In this article, we will discuss: Jim Cramer Rubbished Circular AI Deals & Commented On These 18 Stocks. For more stocks, you can head to Jim Cramer Rubbished Circular AI Deals & Commented On These 5 Stocks.
Even as some media reports claim that AI deals that see firms such as Amazon invest in providers like Anthropic only for the latter to procure computing services from the former are circular, CNBC’s Jim Cramer is adamant that they aren’t. After Amazon and Anthropic signed a deal where Amazon would invest $5 billion in Anthropic and Anthropic would procure $100 billion of AWS cloud services from Amazon, Cramer remarked that the deal was just a natural consequence of the structure of the AI industry:
“Amazon has compute so Anthropic has to pay for their compute and let them invest in the company. Circular deals are meant to puff up earnings. No earnings are being puffed here, believe me. However we are seeing a solid return on the data center now.. Jensen was right all along”
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 April 16th 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).
18. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holdings in Q4 2025: 169
Consumer electronics giant Apple Inc. (NASDAQ:AAPL) created quite a bit of a splash yesterday after it announced that CEO Tim Cook would be stepping down from his role. Cook, who took over from the firm’s renowned founder Steve Jobs, saw Apple Inc. (NASDAQ:AAPL) become one of the most valuable companies in the world. Bernstein discussed the firm on March 18th as it kept an Outperform rating and a $340 share price target for the company. It remarked that Apple Inc. (NASDAQ:AAPL) was currently expanding its product portfolio to cater to the needs of the lower end bracket as well. To wit, the firm’s incoming CEO, John Ternus, is currently the senior vice president of Hardware Engineering. Cramer has been one of Apple Inc. (NASDAQ:AAPL) ‘s strongest defenders and has repeatedly asserted that it is better to own the shares rather than to trade them. The CNBC TV host also praised current CEO Tim Cook after visiting Apple Inc. (NASDAQ:AAPL) supplier Corning’s factory in Kentucky last year. Naturally, he was lost for words as he learned about Cook’s departure and tweeted:
“Stunning: Tim Cook stepping down. This is tough news for those of us who have learned so much from him…
“Very hard.. Tim’s the best….”
17. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holdings in Q4 2025: 118
ServiceNow, Inc. (NYSE:NOW) is an enterprise workflow automation software firm. Its shares are down by 32% over the past year and by 30% year-to-date. Truist discussed the firm on April 15th as it lowered the share price target to $125 from $175 and kept a Buy rating on the stock. The financial firm discussed ServiceNow, Inc. (NYSE:NOW)’s role in enterprise AI rollout and outlined that its strong industry position can help the firm in this regard. Oppenheimer also discussed the firm on the same day. It cut the share price target to $130 from $175 and kept an Outperform rating. As per Oppenheiner, ServiceNow, Inc. (NYSE:NOW)’s Q1 update could do little to soothe investor fears about the impact of AI on the enterprise software market. The shares gained 9.9% between April 14th and 16th, and Cramer discussed the movement in the broader context of the enterprise software market:
“This is the complete revenge of the software companies, whether it be ServiceNow and Salesforce . . .And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off. . .Now David, all of these are linked. You and I knew that Blue Owl could make it. . .that it was a gating issue, liquidity issue.
“ServiceNow, 50% of it. . went to program, AI”
Lakehouse Global Growth Fund discussed ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:
ServiceNow is a category leading US software business that automates complex corporate workflows across IT, HR, and customer service. It acts as a deeply embedded digital utility for the world’s largest enterprises, with 80% of the G2000 as customers and industry leading renewal rates around 98% – underscoring the mission critical nature of their platform. Recently, ServiceNow has experienced a significant drawdown due to the “death of software” and AI “seat contraction” narrative.
