Jim Cramer, the host of Mad Money, said on Tuesday that the first days of January trading show how quickly emotions can take control of the market once a new year begins.
“The beginning of the year, a wildly emotional time. What do you got? You got the ride ‘em cowboy crowd that likes to stick with the stocks with the best momentum from the previous year. Then there’s the hope spring eternal contingent that goes for the underperformers, stocks crushed… And you’ve got people who buy the mistaken stocks, perhaps the ones that should never have gone down to begin with. All these buyers are coalescing right now to give you a strong tape.”
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Cramer also noted that some of the activity is due to the artificial intelligence boom, and added that the rapid growth in AI has created a surge in data that the storage industry was not prepared to handle. He noted that the infrastructure simply could not keep up with the sudden demand. He went on to say that he prefers stocks that were wrongly punished over pure momentum plays or turnaround situations. At the same time, he cautioned that the market often favors a choppy, volatile January rather than a calm one, and he expects the emotionally driven trading to persist for a bit longer, given how early it is in the year.
“Here’s the bottom line: We’ve seen these trends last as long as 10 trading days into the new year before we’ve gotten even a sharp correction. It wouldn’t surprise me if that happens again. So if you have big gains, say in Seagate or Western Digital or Sandisk, please don’t be so greedy. It’s time to ring the register tomorrow morning on part of your position. Meanwhile, I say hold on to the turnaround stocks and buy the mistaken identities because they’re the ones that should keep running as we go further into the new year.”
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 6. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 hedge funds.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Shared His Takes on These 14 Stocks
14. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 50
The Kraft Heinz Company (NASDAQ:KHC) is one of the stocks Jim Cramer shared his takes on. Cramer highlighted the company’s new CEO during the episode, as he said:
“Interestingly, Steve (Steve Cahillane) just started CEO at another underperforming food company, Kraft Heinz, January 1st. Nobody seems to care, just like no one cared when he took over Kellogg’s. People have written off Kraft Heinz repeatedly, which is supposed to split into two companies in the second half of the year. Now, I’m not sure Steve wants to go with that breakup. What I do know is that he is the right guy to orchestrate this, given how much value he created by breaking up Kellogg, despite what’s supposed to be a very tough environment. Now, I have my doubts when Steve came on the show and announced the split, but my doubts were, let’s say, ill-advised. Maybe he can prove me wrong again on Kraft Heinz.”
The Kraft Heinz Company (NASDAQ:KHC) produces food and beverage products, including condiments, dairy, meals, meats, beverages, and snacks under brands like Kraft, Heinz, Oscar Mayer, and Philadelphia.
13. Fortune Brands Innovations, Inc. (NYSE:FBIN)
Number of Hedge Fund Holders: 40
Fortune Brands Innovations, Inc. (NYSE:FBIN) is one of the stocks Jim Cramer shared his takes on. The last caller of the lightning round inquired about Cramer’s thoughts on the stock, and he stated:
“Okay, the problem is that no matter how good, look, Nick Fink is terrific, but no, it doesn’t matter how much he does, it’s still a housing play. That’s why we own Home Depot. I think it’s a better way to own it and Home Depot, you know, has historically went up ahead of when the Fed cuts. So, I’d like to be in that one more than I would like to be in Fortune Brands.”
Fortune Brands Innovations, Inc. (NYSE:FBIN) manufactures and sells home and security products, including faucets, doors, decking, locks, and safes.
12. SI-BONE, Inc. (NASDAQ:SIBN)
Number of Hedge Fund Holders: 32
SI-BONE, Inc. (NASDAQ:SIBN) is one of the stocks Jim Cramer shared his takes on. A caller asked about the company during the episode’s lightning round, and Cramer replied:
“Yeah, okay, so, you have to understand, this is a great, great speculation, I mean, terrific. And I’m glad you brought it to our viewers’ attention. I myself am going to huddle with research director Ben Stoto… and we are going to get to the bottom of this because I keep hearing this company’s name over and over and over again.”
