In this article, we will discuss: Jim Cramer Revealed His Big AI Investing Fear & Discussed These 5 Stocks. For more stocks, you can head to Jim Cramer Revealed His Big AI Investing Fear & Discussed These 20 Stocks.
5. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holdings in Q4 2025: 79
Flutter Entertainment plc (NYSE:FLUT) is a sports betting platform provider. Its shares are down by 60% over the past year and by 56% year-to-date. Moffett Nathanson discussed the firm on April 24th as it cut the rating to Neutral from Buy and the share price target to $127 from $170. While admitting that the downgrade came late, the financial firm remarked that the recent weakness in the stock meant that the shares looked attractive. Truist had cut Flutter Entertainment plc (NYSE:FLUT)’s share price target to $140 from $160 and kept a Buy rating on the shares. Truist’s coverage came as part of a broader adjustment of the gaming sector. It remarked that the sector was seeing strength in regional players while others were struggling. Flutter Entertainment plc (NYSE:FLUT)’s shares slid after its earnings, and Cramer discussed the movement:
“Look when I had Jason on, we’re talking about Jason Robins the CEO [of DraftKings]. . .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?”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holdings in Q4 2025: 169
Even though consumer electronics giant Apple Inc. (NASDAQ:AAPL) has lost its place as the world’s most valuable company to NVIDIA, it nevertheless remains one of Cramer’s top stocks. The shares are up by 39% over the past year and by 9% year-to-date. Evercore ISI discussed the firm on May 7th as it reiterated an Outperform rating and a $330 share price target. It discussed Apple Inc. (NASDAQ:AAPL) in detail and outlined that despite having a robust supply chain, trends in AI had reduced its leverage. Another note came from Wedbush, which raised the share price target to $400 from $350 and discussed the firm’s AI services. As per Wedbush, Apple Inc. (NASDAQ:AAPL) will be able to monetize AI services and generate as much as $15 billion in incremental revenue. Cramer discussed the Wedbush coverage and didn’t find it interesting:
“He’s talking about how it’s finally going, when they have their big developers conference you’re going to see, here it is, the AI time has come, price target to 400. Now I didn’t think there was anything here that much other than the fact that he likes Ternus.”
3. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holdings in Q4 2025: 85
Optical connectivity equipment manufacturer Corning Incorporated (NYSE:GLW)’s shares are up by 324% over the past year and by 123% year-to-date. Several analysts have discussed the firm recently. For instance, Morgan Stanley raised the share price target to $140 from $127 and kept an Equal Weight rating. The bank commented that Corning Incorporated (NYSE:GLW) could benefit from growing interest in the optical telecommunications sector. Bank of America also raised the share price target, as it bumped it to $186 from $155 and kept a Buy rating. As for Cramer, he has been optimistic about Corning Incorporated (NYSE:GLW) since the second half of 2025. The CNBC TV host’s initial enthusiasm stemmed from the firm’s partnership with Apple. Then, amidst the ongoing AI build out, he continuously remarked that Corning Incorporated (NYSE:GLW) could replace copper in data centers with glass. In this appearance, Cramer briefly mentioned the firm’s CEO:
“Remember he’s on the board of Amazon. His partners are Apple, the [inaudible] glass at Harrodsburg, Kentucky. . .”
2. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holdings in Q4 2025: 60
The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that operates in the digital advertising space. Its shares are down by 74% over the past year and by 46% year-to-date. UBS discussed the firm on April 21st as it reiterated a Buy rating on the shares. The bank commented that The Trade Desk, Inc. (NASDAQ:TTD) could benefit as macroeconomic pressures on advertising budgets ease. Another factor that the financial firm discussed in its coverage was the upcoming midterm elections, which it believes can benefit the digital advertising industry. Cramer discussed the competitive environment that The Trade Desk, Inc. (NASDAQ:TTD) is operating in:
“And the one that really dazzles me is Trade Desk. You have an insider, Jeff Green, he bought a 148 million dollars worth of stock between twenty three forty nine and twenty five o eight, here it is, after the quarter, down 21 and a half. And this is because they’re up against Walmart and Amazon in advertising. Google and Meta in automated spend. They’ve got some of the most powerful opponents. This was a one time high flyer, I just urge people to recognize that there are misses as well as wins in this space.”
Saga Partners discussed The Trade Desk, Inc. (NASDAQ:TTD) in its Q1 2026 investor letter:
“The Trade Desk, Inc. (NASDAQ:TTD) provides a useful example of how I think through those issues in practice, and I will return to it later in the letter. Its stock price drawdown reflects not only the broader market response to recent headline risks, but also company-specific concerns about the business and its outlook.
A steep decline in a stock price can reflect a real decline in business value, but it does not automatically mean something is broken or permanently impaired. Rather, it is a prompt to reexamine the thesis and ask whether the market’s criticism is correct, exaggerated, or mistaken in light of the business’s underlying economics and competitive dynamics.
The clearest current example in the Saga Portfolio is The Trade Desk, which is facing the greatest market skepticism and has experienced one of the largest drawdowns among our holdings. The Saga Portfolio first bought shares in 2017 based on the thesis that programmatic ad buying would grow, demand-side platforms (DSPs) would consolidate into a small number of scaled winners, and one of those winners would be an independent platform. More than eight years later, the main elements of that thesis have largely been borne out. The Trade Desk emerged as the leading scaled independent DSP, while revenue, earnings, and market value grew substantially…” (Click here to read the full text)
1. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holdings in Q4 2025: 91
McDonald’s Corporation (NYSE:MCD)’s shares are down by 10.8% over the past year and by 9% year-to-date. RBC Capital discussed the firm on May 9th as it lowered the share price target to $305 from $330 and kept a Sector Perform rating on the shares. The bank commented that McDonald’s Corporation (NYSE:MCD)’s first quarter results had beaten expectations by a strong margin on the back of market share gains among low-income customers. However, the bank added that the fast food retailer nevertheless remained vulnerable to macroeconomic weakness. Cramer also discussed the first-quarter earnings report and commented on McDonald’s Corporation (NYSE:MCD)’s earnings call:
“McDonald’s was such a disappointment, the second half of the conference call . . .”
The second half of the call saw management discuss inflationary pressures. For instance, here’s what McDonald’s Corporation (NYSE:MCD) CFO Ian Borden said in response to a question from Lauren Silberman at Deutsche Bank:
“Lauren, let me start, and I’m sure Chris may want to weigh in here. I think as I said earlier, April is isolated and discrete because of the lapping of Minecraft. We just wanted to be very clear to kind of call that out because it is quite a unique month. And as I said earlier, I think, we feel very confident about the lineup of activity and the underlying momentum of the business with all of the things we’re doing, including obviously, the moves we’ve made on value and affordability. I mean, I think the environment around us, as Chris talked about earlier, I think, continues to be challenging. But as also he said, it’s not new. And obviously, our focus is on what we can control. And as I said earlier, we think we’ve positioned the business well and well to win irregardless of the environment.
Obviously, higher gas prices, as you talked about earlier, are not going to be helpful, particularly for lower income consumers who are already, I think, under pressure. But we think we’re offering the right choice and affordability on the menu that’s going to appeal to consumers, whether across all income cohorts. And obviously, that’s always our goal.”
While we acknowledge the potential of MCD to grow, our conviction lies in the belief that some 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 MCD and that has 100x upside potential, check out our report about the cheapest AI stock.
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