Jim Cramer, the host of Mad Money, said on Thursday that investors should not give up on hyperscalers.
Markets can be capricious. Markets can be moronic. But if you own stocks, the market’s always right. There’s no alternate universe. So it doesn’t matter if… the market’s literally playing rock, paper, scissors, with Meta as the rock and Microsoft as the scissors. You have to deal with the closing prices, and they can be brutal.
READ ALSO: Jim Cramer’s Takes on 19 Stocks and Navigating Market Shortages and Jim Cramer Talked About These 12 Stocks and the Memory Shortage.
Talking about artificial intelligence, Cramer said investors keep hearing that AI is devouring software in the same way software once overtook hardware. He went on to say that AI currently has an almost unlimited appetite, and software-as-a-service companies that were once seen as powerful long-term growth stories are now part of that feast. He noted that Microsoft never appeared to be on the menu until very recently. He said that Microsoft played the role of scissors, Meta played the rock, and the market outcome left little room for debate.
Now, if you only have one takeaway from this entire segment that I’ve just gone through, other than the vagus nerve thing, the bottom line is you must not give up on any of these companies because they are run by really smart people with lots of money. They’re nation-states.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 29. 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 Thoughts on These 16 Stocks
16. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer shared his thoughts on. Discussing that Wall Street believes that ServiceNow’s growth cannot be counted on any longer, Cramer said:
It’s saying the same thing, by the way, about Salesforce, another software company that’s doing fabulously with a stock that’s also seeing multiple compression… Personally, if I were running a company, I would hire ServiceNow and Salesforce, too. They’re really great. But I accept the market’s judgment, at least for now, because I can’t fight. It’s too powerful, and it doesn’t matter what Bill does or says. Doesn’t matter what Marc Benioff says at Salesforce.
These stocks are going to trade like they’re no longer growth names, even as their growth remains strong. Can the market be wrong? Of course. It’s wrong all the time. Can you get in front of a freight train that is the shrinking price-to-earnings multiple? Maybe not now. Not yet. Soon, when we see how low the multiple can go and it will bottom, these may be worth buying because we’re dealing with great companies. Right now, that doesn’t seem to matter, but I bet it won’t stay like that forever. Terrific companies have a way of bouncing back, but not until their multiples bottom and start to turn around.
Salesforce, Inc. (NYSE:CRM) provides CRM-focused tools that help businesses manage customer interactions, use AI agents, analyze data, collaborate, and run marketing, commerce, and field service operations.
15. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer shared his thoughts on. Cramer praised the company and CEO, but added the stock has “become a nightmare,” as he commented:
First, let me just say that ServiceNow is a tremendous company with a highly respected CEO… I know dozens of their clients. I’ve never heard anything but praise. However, this stock has become a nightmare, down more than 50% over the last 12 months, including a nearly 10% beating today in response to last night’s quarter. Even though, again, the actual numbers were excellent. So what the heck’s going on here? The earnings are fine. The problem is the M, what people will pay for those earnings. ServiceNow’s multiple is shrinking.
The M is being compressed, and it doesn’t seem to matter what Bill does or says. He can order up a huge buyback as he did last night. He can break records when it comes to how fast his very lucrative business has grown. He can show that ServiceNow’s core business isn’t being cannibalized by its AI component at all. Business is better than ever. But the market just doesn’t believe him about the future, about the forecast…
So the question isn’t whether ServiceNow will keep delivering earnings. I think it will. It doesn’t matter. Last night, when I was interviewing Bill, he was emphatic about the client wins, the incredible growth, the buyback. Yet, out of the corner of my eye… I just saw the stock being hammered mercilessly, and I said, I guess what he says doesn’t matter. It was all going down before he even went on the conference call. The M can be brutal.
ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through AI, automation, low-code tools, analytics, and a suite of IT, security, customer service, and employee experience products.
Hedge Fund Resource Center