot grew its customers and revenues by broadly 20% during the year without compromising margins. Quite simply, high expectations for huge earnings beats meant that even strong results were viewed as insufficient, leading to sharp sell-offs. This is a key reason why we are not obsessing over identifying the catalyst for future growth stock underperformance—the weight of expectation built into valuations will inevitably lead to investor disappointment at some point.”

19. Affirm Holdings, Inc. (NASDAQ:AFRM)

Number of Hedge Fund Holdings in Q4 2025: 63

Buy now, pay later products and services provider Affirm Holdings, Inc. (NASDAQ:AFRM) is one of Jim Cramer’s top stocks in the space. The shares are up by 22% over the past year and are down by 11% year-to-date. TD Cowen discussed the firm on March 31st as it reduced the share price target to $80 from $95 and kept a Buy rating on the stock. The firm pointed out that its coverage of Affirm Holdings, Inc. (NASDAQ:AFRM) came as part of a broader analysis of the consumer finance sector. Cramer discussed the firm in April on Mad Money and praised it for having democratized the consumer finance sector. A couple of days later, Baird discussed Affirm Holdings, Inc. (NASDAQ:AFRM)’s shares on April 10th. The financial firm outlined that it expected the company to post strong third-quarter earnings as it reiterated a Neutral rating with a $55 share price target. In this appearance, Cramer discussed Affirm Holdings, Inc. (NASDAQ:AFRM) in the context of the use of AI in business operations:

“But Affirm is doing what Jensen Huang says to do, okay. Affirm is saying, Max Levchin is saying, listen, we’re not hiring, we just have people far more productive.”

18. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)

Number of Hedge Fund Holdings in Q4 2025: 224

Contract chip manufacturing giant Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)’s shares are up by 110% over the past year and by 23% year-to-date. Despite the fact that the firm is one of the most important companies in the artificial intelligence ecosystem, Cramer doesn’t discuss the stock as often as he discusses other firms. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)’s importance in the AI industry is through its leading-edge chip manufacturing processes, which allow it to make chips for AI giant NVIDIA and other firms. The CNBC TV host previously discussed Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) in late April when he didn’t hold back with his praise. Calling the firm “terrific,” Cramer added that the company was in a “good situation.” Since his remarks, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)’s shares are down by 2.7%. In this appearance, he discussed the firm’s April sales, which grew at 17.5% – a rate which was the slowest in six months:

“. . .Taiwan Semi, it looks like they don’t even a bottleneck. They did not have a great month, slow.”

Wedgewood Partners discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a top contributor to portfolio performance in the first quarter. Revenues grew +25%, and the Company guided to accelerating revenue growth to +30% in 2026 as demand for compute accelerators for AI applications continues to ramp unabated. In addition, the Company recently reported that March revenue was up +45% year over year, +31% month over month, and +35% year to date. The semiconductor customer base has evolved to the point that the Company increasingly works directly with non-traditional end customers, particularly cloud service providers, to develop custom silicon. This helps the Company better match supply with demand, so despite strong revenue growth, the Company has kept capital expenditures relatively in line with revenue growth. In addition, the Company is raising prices as utilization rates at leading-edge nodes continue to climb. We trimmed positions because our holdings exceeded 10% of portfolios. Taiwan Semiconductor Manufacturing Company remains a top holding.”

17. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holdings in Q4 2025: 264

Even though its shares have remained lackluster in 2026, Cramer is nevertheless one of NVIDIA Corporation (NASDAQ:NVDA)’s biggest fans. The stock is up by 78% over the past year and by 16% year-to-date. Goldman Sachs discussed the firm on May 7th, as it kept a Buy rating and a $250 share price target. The bank’s coverage came ahead of NVIDIA Corporation (NASDAQ:NVDA)’s upcoming earnings report as Goldman remarked that it expected investors to focus on further upside to the firm’s $1 trillion data center revenue guidance and potential tailwinds for its CPU business stemming from agentic AI adoption. Agentic AI and its impact on CPUs has become a hot topic ever since Intel’s latest earnings saw the firm tout the resurgence of the CPU in the AI arms race due to usage by agents. In this appearance, Cramer compared NVIDIA Corporation (NASDAQ:NVDA) to OnlyFans:

“We did a little revenue per share, of the companies, and NVIDIA’s second, per person. . .in tech, NVIDIA’s first, NEtflix is second, Apple’s third, Meta’s fourth, five is Alphabet. . .the only company whose bigger is a company called Only Fans!. . .Is that like a bar stool? 37.6 million per employee, that’s something!”

16. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holdings in Q4 2025: 86

Cybersecurity firm Palo Alto Networks, Inc. (NASDAQ:PANW)’s shares are up by 11% over the past year and by 19.8% year-to-date. Freedom Capital discussed the firm on March 11th as it trimmed the share price target to $210 from $230 and kept a Buy rating on the stock. The financial firm discussed Palo Alto Networks, Inc. (NASDAQ:PANW) after the fiscal second quarter 2026 earnings report as it pointed out that successful acquisition execution and platform integration were among the factors that led to a strong quarter. Cramer has been quite optimistic about the cybersecurity sector for more than a year. In 2025, he recommended investing in the sector due to tailwinds from growing AI use and data security, and the threats to American cybersecurity infrastructure. In this appearance, he discussed the performance of the iShares Tech Software ETF and Palo Alto Networks, Inc. (NASDAQ:PANW)’s role in it:

“The index [IGV] is so flawed, that you get Palo Alto as one of the largest companies, but Palo Alto is a cybersecurity company. . .”

15. Becton, Dickinson and Company (NYSE:BDX)

Number of Hedge Fund Holdings in Q4 2025: 45

Becton, Dickinson and Company (NYSE:BDX) is one of the largest medical devices and laboratory equipment providers in America. Its shares are up by 6.9% over the past year and are down by 3.8% year-to-date. Piper Sandler discussed Becton, Dickinson and Company (NYSE:BDX)’s shares on April 17th as it reduced the share price target to $159 from $170 and kept a Neutral rating on the stock as it adjusted its estimates to account for the firm’s latest guidance. On the 14th, RBC Capital had reduced the share price target to $175 from $195 and maintained a Sector Perform rating. The bank remarked that Becton, Dickinson and Company (NYSE:BDX) was not at the risk of demand disruption, as evidenced by intra-quarter checks. Cramer has discussed healthcare stocks quite a bit recently, and in this appearance, he insisted sticking with Becton, Dickinson and Company (NYSE:BDX) despite the lackluster share price performance:

“I had Tom Polen, the CEO of Beckton Dickinson. And that stock is at an historical low. A low, healthcare, you can’t give these stocks away.”

14. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holdings in Q4 2025: 84

Pharmaceutical firm AbbVie Inc. (NYSE:ABBV)’s shares are up by 11% over the past year and are down by 9% year-to-date. Evercore ISI was out with optimistic coverage for the firm on May 4th as it raised the share price target to $236 from $232 and kept an Outperform rating on the stock. Earlier, Bank of America had bumped AbbVie Inc. (NYSE:ABBV)’s share price target to $234 from $226 and upgraded the rating to Buy from Neutral. The firm’s immunology business was part of BofA’s coverage, as the bank remarked that concerns about competitive pressures were excessive. The bank also discussed AbbVie Inc. (NYSE:ABBV)’s pipeline to remark that it had one of the best pipelines among large-cap peers. Cramer has discussed the company several times over the past couple of months. For instance, on April 30th, he remarked that AbbVie Inc. (NYSE:ABBV)’s immunology pipeline could be rivaled only by Eli Lilly. In this appearance, he defended the firm and mentioned the immunology portfolio again:

“The companies that have good stuff for autoimmune, like Abbvie, Abbvie is so cheap. Look at how cheap that is. And they had a great quarter. They crushed them.”

13. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holdings in Q4 2025: 137

Memory chip manufacturer Micron Technology, Inc. (NASDAQ:MU) is one of the hottest stocks in the AI era. The shares are up by a whopping 690% over the past year and by 143% year-to-date. Its memory chips are used in AI GPUs, which provides the firm with direct exposure to the demand boost from the AI buildout. Additionally, Micron Technology, Inc. (NASDAQ:MU)’s role in the industry is also bolstered by the fact that it is one of just three companies that are capable of making the advanced memory chips that can be used in AI GPUs. Mizuho discussed the firm on April 6th as it raised the share price target to a strong $740 from $545 and kept an Outperform rating on the stock. Cramer has discussed Micron Technology, Inc. (NASDAQ:MU) continuously since the firm started to prosper and praised its CEO for being modest. In this appearance, he briefly remarked on the firm’s market strength:

“There stuff’s in short supply, their able to raise price. Think about that. You think Conagra can raise price? You think General Mills can raise price?”

12. Cloudflare Inc. (NYSE:NET)

Number of Hedge Fund Holdings in Q4 2025: 70

Cybersecurity services provider Cloudflare Inc. (NYSE:NET)’s shares are up by 24% over the past year and are down by 4.7% year-to-date. May 8th was an eventful day for the firm as the shares closed a whopping 23.6% lower. The dip occurred after the firm reported its fiscal first quarter earnings report, which saw Cloudflare Inc. (NYSE:NET)’s $0.25 in earnings and $640 million in revenue beat analyst estimates. However, the firm also announced in a blog post that it was cutting headcount by 1,100 workers and explained that efficiencies stemming from agentic artificial intelligence use were driving efficiency up. Cramer discussed the headcount reduction and its impact on Cloudflare Inc. (NYSE:NET)’s share price performance:

“I’ll give you Cloudflare then, how about that, you like that? Cloudflare. . .he’s [CEO] talking about how he’s looked it over, he’s looked at what AI can do, he realized that there’s some people who may not be as valuable. AI could do a lot more. Look he’s a very good businessperson. . .it read a little ill advised in the way that Mathew wrote it. Which was like, we had the best quarter. . .but we have to let people off. We’re used to laying people off when things are troubled, now we’re laying people off when things are good.”

“But you know that a layoff by Mathew Prince, who’s a very serious practitioner of the game, says, look we’re gonna make even more money than you want. And yet it’s greeted, as if he’s not doing well. He is doing well and the letter’s right.”

Vision Capital Fund discussed Cloudflare, Inc. (NYSE:NET) in its third quarter 2025 investor letter:

“Separately, we added a new position in Cloudflare Inc (NYSE: NET) in September (see memo). Cloudflare is the dominant connectivity cloud offering networking and security software as a service (SaaS). Cloudflare offers over 60 products that enable businesses to connect and protect external-facing and internal systems across application services, network services, and zero-trust services, which its customers increasingly want to consolidate.

Cloudflare’s reverse proxy service is used by 80% of websites, and 20% of the internet goes through it. Today, more websites are using Cloudflare than all traditional CDNs combined (24.5% for web servers and 14.7% for DNS servers). It is Cloudflare’s reverse proxy that allows it to sit in front of its customers’ web servers, allowing it to provide a wide and growing range of services that increase the security, performance, and reliability of its customers…” (Click here to read the full text)

11. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holdings in Q4 2025: 202

Broadcom Inc. (NASDAQ:AVGO) is one of the largest semiconductor companies in the world. Its role in the AI market is defined through its ability to design custom AI chips that can share the workloads with NVIDIA’s advanced accelerators. Broadcom Inc. (NASDAQ:AVGO)’s shares are up by 80% over the past year and by 20.6% year-to-date. Citi discussed the firm on May 12th as it raised the share price target to $500 from $475 and kept a Buy rating. The bank remarked that Broadcom Inc. (NASDAQ:AVGO) could post strong results for its April quarter as it benefits from stable AI demand. Citi also discussed the custom AI chip market and remarked that Broadcom Inc. (NASDAQ:AVGO) was in discussion with three new customers for the products. Cramer, who regularly praises the firm’s CEO, kept up with the praise in this appearance as well:

“Cause I think that he is one of the greatest business people of our time. He’s just not promotional. I wouldn’t bet against Hock Tan.”

