In this piece, we will look at the stocks that Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed market and industry doubts about AI. The CNBC TV host commented on reports suggesting that the costs of investing in AI were too much, while the profit was too little. Cramer believes that while the costs of AI are high, the returns will also appear soon enough. He also called AI a souped-up Google:
“I think you have to recognize that this is the most, because of the numbers you cited, this is the most I’ve heard of, emperor no. clothes, and yet I think we are right at the cusp of reasoning. And the thing that bothers people, right now it’s a souped-up Google, people won’t call it that, but I’m calling it that. But what I’m saying is this that we’re so close to reasoning, so close to be able to have a dialogue and it correcting us, that you want to get off the horse now?”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on August 27th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
11. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q2 2025: 235
NVIDIA Corporation (NASDAQ:NVDA)’s earnings report saw the shares fall by as much as 4% in aftermarket trading. Cramer discussed the stock in detail the day before its earnings and shared a key metric that had to be addressed during the earnings call for the firm’s long-term success:
“Okay, so, we actually had the CEO of MongoDB on this morning, talking about the overspending. Are the hyperscalers overspending? Does it really matter? . . .Talked about hallucination and the problems there. I come back and say, the answer to everything, come to this company. You cannot have generative AI, the way you’d like to, without NVIDIA. So you’re going to have, what some people say, overspend, but, its the table stakes, it’s the price to be in the business. David, there are a lot of people who feel this will come up tonight, that the total cost of ownership in NVIDIA has gotten too high and you can’t make money with it.
“[When asked what he meant by total cost of ownership] Cause if you buy the stuff and then you have it inserted by Dell, and you try to train on it and you have the inference, it turns out that you lose money.
“Okay so the rap is, NVIDIA makes all the money and nobody else does. And that’s what has to be addressed tonight. Not China. I mean everyone’s going to say China, it’s like, yes, okay so you’re a parrot. . well that’s those people. Well, I mean, no kidding, China. What matters is that we hear from Jensen Huang about that whole narrative, that the spend isn’t getting them any results, is false.
“I’m not going to disagree with that, but I think Jensen might be able to say, look, the return here is monstrous, you just have to be able to bear with it.
“[On talks about not being able to replace with AI what was happening with key software providers] Look, I think that’s a really important narrative, but I think what’s more important and why this conference call is valuable, is because if that’s the case, what’s the demand? I mean the demand, some people say it might be as high as ten to one. . .but I do think that there is a case to be made that this is by far the most important stock in the market.
“For the longest time in the world software is what mattered. Before that by the way, it was, just so you know, oil. . .but it was these, it finally became semiconductors. And for the longest time until Lip-Bu was the only person, Lip-Bu Tan, the now loved from the White House, was saying listen, one day, semiconductors are going to rule the world again. Not unlike dinosaurs. And what happened is, it happened. Because of NVIDIA.
“I’m just saying, the zeitgeist in this country had always been enterprise software, that’s how you made all your money. Right. Software. . .you have this one country, but you do not have the other semis. . .but it’s just this one semi, but semiconductors have reasserted what maybe from the days when Intel, when the Texas Instruments. . .
“People at home are trying to figure out why we are so possessed with NVIDIA? If it looks like that no one’s getting any return from NVIDIA, if it looks like that they had to go to the President to get China. And the reason is we are either going to make a lot of money with AI, right, or Dev, Dev Ittycheria, from MongoDB, says listen no one’s going to make any money. Which means the only company that’s going to make money is NVIDIA. Which means in the end you’re going to hear someone break ranks. That’s what everyone is scared about.”
“I think you have to. But frankly I don’t trust anything from China. Look DeepSeek got people out. 50% ago and that was a disaster. I’m trying to keep people in. And I try to keep people in and why I wore by the way just so you know, my NVIDIA cufflinks today? Because I want people to be in. Remember 2017. Where were the other guys? When I was naming my dog NVIDIA, where was the other guys? Now they’re all in the party. At 4.4 trillion.”
10. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders In Q2 2025: 75
MongoDB, Inc. (NASDAQ:MDB) is a software company that enables businesses to manipulate and work with data. Its shares have gained a whopping 40% over the past five days after its second-quarter revenue, earnings, and subscription revenue of $591 million, $1, and $572 million all beat analyst estimates. Cramer discussed the stock with his co-host David Faber:
“And the reason is we are either going to make a lot of money with AI, right, or Dev, Dev Ittycheria, from MongoDB, says listen no one’s going to make any money.
“The reason I’m mentioning Dev, I’m mentioning Dev is because his stock is up 70 points. . .
“MongoDB is not AI. It’s software that you can use to be able to build an AI program on, but it’s a software company so we’re seeing enterprise software have its day in the sun, including that Wall Street Journal article. Enjoy it while it lasts.
“[After Faber commented that it was worth mentioning that MDB’s stock based compensation added to non-GAAP EPS meant that the firm lost 58 cents] It absolutely is and remember this is this AI versus software, but you need, you get MongoDB software it’s better, you’re able to write programs. So let’s say you have a business, and you’re using Shopify, okay, and it shows you that you have lots of customers in California and lots of customers in Texas, not a lot of customers in Pennsylvania. You don’t know what to do with that. You run it through MongoDB and it tells you that, well that pattern is because people like potato chips in Northern California. It lets you interrogate the data. And that’s a terrific thing, but it is not AI.”
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