SI-BONE, Inc. (NASDAQ:SIBN) develops and sells medical devices for musculoskeletal disorders of the sacropelvic area, including minimally invasive implants for sacroiliac joint dysfunction, pelvic trauma, and spinal support.
11. Fifth Third Bancorp (NASDAQ:FITB)
Number of Hedge Fund Holders: 39
Fifth Third Bancorp (NASDAQ:FITB) is one of the stocks Jim Cramer shared his takes on. Answering a caller’s query about the stock, Cramer remarked:
“Yeah, FITB, this is a good combination. I’ve wanted it. They are going to bring some, they will bring some discipline to Comerica. I think it’s a buy.”
Fifth Third Bancorp (NASDAQ:FITB) provides financial services, including commercial and consumer banking, lending, mortgages, and cash management, along with wealth and asset management services, investment planning, and advisory solutions. On January 6, the firm announced that shareholders of Fifth Third Bancorp (NASDAQ:FITB) and Comerica approved their merger, expected to close in Q1 2026. The Chairman, CEO, and President of Fifth Third, Tim Spence said:
“By combining Fifth Third’s award-winning retail and digital capabilities with Comerica’s middle market banking franchise, we’ll create a more dynamic, resilient institution with the scale and capabilities to deliver exceptional value for our customers, communities, and shareholders. Together we’ll form the ninth largest US bank with $290 billion in assets and a footprint spanning 17 of the 20 fastest-growing large markets in the U.S.”
10. USA Rare Earth, Inc. (NASDAQ:USAR)
Number of Hedge Fund Holders: 30
USA Rare Earth, Inc. (NASDAQ:USAR) is one of the stocks Jim Cramer shared his takes on. A caller asked Cramer what he thinks of the company, and in response, he said:
“See, I think that’s one of those year of magical investing stocks, and that year ended. I can’t bless it. Losing too much money.”
USA Rare Earth, Inc. (NASDAQ:USAR) supplies rare earth elements and other critical minerals, including neodymium, dysprosium, terbium, gallium, beryllium, and lithium. Cramer advised staying away from the stock when a caller asked about it during the October 30, 2025, episode. He commented:
“I’m going to say that you have to stay away for now. I mean, one of the things that you needed was that kind of mojo that came from the shortage. If we work out a longer-term deal with rare earth, it’s not, it’s not going to rebound very well for USA Rare Earth, which is losing a fortune.”
9. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 58
Teradyne, Inc. (NASDAQ:TER) is one of the stocks Jim Cramer shared his takes on. During the lightning round, a caller sought Cramer’s thoughts on the company, and he replied:
“You know what… this is a tough one. The stock is capturing too much enthusiasm, but I’ve got to tell you, it is one hell of a company. It is really, really great and I would not step away from it. Would I buy it up here? I don’t know, if it pulls back, I’m still a buyer… It’s that good a company.”
Teradyne, Inc. (NASDAQ:TER) supplies automated test equipment for semiconductor devices across industries such as automotive, communications, consumer electronics, and computing. The company also provides collaborative robots, mobile robotics, test instrumentation, and wireless testing solutions for manufacturing and industrial applications. While discussing the noteworthy stocks of Q3 2025, during the October 1, 2025, episode, Cramer mentioned the stock and said:
“Next, Teradyne, another old-line tech company. This one makes test and measurement equipment for the semiconductor industry, among a host of others. Teradyne has always been an incredibly well-run company, and it’s been a spawning ground for some incredible execs. Stock was up 53% for the quarter.”