However, its quarterly results released at the end of January came in ahead of both its own guidance and analyst expectations. Revenues grew 19.5% in constant currency terms to US$3.6 billion and operating profit grew 31% to US$1.1 billion. Crucially, the company directly countered the AI “seat contraction” / AI “loser” narrative by disclosing monthly active users on the platform grew 25% year-on-year and that their new AI solutions hit US$600 million in annual contract value (ACV). This exceeded their US$500 million target set for 2025 and management also noted they are on track to exceed their US$1 billion ACV target for 2026…” (Click here to read the full text)
16. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Holdings in Q4 2025: 312
Software giant Microsoft Corp (NASDAQ:MSFT)’s shares have struggled lately, as while they are up by 18% over the past year, they are down by 9.9% year-to-date. However, over the past month, the stock is up by 11% and since the 14th, it is up by 8.5%. On April 13th, Bernstein discussed Microsoft Corp (NASDAQ:MSFT) as it kept an Outperform rating and a $641 share price target. At the heart of the financial firm’s coverage was AI spending, as it outlined that the key question surrounding Microsoft Corp (NASDAQ:MSFT) wasn’t the idea of growth but its timeline. Bernstein added that the sentiment for the firm would be clearer if a growth timeline was able to assuage investor worries about the impact on its margins from AI spending. Cramer has also discussed Microsoft Corp (NASDAQ:MSFT) several times over the past couple of months as he has expressed worries and concerns about the Copilot platform. However, the CNBC TV host has now changed his mind about the firm:
“This is the complete revenge of the software companies. . .whether it be Oracle and of course, Microsoft. And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off.
“Let’s cut to the chase, David. This is about Microsoft and the soul, the soul of tech. This Microsoft Fights Back But Not The Way We Thought, the velvet glove. The velvet glove, not with a hammer. Going around, talking to people, saying kind things. Asking your opinion. Wanting to know what you think. . .I liked it. I bought it. . .
“[when told he wasn’t a believer not too long ago] I was not alone, in part because Copilot is not I think the greatest thing since. . .I think a company that recognizes it has to catch up, it has a balance sheet that is, not, you know they don’t put out the top people [inaudible]. . .But what I am saying is that, an arrogant Microsoft would have been a real turnoff. But they are going around talking to people, very nice fellow. And I felt you know what, they’re listening. I want them to listen, I want them to understand that they have to break out of where they are.”z
Alger Capital Appreciation Fund also discussed Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a global technology leader and a primary beneficiary of the ongoing digital transformation of enterprise computing, holding dominant positions in desktop software, cloud infrastructure, and generative artificial intelligence. We believe the company is well positioned as businesses continue to shift workloads to the cloud and integrate AI into their operations. During the quarter, shares detracted from performance despite the company delivering better-than-expected total revenue and earnings, with operating profitability improving substantially year over year. The primary source of investor disappointment was the company’s Azure cloud business, where revenue growth came in slightly below elevated expectations. Management attributed the shortfall in part to supply constraints and the allocation of computing resources, suggesting that the company is currently unable to fully meet customer demand rather than facing any softening in underlying appetite. Despite the near-term shortfall, the total value of newly signed customer contracts grew significantly, providing multiple years of committed future revenue, while management noted that its entire GPU capacity is fully contracted for its useful life.”
15. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holdings in Q4 2025: 111
AI computing infrastructure firm Oracle Corporation (NYSE:ORCL) has shaped up to be one of the more important stocks in today’s AI era. Its shares are up by 49% over the past year and are down by 5.9% year-to-date. However, like several other AI and enterprise software stocks, Oracle Corporation (NYSE:ORCL)’s shares have also demonstrated momentum recently. They are up by 19% over the past month and have gained 33% since April 10th. Keybanc recently discussed the computing firm. It reiterated an Overweight rating and a $300 share price target on the firm and pointed out that Oracle Corporation (NYSE:ORCL) was engaged in several important industry such as AI computing infrastructure and agents to automate work. Mizuho discussed the firm on April 2nd. It reiterated a Buy rating and a $320 share price target for Oracle Corporation (NYSE:ORCL). The coverage came a day after Barclays had kept a Buy rating and a $240 share price target. Cramer discussed the recent share price movement:
“This is the complete revenge of the software companies, . . .whether it be Oracle and of course, Microsoft. And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off. And I’ll tell you, you mentioned Oracle. Oracle is the one that makes people feel, you know what, it, this is all fine. It’s going to happen. Oracle was a bridge too far. Not unlike, I don’t want to conflate too much, not unlike Blue Owl with private credit. What we’re doing is solving some of the puzzles, that really were out there. Now David, all of these are linked. You and I knew that Blue Owl could make it. . .that it was a gating issue, liquidity issue. We knew that Oracle has got the orders, but people didn’t believe. . .This is a conversion of people who didn’t believe. And you know that’s not early, it’s not early when you finally get the short sellers to cover.”