10. The Wendy’s Company (NASDAQ:WEN)

Number of Hedge Fund Holdings in Q4 2025: 36

The Wendy’s Company (NASDAQ:WEN)’s shares were on Bank of America’s radar on April 24th as it reduced the share price target to $7 from $8 and kept an Underperform rating. The coverage came ahead of the first quarter earnings cycle for the restaurant industry. On May 8th, The Wendy’s Company (NASDAQ:WEN) reported its first-quarter earnings. The firm’s revenue and earnings beat estimates for the quarter. Earlier in the year, JPMorgan had discussed the firm on February 23rd. It also lowered the price target to $7 from $9 and kept a Neutral rating. The bank remarked that The Wendy’s Company (NASDAQ:WEN) was facing operational problems but added that management was committed to solid execution. Cramer discussed the earnings:

“[When asked about Sweetgreen and Wendy’s latest earnings] Okay people actually said that Sweetgreen had a good April. Unbelievable, they’re taking it up. It’s up 6.5. These are the two that a lot of people have said lookout, these companies are in grave financial trouble. This may have been the quarter where they actually distinguished themselves from others.”

9. Sweetgreen, Inc. (NYSE:SG)

Number of Hedge Fund Holdings in Q4 2025: 31

Fast food restaurant company Sweetgreen, Inc. (NYSE:SG)’s shares are down by 58% over the past year and by 6% year-to-date. As per The Fly, RBC Capital discussed the firm on February 27th as it cut the share price target to $7 from $8. The bank remarked that Sweetgreen, Inc. (NYSE:SG)’s same-store sales forecast for fiscal year 2026, provided during its fourth quarter earnings, was below analyst estimates. RBC added that the restaurant company is aiming to accelerate its performance this year by focusing on value. Earlier, on January 28th, Goldman Sachs had increased Sweetgreen, Inc. (NYSE:SG)’s share price target to $5.6 from $5 and kept a Sell rating on the stock. The bank commented that the firm could benefit from tax cuts, tariff relief, and other tailwinds. Cramer discussed Sweetgreen, Inc. (NYSE:SG)’s latest earnings report:

“Okay people actually said that Sweetgreen had a good April. Unbelievable, they’re taking it up. It’s up 6.5. These are the two that a lot of people have said lookout, these companies are in grave financial trouble. This may have been the quarter where they actually distinguished themselves from others.

“Now Sweetgreen it’s not really known as a company that has made a lot of money. Perhaps because it’s never made any money.”

8. Texas Roadhouse, Inc. (NASDAQ:TXRH)

Number of Hedge Fund Holdings in Q4 2025: 45

Texas Roadhouse, Inc. (NASDAQ:TXRH)’s are down by 3.6% over the past year and are up by 7% year-to-date. Over the month, the stock has shown significant momentum as it is up by 12.9%. The shares closed 12% higher on May 8th after the firm’s first-quarter earnings. The results saw Texas Roadhouse, Inc. (NASDAQ:TXRH) post $1.63 billion in revenue and $1.87 GAAP earnings per share to miss analyst revenue estimates of $1.64 billion and beat the earnings estimates of $1.79. Ahead of the earnings, Bank of America discussed the firm on March 11th as it reiterated a Buy rating and a $216 share price target. Earlier, TD Cowen had set a $215 share price target for Texas Roadhouse, Inc. (NASDAQ:TXRH)’s stock on March 5th. Cramer discussed the firm several times last year and warned that it was suffering from high beef prices. In this context, his latest remarks are telling:

“I’m gonna give you the one that I thought was the most exciting one. And it’s Texas Roadhouse. They saw inflation coming down. It’s up 22 dollars. And, what happened to Texas Roadhouse? The CFO said, that they believe, that there’s finally demand destruction for beef.”