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer shared his takes on. When a caller inquired about the company during the episode, Cramer commented:
“I get up at 2 a.m. to listen to their conference call. It’s magnificent. They really know what they’re doing. Why do I not own it for the Charitable Trust? Well, frankly, it’s because we own NVIDIA, which is, you know, one of the largest clients, probably arguably the largest, and I don’t think there’s a need to own both of them, but Taiwan Semi is a very good company. NVIDIA’s got the same Taiwan risk, actually, as Taiwan Semi to some degree, although obviously one’s located in Taiwan.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces and sells integrated circuits and semiconductor devices. The company provides fabrication and other related services. Sustainable Growth Advisers stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2025 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a contributor to portfolio performance in Q3. Management raised fiscal year 2025 guidance to 30% revenue growth year-over-year, supported by robust demand for advanced semiconductor manufacturing and strong execution across its diversified business mix. The company’s technology and manufacturing leadership at leading-edge nodes enables it to maintain pricing power and deliver high margins, with recent results exceeding expectations due to Taiwan dollar appreciation and U.S. openings. As it stands today, TSMC is the sole provider for all leading-edge AI and smartphone manufacturing and this position continues to strengthen with Intel’s pull back as subsequent advancement is only iterative unless disrupted by quantum computing. The lack of competition also allows the company to maintain good margins despite heavy investments in geographical diversification.
The company’s recent steps to diversify leading-edge production into Japan, Germany, and the U.S. provide a meaningful hedge and reinforce its importance to global supply chains. TSMC remains well positioned to deliver double-digit revenue and earnings growth over the coming years. We maintained an average weight position, trimming on strength.”
7. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer shared his takes on. A caller asked what was wrong with the company, and Cramer explained:
“Okay, well, this is actually involved with the debt side of Oracle. They had to borrow a lot of money to be able to… build-out all these data centers they want to. Then people got increasingly worried that maybe one of its largest clients, OpenAI, won’t be able to pay for that. I now am taking that off the table. I don’t want to buy Oracle because I’m not really sure about their business model, but I am not, I would take off the table that they’re, that the stock, it’s… 26 times earnings. If it got down a little bit more, I would just tell you to buy it.”
Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. Cramer discussed the company and its relationship with OpenAI during the December 19 2025 episode, as he remarked:
“Let’s talk about what needs to happen. What could go right, a little more optimistic, to get the data center theme back on track? Right now, the biggest ambush in this market comes from Oracle, the debt-laden software company turned data center builder. They’ve got a huge client called OpenAI, the privately held company that’s been a pioneer in artificial intelligence and the bots that go with it… Oracle’s charged with building out $300 billion worth of orders for these guys… An old-fashioned tech company reinvents itself as a data center builder and crows about it. Not only does Oracle have the huge order from OpenAI, they got another $223 billion in orders from other companies.
Oracle has put the potential revenue into something called RPO, or remaining performance obligation. Most of the time, that’s almost as good as money in the bank. The OpenAI order, the revelation initially sent Oracle stock from $241 to $345 and change in a single September trading session, although it closed that day at $328…. Of course, Oracle had to raise the money first, so they hit up the bond market for $18 billion, and that’s when the problem started. Bonds can be insured with what’s known as credit default swaps, which you can actually use to bet against those bonds too, even if you don’t own them.
If you fear that Oracle might default, you buy the credit default swaps. The value of Oracle’s credit default swaps soar when the value of the bonds goes down or the perceived value. This spike was picked up by the media, and it derailed everything. Suddenly, Oracle’s grand plan seemed impossible to pull off, and we now believe that the whole data center complex may be stalled. Oracle stock went into free fall, going from $328 down to $178, where it landed two years ago, until it went up a little bit today.”
6. Sweetgreen, Inc. (NYSE:SG)
Number of Hedge Fund Holders: 25
Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer shared his takes on. Noting that the stock is down, a caller asked if they should hold, sell, or buy more. In response, Cramer said:
“Okay, Sweetgreen has decent revenue growth, but it just can’t seem to turn it into a profit. They’ve got to start making money, I got to tell you, or else I think it is going to go even lower. The one that we like, it’s a very hard group, just so you know, but we like Texas Roadhouse, which has been coming back big. And if we get any break in cattle… cattle’s going up, that thing could go to $200. It’s at $177, up $2.64…. And I like that one much more than [the] one you’re in.”