Clearbridge Dividend Strategy discussed Oracle Corporation (NYSE:ORCL) in its Q1 2026 investor letter:
“In IT, we exited Oracle Corporation (NYSE:ORCL) and trimmed Broadcom. Our five-year investment in Oracle proved highly profitable as the company transitioned its business model from licensing to software-as-a service (SAAS). In the last year, Oracle went all-in on building data centers for AI customers, pushing its backlog north of $500 billion. In 2025, the stock surged as Oracle announced eye-popping AI contracts; we took advantage of that surge to begin exiting the position. More recently, investors have begun to question the return profile of these projects, given the hundreds of billions of dollars in required capital investment and their overdependence on one, single customer: OpenAI. Aligning with OpenAI seemed like a no-brainer two years ago when it was the clear leader in AI, but with Google’s Gemini and Anthropic’s Claude catching up to ChatGPT, Oracle’s concentrated bet on one player now seems questionable. We sold our remaining Oracle shares in the first quarter of 2026.”
14. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holdings in Q4 2025: 115
Customer relationship management software firm Salesforce, Inc. (NYSE:CRM)’s stock is down by 20% over the past year and by 25% year-to-date. Truist discussed the firm on April 16th, as it kept a $280 share price target and kept a Buy rating on the stock. The bank’s coverage came after Salesforce, Inc. (NYSE:CRM) held its TDX developer conference in San Francisco. After attending the event, Truist formed the impression that the firm’s products were not being threatened by LLM software that allows users to code their own products. Additionally, the bank also outlined that Salesforce, Inc. (NYSE:CRM)’s Slack product carried great potential to integrate agentic AI within its Slackbot platform. With the shares up by 14% since April 10th, Cramer discussed the recent momentum in the stock:
“This is the complete revenge of the software companies, whether it be ServiceNow and Salesforce. . .And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off.
“Salesforce has a strategy, Jackson Ader, has a piece this morning, from Key [Keybanc] about how this new method they use to talk about themselves, makes it so that they have more relevance. But you know Microsoft isn’t a big fan of Salesforce, they would tell you they’re struggling for relevance.”
Oakmark Fund discussed Salesforce, Inc. (NYSE:CRM) in its Q1 2026 investor letter:
“Salesforce, Inc. (NYSE:CRM) was the top detractor during the quarter. The U.S.-headquartered software company’s stock price declined as it contended with market fears over AI disruption. Quarterly results have remained strong and margins continue to improve. Management emphasized they expect subscription revenue growth to accelerate in the second half of 2026 as Agentforce becomes a more meaningful part of the business. We applaud management’s commitment to share repurchase at recent market prices, including their recently announced $50 billion buyback authorization and $25 billion accelerated share repurchase plan. We believe these capital allocation actions position Salesforce to emerge stronger from today’s AI-related stock price drawdown.”
13. CoreWeaveInc. (NASDAQ:CRWV)
Number of Hedge Fund Holdings in Q4 2025: 58
AI infrastructure firm CoreWeaveInc. (NASDAQ:CRWV)’s shares are up by a strong 199% over the past year and by 45% year-to-date. Since April 9th, the stock is up by 25%. Cantor Fitzgerald discussed the firm on April 16th as it raised the share price target to $156 from $149 and kept a Buy rating. The firm remarked that CoreWeaveInc. (NASDAQ:CRWV) had made key moves lately, which included a $21 billion deal with social media giant Meta and a $6 billion agreement with Jane Street through which it will provide the firm with access to AI computing products such as NVIDIA’s latest Rubin AI GPUs. CoreWeaveInc. (NASDAQ:CRWV)’s Jane Street deal also includes a $1 billion equity investment in the AI infrastructure firm. Cramer discussed the recent movement in the shares and the Jane Street deal:
“We knew that CoreWeave can borrow money endlessly because of the fourth industrial revolution. This is a conversion of people who didn’t believe. And you know that’s not early, it’s not early when you finally get the short sellers to cover.
