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 commented on how market sentiment towards AI appeared to be changing. “Yeah look, this is a moment where, if you have AI, we are now saying it’s good,” he said. “Remember we were sick of AI for a while and now AI’s back,” Cramer added.
He also commented on the current tensions between the US and China regarding AI and overall trade. The US has restricted sales of advanced AI chips to China, and to Cramer, the current environment “feels so much like Russia and United States from the Khrushchev time on, it really does.” He added that US technology was superior to the Chinese, and when co-host David Faber pointed out that China was pushing out a lot of STEM graduates, Cramer replied: “We’re four times smarter than they are. Our schools. Four times better.”
The US AI chip sanctions have included restricting all but 18 countries from being able to acquire the latest AI chips. The laws were introduced under the Biden administration and Cramer’s been their critic. When Faber asked him to explain the rules, called ‘Diffusion Rules,’ Cramer outlined:
“Okay so Biden picked 18 friends. 18 friendly nations that were allowed to get all the chips that they . . and then there was the next group, which was the not so friendly, which when look at, is a lot of EU countries which I always thought were friendly because of NATO, that kind of thing. . .Iceland, Mexico, not in there. And then there’s just the enemies list.”
Cramer added rather cryptically: “And some people now feel that they’re going to offer licensing for a country which would really be bad. Worse than what Biden did.”
He added:
“No they have got to get that changed because. . .if you go check, Jensen Huang did this . . .he did this huge tour, all around the world, to all these countries that are basically going to be denied and that are not friendly.”
As for the impact of tariffs on economic growth, Cramer believes: “Well, we gotta see, this next quarter is the quarter where, everyone is so concerned.”
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 May 1st.
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).
10. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders In Q4 2024: 96
Wells Fargo & Company (NYSE:WFC) is one of the biggest banks in America. Cramer has commented on the firm several times during his morning show. He believes Wells Fargo & Company (NYSE:WFC)’s CEO Charlie Schwarf is a competent executive and indicated that the firm can benefit if it manages to fully shake off its past reputational hits. Here are his latest thoughts about Wells Fargo & Company (NYSE:WFC):
“How about Wells? Selling at the bottom? Well Wells had a corrupt management, in his eyes, and Charlie Scharf has cleaned it up. They still haven’t had the, Federal Reserve, get rid of the cap.”
9. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders In Q4 2024: 110
ServiceNow, Inc. (NYSE:NOW) is a software company that enables businesses to manage their workflows. Its shares have lost 7.3% year-to-date but performed well in April as they gained 22% during the month’s final days. Cramer’s previous remarks about ServiceNow, Inc. (NYSE:NOW) have commented on the firm’s recent earnings. He explained that the shares performed well because investors had overestimated the impact of cost-cutting efforts on the firm’s business. Here are his recent thoughts about the firm:
“Right, and we want to come back to it. It was a big guide up and it had rule of 50, it had great growth, great margins. This Truist piece today, Hold to Buy, it does say something that I think people have to recognize. This company’s not a leader in AI. And I don’t even know if Jensen Huang has [inaudible] in terms of what, when you bring someone in, you can either build your own AI or you can call ServiceNow and they’ll build it for you. Even for customer relationship management. So I think you maybe want to circle back to the one that was as good last week as the one perceived now. Bill McDermott, credit to him, he’s picked up a huge number of accounts.
“The opposite. . .bigger winner from DOGE, people got that completely wrong. Bill is just a, he’s a closing machine.”