Sweetgreen, Inc. (NYSE:SG) operates fast-casual restaurants that provide healthy food and beverages. The company provides online and mobile ordering. During the episode aired on November 13, 2025, Cramer highlighted a major challenge faced by the company, as he said:
“Over the past few weeks, it looks like the experiential economy ain’t what it used to be… In the last couple of weeks, we’ve gotten some disappointing earnings from companies that have been big winners in this space.
For starters, last week, we got this not so hot numbers from three different fast casual chains, Chipotle, Cava, which have been doing very well, and Sweetgreen, not a good performer. All three missed expectations. All three stocks got hammered last week… All three cited the same issue: younger customers are cutting back on meals away from home and visiting the restaurants less frequently. Dreadful.”
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 76
Cheniere Energy, Inc. (NYSE:LNG) is one of the stocks Jim Cramer shared his takes on. Noting that the stock has been sliding for nearly a year now, a caller asked if it is a good time to invest in it or if the decline would continue. Cramer replied:
“Well, you know, I’ve got to tell you, it’s not my favorite right here. I prefer, as I say in How to Make Money in Any Market, I much more prefer the higher-yielding ones. I think ONEOK is better, and I really like Enterprise Product Partners here. I think those are better, more growth, better yield.”
Cheniere Energy, Inc. (NYSE:LNG) owns and operates LNG terminals and supply pipelines. The company supports the production, transportation, and marketing of liquefied natural gas. During the December 12, 2025, episode, a caller inquired about the stock, and Cramer responded:
“Well, what I want you to do is I want you to own, because they [have]… done a lot of work. Cheniere Energy Partners with a 6.27% yield… It’s… cheap, and you got that yield. I think that’s a better play for you.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer shared his takes on. Cramer highlighted the case of “mistaken identity” with the stock, as he remarked:
“Finally, there are stocks that never should have underperformed to begin with. Now, these were cases of what I call mistaken identity, chief among them is the stock of Amazon. This hyperscaler, one of the greatest companies in history, saw its stock pull up barely more than 5% in a year where the S&P was up 16%… When last Amazon reported, the stock soared from $222 to $254. Oh, it was a huge move. But it then proceeded to give up the entire gain and became a laggard again. The stock convinced people, the stock, okay, not the company, the stock’s decline convinced people there must be something terribly wrong with the business. But it sure wasn’t from its incredibly lucrative Amazon Web Services business, which is starting to reaccelerate. It wasn’t from its retail business, which was amazingly strong. The advertising business, total gravy, exceptional. So, what went wrong? I’ve looked, and I’ve looked, and I’ve looked… I re-read the conference call from the last quarter, saw all the contemporary research notes before I came out today, and I am telling you there was absolutely nothing wrong, nothing except perhaps an expectation on the part of some analysts that retail sales might be weak, which they weren’t. So now Amazon’s playing catch-up based on the mistaken identity that it was a loser. It never was.”
Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 76
Honeywell International Inc. (NASDAQ:HON) is one of the stocks Jim Cramer shared his takes on. Cramer mentioned the stock during the episode and commented:
“I’m also seeing rebounds in some underperforming industrial stocks that are not part of the data center business, which therefore made them uninvestable in 2025. These were beaten down because they lacked AI-related momentum. I’m here, I’m talking about a Honeywell or Dover, two conglomerates, with one, Honeywell, currently undergoing a breakup. They’ve been hapless performers, but hope springs eternal, even for me, that they’ll get these right this time. That’s why we’re approaching that… [with] a positive attitude for the Charitable Trust.”
Honeywell International Inc. (NASDAQ:HON) develops and sells technologies and solutions across aerospace, industrial automation, building management, and energy and sustainability. Cramer highlighted the company’s breakup during the October 17, 2025, episode, as he stated:
“Honeywell reports too and this stock feels totally snakebit. Honeywell’s breaking into three viable companies, including a pure play aerospace business that I think is woefully undervalued versus competitors. I’m not saying don’t worry about the numbers. I’m saying look through them because the breakup is coming and the stock’s been hammered.”
2. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 64
Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer shared his takes on. Cramer showed some optimism around the future of the company, as he said:
“Then there are the hope-spring-eternal buyers. I see a bunch of these stories, and I’m involved in some of them for the Charitable Trust, stocks like Nike, like Starbucks, which have seen their share price just obliterated by the poor performance of previous CEOs. I see green shoots in both these companies. And their strength, I’ve got to tell you, their strength this year so far reflects a real rebound… As for Starbucks, I think this is the year it comes back, but I have to tell you that it’s been a tough run for CEO Brian Niccol… of Chipotle, as it seems like the Seattle-based coffee chain was far more broken than anyone realized. Lots of poorly performing stores, many of them are being closed. Big execution issues, those are being fixed. Miserable throughput, that’s already been fixed. I think everything is changing for the better.”
Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, beverages, and food products through its stores and licensed outlets. The company’s brands include Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, and Starbucks Reserve.
1. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 89
NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer shared his takes on. Cramer discussed the insider buying in the stock, as he remarked:
“Then there are the hope-spring-eternal buyers. I see a bunch of these stories, and I’m involved in some of them for the Charitable Trust, stocks like Nike, like Starbucks, which have seen their share price just obliterated by the poor performance of previous CEOs. I see green shoots in both these companies. And their strength, I’ve got to tell you, their strength this year so far reflects a real rebound. The three insider buyers of Nike, the CEO, a board member who was the former CEO of Intel, and, of course, Tim Cook, CEO of Apple, all signal that the business is indeed turning. Remember, insiders might sell for a lot of reasons, but they only buy because they think a stock’s headed higher longer term. They can’t flip.”
NIKE, Inc. (NYSE:NKE) is an athletic and casual footwear, apparel, equipment, and accessories company that sells its products under brands, including Nike, Jordan, and Converse. SGA U.S. Large Cap Growth Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its third quarter 2025 investor letter:
“NIKE, Inc. (NYSE:NKE) is an iconic sportswear brand that has built its business around promoting a healthier lifestyle, offering products that combine performance, utility, and durability, all driven by technology and innovation. Nike’s gear has become a staple not only for athletes but also for casual wearers, propelled by innovation and strong execution in marketing and supply chain management. The company’s pricing power is anchored in its brand strength and technology, supported by a robust supply chain and distribution network. Competitors have lower margins, so any price war would impact them more than Nike. Repeatable revenues are driven by the nature of sportswear, which wears out over time and leads to repeat purchases, with 65% of sales coming from shoes, a category known for customer loyalty and stickiness. Nike’s revenue in developed markets is growing at mid-single-digit rates, while the rest of the world is growing even faster, fueled by increasing sports participation globally, rising sports spend per capita, greater e-commerce sales, and deeper penetration into emerging markets.
We had originally purchased Nike in U.S. Large Cap Growth portfolios in 2015 and held the position for nearly six years. Late in 2021, we liquidated the position due to a heightened valuation and short-term concerns around manufacturing and supply chain issues, as well as a volatile operating environment in China. Nike is currently embarking upon a change in strategic direction following a CEO transition to Elliott Hill, who is now roughly a year into his tenure. The company has rehired significant product/innovation talent, begun to reengage with previously abandoned wholesale distribution accounts, and is in the midst of managing down its classic franchises (to be essentially complete within the next six months) and opening up room in the marketplace for a strong flow of new innovative products in the coming quarters. We believe the business has bottomed out, with improvements expected each quarter going forward. Nike’s most recent financial results showed some early positive indications on product innovation and an improving order book. We see a pathway for the company to expand its operating margins by approximately 500bps over the next three years to be closer to historical levels, driven by a return to organic revenue growth and operating leverage, which will support strong double-digit earnings growth for the next several years. We have great confidence in Nike’s new leadership and expect they will succeed in the revitalization of an iconic business, delivering a sharp rebound in earnings growth in 2026 and 2027 following this reset in 2025. …” (Click here to read the full text)
While we acknowledge the potential of NIKE, Inc. (NYSE:NKE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NKE and that has 100x upside potential, check out our report about this cheapest AI stock.
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