7. Airbnb Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holdings in Q4 2025: 80

Hospitality firm Airbnb Inc. (NASDAQ:ABNB)’s shares are down by 1.8% over the past year and are up by 1.8% year-to-date. Wells Fargo discussed the firm on April 1st as it raised the share price target to $136 from $133 and kept an Equal Weight rating. The bank commented that Airbnb Inc. (NASDAQ:ABNB) could experience strong operating momentum and added that the macroeconomic environment will continue to influence the firm’s performance. Mizuho raised Airbnb Inc. (NASDAQ:ABNB)’s share price target to $175 from $156 and kept an Outperform rating after the firm’s fourth quarter earnings report. Cramer, on the other hand, discussed the first quarter earnings, which saw Airbnb Inc. (NASDAQ:ABNB)’s $2.68 billion in revenue and $0.26 in earnings per share beat analyst revenue estimates of $2.62 billion and miss the earnings estimates of $0.29:

“By the way, AirBnb, I was quite happy with it because they did have mideast problems. . .yeah AirBnb that was a pretty good quarter.”

Artisan Value Fund discussed Airbnb, Inc. (NASDAQ:ABNB) in its fourth quarter 2025 investor letter:

“We added two new names in Q4: Airbnb, Inc. (NASDAQ:ABNB) and Union Pacific (UNP). Our only sale was Fiserv. Airbnb is an online marketplace for lodging, connecting hosts with travelers globally. Airbnb’s stock has been under pressure due to moderating growth expectations, especially as the US is no longer in hyper-growth mode, concerns about a stretched consumer, tough comparisons following the Paris Olympics and skepticism around newer initiatives such as experiences and services. Some investors also fear AI-driven disintermediation, despite limited evidence. Airbnb is a category creator with exceptional brand strength—~90% of bookings are direct and unaided. Its global, hyper-local marketplace benefits from a powerful supply-demand flywheel, deep review history and trusted customer service. Ongoing quality initiatives have improved guest satisfaction and reinforced the moat, while expansion in international markets and major global events support long-term growth. Airbnb’s business economics and financial strength are well above average. The company operates an asset-light model, with high gross margins, high returns on invested capital and strong free cash flow. Airbnb has a large net cash position, earns meaningful interest income on its float and has steadily reduced dilution while aggressively repurchasing shares. At current levels, expectations embed conservative growth assumptions. With consensus numbers, downside risk appears limited, in our view, while any reacceleration in growth and operating leverage could drive meaningful upside.”

6. DraftKings Inc. (NASDAQ:DKNG)

Number of Hedge Fund Holdings in Q4 2025: 72

Sports betting platform DraftKings Inc. (NASDAQ:DKNG)’s shares are down by 34% over the past year and by 30% year-to-date. Argus cut the firm’s rating to Hold from Buy on March 12th as it discussed several factors, such as customer acquisition costs and market share. Argus warned that DraftKings Inc. (NASDAQ:DKNG) appeared to be facing high acquisition costs and added that it was also losing market share in the US iGaming market. The coverage came after Benchmark had reiterated a Buy rating and a $29 share price target for DraftKings Inc. (NASDAQ:DKNG) on March 3rd as it discussed the firm’s platform monetization. Bernstein reiterated an Outperform rating and raised the share price target to $30 from $28 on the 5th.  Tehe financial firm outlined that DraftKings Inc. (NASDAQ:DKNG) could grow its market share by expanding into previously untapped regions. Cramer commented on the recent earnings report and the firm’s CEO’s remarks:

“Look when I had Jason on, we’re talking about Jason Robins the CEO. . .this was the house doing well, talking about the prediction markets doing well, this was quite a break, say, from Flutter. That was something, wasn’t it?”

Click to continue reading and see Jim Cramer Revealed His Big AI Investing Fear & Discussed These 5 Stocks.

Disclosure: None. Follow Insider Monkey on Google News.