“Jane Street bought it’s like a billion dollar deal that CoreWeave got. Jane Street invests one billion dollars in CoreWeave. And you know Jane Street, those guys are pretty smart. . .I mean CoreWeave is kind of at the heart of what’s going on. The stock was up ten. . .”
12. Blue Owl Capital Inc. (NYSE:OWL)
Number of Hedge Fund Holdings in Q4 2025: 47
Blue Owl Capital Inc. (NYSE:OWL) is an asset manager that provides lending and financing products and services. Several analysts discussed the firm in April. For instance, Evercore ISI kept an Outperform rating and a $10 share price target on April 2nd. The financial firm remarked that the large redemption requests that Blue Owl Capital Inc. (NYSE:OWL) was facing would have a modest impact on its earnings. Bank of America trimmed the share price target to $21 from $23 and kept a Buy rating on the stock on April 5th. The bank outlined that its coverage was part of a broader set of adjustments for the asset management sector. Piper Sandler reduced the price target to $12.50 from $15 and kept an Overweight rating as it remarked that the asset management sector had had a slow start to 2025. With Blue Owl Capital Inc. (NYSE:OWL)’s shares up by 16% since April 13th, Cramer discussed the recent trend:
“Now David, all of these are linked. You and I knew that Blue Owl could make it. . .that it was a gating issue, liquidity issue. . .This is a conversion of people who didn’t believe. And you know that’s not early, it’s not early when you finally get the short sellers to cover.
“I mean if ServiceNow goes up then Blue Owl lives to fight again. . .you know yesterday the amount of stock that traded yesterday of Blue Owl was just crazy. If I were Doug Ostrover and Marc Lipschultz I’d sell that silly team that they’d bought. That was stupid, that’s top market they know that. Yeah you just sell them and you come in and you buy your own stock, hand over fist and you squeeze the shorts.”
11. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holdings in Q4 2025: 224
Cramer discussed contract chip manufacturer Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in detail in his tweets and in his morning appearance after the firm reported its first quarter earnings report. The shares are up by 143% over the past year and by 15% year-to-date. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s earnings saw the firm post NT$1.134 trillion in revenue and NT$572 billion in net income. The results saw the firm beat analyst estimates of NT$1.127 trillion and NT$543 billion. Needham discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) following the earnings as it raised the share price target to $480 from $410 and kept a Buy rating on the stock. Bank of America raised the share price target to NT$2,360 from NT$2,530 and kept a Buy rating on April 13th. BofA remarked that it expected Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to grow revenue by 7% to 9% sequentially in the second quarter of 2026. As the shares dipped following the earnings, Cramer didn’t hold back with his remarks:
“They were shorting without even listening to the [omitted] call. They were betting against the company. . .without even listening to the call. Well that just showed, this is what we’re up against.
“Taiwan Semi’s great quarter. And you can see the stock is down, don’t worry about it, it’s absolutely fabulous. But they mention at one point, they say, someone asked about, is memory price really starting to hurt the business? Because it’s up, up, up, up, up. And you know, the executive says. . .memory price hikes definitely have had an impact but we see a little bit softer market. Little bit softer market? We’ve taken Micron up and up and up, you’re telling me there could be a little bit softer market? So you will see those stocks, and that’s when we think about that, even though Seagate is disk, even though we know Western Dig is disk, we know Sandisk is disk, you’re going these stocks down just because of that one line.”
10. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holdings in Q4 2025: 264
NVIDIA Corporation (NASDAQ:NVDA) is a firm that Jim Cramer discusses almost daily in his morning appearance. Its shares are up by 102% over the past year and by 5.8% year-to-date. April has been a good month for the stock as it has gained 14.6%. Rosenblatt discussed NVIDIA Corporation (NASDAQ:NVDA)’s shares on March 23rd. It reiterated a Buy rating and kept a $325 share price target for the firm. In his previous comments, Cramer has stuck by the firm as he attested to the high demand for its products. In a recent appearance on Mad Money, the CNBC TV host remarked that a flurry of news items led the stock lower but ended up being too painful for the sellers. In this appearance, he discussed NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang’s comments about custom, non-NVIDIA AI chips called TPUs:
“Saying, why don’t you go benchmark? Why don’t you go benchmark? But you know what this is like?. . .basically these guys, I mean, Jassy, when you talk to Jassy about Trainium, he’s like, you know we’ve got a great chip. Well why doesn’t he benchmark it? Why doesn’t he put it against it the. . .tests? That’s Jensen. Why do I love Jensen? That was an evisceration!. . .It had rigor. You know what he is? He is a serious person!”
Alger Capital Appreciation Fund discussed NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2026 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading designer of graphics processing units (GPUs) and accelerated computing platforms, providing the foundational hardware and software that power artificial intelligence training and inference across data centers, cloud infrastructure, and edge applications globally. The company’s GPUs have become the de facto standard for AI workloads, and its expanding ecosystem of networking, software, and systems solutions has deepened its strategic importance to hyperscalers, enterprises, and sovereign AI initiatives worldwide. We believe Nvidia is a direct beneficiary of the AI infrastructure buildout given its dominant market position, unmatched product roadmap, and rapidly expanding addressable market. During the quarter, shares detracted from performance despite the company delivering record fiscal fourth-quarter results that exceeded expectations on both revenue and earnings, with strong forward guidance that pointed to continued acceleration. However, a sharp post-earnings sell-off reflected broader investor anxiety around the sustainability of AI capital spending, lingering questions about whether more cost efficient AI models could reduce demand for high-end computing hardware, and a wider rotation out of mega-cap technology names. Despite the near-term volatility, we believe the structural demand for accelerated computing remains firmly intact.”
9. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings in Q4 2025: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the largest eCommerce and cloud computing retailers in the world. Its shares are up by 44% over the past year and by 10% year-to-date. Like most other technology stocks, Amazon.com, Inc. (NASDAQ:AMZN)’s stock has also performed well over the past couple of weeks, as it is up by 20% in April so far. Citizens discussed the firm on April 14th as it reiterated a Market Outperform rating and a $315 share price target on the firm. The coverage came after Amazon.com, Inc. (NASDAQ:AMZN) announced a major deal in the satellite internet space as it acquired Globestar for a $11.7 billion price tag. The financial firm remarked that the deal will boost the eCommerce company’s spectrum and gateway station portfolio. Amazon.com, Inc. (NASDAQ:AMZN) already operates in the satellite internet industry through its Amazon Leo project (previously named Kuiper). The firm’s CEO, Andy Jassy, recently penned a shareholder letter in which he outlined the role of AI in the firm’s growth strategy. Cramer was left impressed by the letter:
“It was beautiful. . .stock hasn’t looked back, has not looked back. . .that letter, it trumped a lot of Bezos’ letters.”
8. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Fund Holdings in Q4 2025: 91
Productivity software firm Adobe Inc (NASDAQ:ADBE)’s stock has struggled in today’s AI era. They are down by 29% over the past year and by 25.8% year-to-date. Amidst this dip, Cramer has discussed the firm several times over the past year. He has commented on the impact of AI on its products, and more recently, remarked that even Apple’s software might have an edge. Citi discussed Adobe Inc (NASDAQ:ADBE)’s shares on April 10th as it raised the share price target to $287 from $253 and kept a Neutral rating on the shares. Earlier, in March, William Blair had also commented on the firm. It downgraded Adobe Inc (NASDAQ:ADBE) to Market Perform and discussed competition in the software market. The financial firm remarked that while the software company was trading at cheaper multiples, it still faced tough competition. Cramer remarked on the competition Adobe Inc (NASDAQ:ADBE) was facing from Anthropic:
“Well let’s talk about the one that I think is basically the most impacted by Anthropic. Adobe. I can recreate Adobe on Anthropic for nothing, you can, it’s just like done. And that’s better than Canva, its’ better than Figma. And on Google, you can recreate it on Google. And here we go it’s been going up and it’s a big short squeeze and you basically have a 100 billion dollar company that may have an existential crisis, may not even be able to overcome what Google is doing. But the stock is going higher because it’s a short squeeze.
