In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed how small-cap stocks soared after investors became hopeful about interest rate cuts. However, he cautioned about getting too optimistic:
“Yesterday was really an amazing day because people were split about how hot or cool the CPI was. But then suddenly, people just, this wave of people just determined that it was not only cool, but perhaps, perhaps we even could get a 50 basis point, which I think is a fantasy. But, I saw stocks ignite, when I saw the financials go crazy, David, I know it’s a little controversial, but what financial just exploded yesterday?”
The conversation then shifted to AI computing infrastructure firm CoreWeave. Cramer believes that the firm could post a higher backlog if it were not constrained by power. AI power consumption is of key interest to investors as high-end chips can consume as much as 3.7 MWh of power annually.
While AI power consumption is concerning, another key concern is its water demand due to cooling requirements. Cramer’s co-host Carl Quintanilla pointed out that water was a key issue as he quoted a report which projected that by 2030, data centers in Texas would account for 7% of the state’s water consumption. The data center water use amounts to 399 billion gallons, and Cramer countered by sharing that building data centers in Washington, where there was ample water, could be one way to accommodate AI’s thirst.
The CNBC TV host then admitted that the industry is still struggling to reconcile with the high water and power requirements. According to him:
“These things, they haven’t figured out how to do it. Some people feel that’s why quantum has to be involved, because quantum doesn’t burn. . .”
Cramer also believes that nuclear power could be the answer to AI’s power demand as wind and solar power are unreliable. “But nuclear is the answer,” he said. “Wind is great, except for sometimes it’s not winding. And solar’s great, but, jeez the Sun, I mean. I don’t know, sometimes I think is that the Sun? I don’t know, I’m new to this town,” Cramer added.
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 13th.
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).
14. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders In Q1 2025: 77
The Goldman Sachs Group, Inc. (NYSE:GS)’s shares have been performing well lately as mergers and acquisitions pick up. They have gained 25.5% year-to-date and are up by 56% since the post-Liberation Day dip in April. Cramer’s previous comments about The Goldman Sachs Group, Inc. (NYSE:GS) have discussed the bank’s valuation and commented that a price-to-earnings ratio of 16 was too low. The shares are currently trading at a P/E ratio of 15.9, while the CNBC host believes they should trade at least 18. This time, Cramer discussed The Goldman Sachs Group, Inc. (NYSE:GS) in the context of broader market activity and President Trump’s belief that its top management should switch careers:
“The reason I brought it up instead of Rocket Mortgage is because Goldman encapsulates everything, IPOs, right, M&A, trading volume. This is the barometer for this stock market and it took off in a way that I haven’t seen in ages.
“I just wonder what the President thinks of Kostin. Because Kostin’s very good. . .no, no I think Kostin’s good.”
Here is what Cramer believes about The Goldman Sachs Group, Inc. (NYSE:GS)’s valuation:
“Goldman, Goldman and Morgan. I think that Goldman stock has been elevated because of things I guess. Now see, Goldman’s only at [inaudible] it’s got a parabolic move. But it sells at 16 times earnings. That is a candidate to be revalued up to 18, 19 times earnings.”
13. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders In Q1 2025: 36
CoreWeave, Inc. (NASDAQ:CRWV) is a key player in the AI industry as it hosts and provides computing infrastructure to AI software companies. The shares have gained 132% since their IPO in March but have lost 49% since their peak in June. The day Cramer made these remarks about CoreWeave, Inc. (NASDAQ:CRWV) was key as the stock closed 21% lower. The CNBC TV host commented on the firm in the morning and discussed CoreWeave, Inc. (NASDAQ:CRWV)’s earnings call. His comments about waiting were also prescient, given the major share price dip. However, Cramer believes that electricity constraints are preventing CoreWeave, Inc. (NASDAQ:CRWV) from having a higher backlog:
“But I do think Carl, when we look at what’s happened with CoreWeave, what we have to focus on, is the lockup. The expiration of the lockup. Cause I don’t want people to get in it. That’s the 15th, tomorrow. I don’t want anyone to see it, it’s after the close tomorrow. I just think that if you people want to be in it, you have to wait till things settle down.
“The call was filled with congratulations, and people are very excited about the fact that everybody has to build one of these. David, just for you, I was going over with Michael Intrator, the size of what people have to build. HE’s talking about six San Franciscos. Six San Franciscos. . . .well he felt, well the problem is Mark Zuckerberg was talking about various parts of the map, but didn’t talk about the actual building. Six San Franciscos. . .
“But with CoreWeave you’ve gotta understand. If we go to reasoning, the next generation of NVIDIA, Vera Rubin, from Philadelphia by the way, what you will find is that’s reasoning. And that’s what we need in all this. In order to reason you need much more power.
“I do think that what they did, they’re constrained [in the backlog] by power, you need more power. They could do a much bigger backlog but they don’t have the power.”