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Jim Cramer Says Wells Fargo “Has a Bright Future”

Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer reflected on. Cramer noted that his trust upgraded the stock, as he said:

“Wells Fargo reported the next one, and this one really ruined my day because we own it for the Charitable Trust, and Wall Street hated the results, even though the sales and earnings were better than expected. Some of that was from lower provisions for credit losses, offsetting the bank softer than softer-than-anticipated net interest income. Wells even cut its full year forecast for net interest income, caused people to dump the stock in droves, and me to hit the linoleum floor…

Now, on the company’s earnings call, management tried to explain this change was intentional. Now that Wells Fargo is no longer limited by the punitive asset cap, they’re prioritizing their institutional business. Think sales and trading. So whatever they lose in net interest income, they expect to make up in fees. Still, the change clearly caught everybody off guard, and I didn’t think they really explained it that well. Hence why the stock dropped more than 5% yesterday.

Still, I’m sticking with Wells Fargo for the Charitable Trust…

In fact, after yesterday’s pullback back, the trust upgraded Wells. We had it as a two. We took it up to a one, meaning, we think the stock could be bought right now. Ultimately, I trust Wells Fargo’s CEO, Charlie Scharf, who’s really good. I think he can get the bank back on track. It was never really off track, but you know what, it had that asset cap, it went away, and now I think they got so many things going, it wasn’t communicated well. They need an analyst meeting. With the asset cap gone, Wells has a bright future. It’s just, they have, I call it a messaging problem.”

Rob Wilson / Shutterstock.com

Wells Fargo (NYSE:WFC) provides a wide range of financial services, including banking, lending, investment, and wealth management.

While we acknowledge the risk and potential of WFC 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 WFC 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.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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.

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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?

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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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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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