“Look Adobe is now, you know my daughter went to Parsons, and they give you a course on how to use Adobe. Of course, all the design schools give you a course on how to use Adobe. I think that when these design schools take Adobe out, because Adobe costs a lot of money, I think you’re going to say wow, this is a company that’s like digital equipment.”
Patient Opportunity Equity Strategy discussed Adobe Inc. (NASDAQ:ADBE) in its Q1 2026 investor letter:
“We initiated a position in Adobe Inc. (NASDAQ:ADBE), a casualty of the “SaaS-pocalypse”. Adobe is the dominant platform for creative professionals, holding a near-monopoly position across document management, digital design, and marketing software. Despite this strong competitive position, the stock has been weighed down by investor concerns around AI disruption to its core creative tools business. We believe these fears are overblown. You do not need to believe much for there to be attractive upside in the name. The company’s Document Cloud and Experience Cloud businesses represent durable, high-margin recurring revenue streams with limited disruption risk, and the company continues to incorporate AI into its product suite with its Firefly generative AI platform already beginning to monetize. If you simply believe the company can grow the bottom line at 7.5% annually over the next five years, the stock is worth roughly 60% more than where it trades today. The company continues to generate significant free cash flow, trading at a 10% FCF yield, and has returned meaningful capital to shareholders through buybacks, repurchasing a net 21% of shares outstanding over the last ten years.”
7. PPG Industries, Inc. (NYSE:PPG)
Number of Hedge Fund Holdings in Q4 2025: 37
PPG Industries, Inc. (NYSE:PPG) is one of the biggest specialty chemicals companies in America. Its shares are up by 8.9% over the past year and by 6.3% year-to-date. RBC Capital discussed PPG Industries, Inc. (NYSE:PPG)’s shares on April 16th. It raised the share price target to $119 from $114 and kept a Sector Perform rating. The firm remarked that while PPG Industries, Inc. (NYSE:PPG)’s second-quarter guidance and first-quarter earnings were notable, it might face headwinds from the conflict in Iran. Some factors that could affect the firm, according to RBC Capital, are rising raw material costs and geopolitical concerns. Earlier in the year, a flurry of analysts had discussed PPG Industries, Inc. (NYSE:PPG). For instance, Bernstein increased the share price target to $130 from $123 and kept an Overweight rating on January 30th following the firm’s fourth quarter earnings report. Cramer discussed the price increases and remarked that they were not due to inflation:
“Now how about the run in the chemicals, how about PPG? 20% price increase, PPG. No, it’s not inflationary, don’t worry about inflation. 20% pricing, that’s not inflation. . .”
6. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holdings in Q4 2025: 74
Food and beverages firm PepsiCo, Inc. (NASDAQ:PEP)’s shares are up by 7.9% over the past year and by 8.9% year-to-date. Banking giant JPMorgan discussed the firm on April 8th. It cut the share price target to $172 from $176 and kept an Overweight rating on PepsiCo, Inc. (NASDAQ:PEP)’s shares. JPMorgan’s coverage came after the food company maintained its 2026 organic sales growth guidance at 2.5%. On the 7th, Bank of America had reiterated a Neutral rating and a $173 share price target for PepsiCo, Inc. (NASDAQ:PEP). The firm’s upcoming earnings were part of the coverage, as BofA commented that it expected the company to deliver earnings that were in line with analyst estimates. Cramer discussed the earnings report and also remarked on the disruption in the aluminum market stemming from the conflict in Iran:
“Well Pepsi, Ramon’s hedged against, he’s hedged on aluminum, Pepsi, he’s hedged.
“Yeah I thought it was a great quarter but you know the stock is up a lot. Ramon did a great job, he understands the smaller packages. But I thought the Gatorade hydration product, you hydrate faster with Gatorade than you do with water, science proven. . .this is also going to be a very hot product.”
While we acknowledge the potential of PEP 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 PEP and that has 100x upside potential, check out our report about the cheapest AI stock.
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