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Jim Cramer Says “RH (RH) Is High-Risk, High-Reward”

RH (NYSE:RH) is one of the stocks that Jim Cramer shared his take on. Cramer called it a “wild trader” during the episode, as he commented:

“Initially, stock sold off in after-hours trading, then spiked up 14% before cooling off again. This one’s a wild trader… Ultimately, it finished up 6%. I thought that was pretty darn good because there were a lot of companies that really did not do well after the quarter today. Now, look, not everyone’s sold on the idea that this was a positive quarter. You know, there was a curious one. Analysts at Stifel downgraded RH in response, saying they still believe there’s a fundamental mismatch between the company’s valuation and its long-term prospects.

They just don’t see what kind of catalyst could be coming to help close that mismatch. How about if housing got better? So here’s where I come down: At the end of the day, RH remains what has been a highly levered way to play a potential housing recovery. If we get some more relief on interest rates, meaning if the Fed stays friendly, then housing can rebound, and RH will be a home run over the next couple of years.

If you believe there’ll be a turn in housing, this could be a fantastic stock. But if the housing market doesn’t materially improve, and the company continues to be rocked by tariffs, and Gary Friedman keeps forging boldly with his expansion strategy, even if market conditions don’t really warrant it, well, then some very, very bad, self-inflicted outcomes could be on the table. The bottom line: RH is high-risk, high-reward, but it really comes down to how you feel about housing. Either way, though, I know it’s going to be an entertaining ride.”

RH (NYSE:RH) is a retailer and lifestyle brand that provides furniture, lighting, textiles, bathware, decor, and outdoor and children’s furnishings.

While we acknowledge the risk and potential of RH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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