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.
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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.
14. Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 52
Rubrik, Inc. (NYSE:RBRK) is one of the stocks Jim Cramer shared his thoughts on. Toward the end of the lightning round, a caller sought Cramer’s opinion of the stock, and he replied:
Here’s the problem. These are all the same, okay? It doesn’t really matter. What you have to do is you have to wait its shake out. The price-to-earnings multiples are going down. When we see a bottom, we will make determinations. But right now, I do not like, do I look like a butcher block to you? I mean, honestly. I do not like falling knives, and I will not change my way.
Rubrik, Inc. (NYSE:RBRK) provides data security and protection solutions across cloud, enterprise, and SaaS environments. The company’s platform delivers threat analytics, cyber recovery, and data security posture management. Cramer mentioned the company during the January 15 episode and said:
Sometimes, when you report a truly great quarter, your stock soars, and then a few days later, comes right back down. Take Rubrik, the data security company that turned in a blowout quarter a little over a month ago. It was a huge beat that sent the stock legitimately flying from $70 to $86 the next day, and it charged higher for the next couple of sessions before peaking at $92 and change. Since then, Rubrik’s pulled back hard, coming down to around $69 today, meaning you’re basically getting that fantastic quarter for free.
13. Carrier Global Corporation (NYSE:CARR)
Number of Hedge Fund Holders: 48
Carrier Global Corporation (NYSE:CARR) is one of the stocks Jim Cramer shared his thoughts on. A caller asked if they should hold onto their position in the stock or sell it. In response, Cramer said:
I think Dave Gitlin’s doing a good job. He made an acquisition. Some people don’t like it… You know, to rely on Europe turned out to be a diceier thing, and he relied on Europe, but he’ll come through with it fine. I think you buy it now and put it away.
Carrier Global Corporation (NYSE:CARR) provides climate and energy solutions through its HVAC and refrigeration products and services. Cramer noted that he really likes the company during the episode that aired on October 28, 2025. He remarked:
Speaking of housing, Carrier Global, a company I really like, reported this morning. While the heating, ventilation, air conditioning company delivered in-line sales with a solid earnings beat, and by the way, they have a good data center business, there was some surprising softness in its residential business… Now, their commercial business is on fire, alright. It does the climate control and the data center. It’s the residential division, it was surprisingly weak, but again, housing’s weak, so it’s going to be weak.
12. AAR Corp. (NYSE:AIR)
Number of Hedge Fund Holders: 19
AAR Corp. (NYSE:AIR) is one of the stocks Jim Cramer shared his thoughts on. A caller sought Cramer’s thoughts on the stock, and he remarked:
Okay, at times, I’ve been worried about this because the, believe it or not, the gross yield is too high, and this is one of those times. That yield’s 15%. That is worrisome for me. That is not a bargain. When you see that kind of height in a yield, that is not a bargain.
AAR Corp. (NYSE:AIR) supplies aircraft parts and components for commercial and defense aviation and offers services ranging from airframe inspections to interior refurbishments. A caller asked about the stock during the January 27 episode, and Cramer responded:
I’ve been recommending AIR forever, and we know it’s up 27% for the year. I saw that Gold, I think it was Goldman that started it with a Neutral. This thing is can’t miss. We had John Holmes on recently, and it is just part of the great aerospace boom that it has no sign of slowing down.
11. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 37
Rio Tinto Group (NYSE:RIO) is one of the stocks Jim Cramer shared his thoughts on. Answering a caller’s query about the stock during the lightning round, Cramer said:
I have liked Rio… I used to call it, let’s put it this way, I like Rio so much, even from when I was at Goldman Sachs in the 80s, and I just think you should just go in and own it. I just think it’s a great hedge against all the chaos that we see in the world.
Rio Tinto Group (NYSE:RIO) is a mining company that extracts and processes different resources, including iron ore, aluminum, copper, gold, and minerals like lithium and borates. Cullen Capital Management, LLC stated the following regarding Rio Tinto Group (NYSE:RIO) in its third quarter 2025 investor letter:
Our position in Rio Tinto Group (NYSE:RIO) was sold in the quarter. As the world’s largest producer of iron ore and one of the largest producers of aluminum, copper, and other commodities that are vital to global GDP growth, Rio Tinto has strong long-term growth potential. However, we exited the position due to a number of challenges in the near and medium term, including a potential state of global oversupply of iron ore, which could lead to declining prices in the coming quarters and years. Additionally, with over half of total company revenue from China, declining iron ore demand from the Chinse construction and property sectors could continue to weigh on sales.
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer shared his thoughts on. When a caller asked if Cramer still likes the company, he stated:
Yes, I like Palantir. Now, Palantir’s trading right now with the cohort that is ServiceNow and Salesforce. By the way, those are great companies. But I think that right, look, everything I hear when you hire them, business does better. And that’s why I liked it, not momentum. So I can’t back away from it right here. If anything, I would say a great opportunity to buy Palantir, and it’s not like I talked to Dr. Alex Karp.
Palantir Technologies Inc. (NASDAQ:PLTR) develops data analytics and AI software platforms, including Gotham, Foundry, Apollo, and Palantir Artificial Intelligence Platform, that help organizations integrate, analyze, and act on complex data. A caller asked for Cramer’s opinion on the stock during the January 22 episode, as he commented:
I like Palantir. I mean, I like Palantir, but I’m watching, of course… the unbelievable work that our team is doing over in Davos. And over and over and over again, what do you hear? Well, Palantir’s great. Palantir’s great. Palantir’s great. I would not leave Palantir. I know it’s momentum. It’s not going away.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 66
International Business Machines Corporation (NYSE:IBM) is one of the stocks Jim Cramer shared his thoughts on. Cramer believes that the stock has “a lot more room to run,” as he stated:
… They reported, and boy, that stock soared 5% today in response to an unambiguously good quarter. Closed at $309… Long story short, it was an amazing quarter, and I’m betting IBM has a lot more room to run even after today’s rally. Now, some of that’s simply because IBM rolled out a terrific full-year forecast for 2026 last night… IBM’s the rare AI winner with a fairly low price-to-earnings multiple. Sometimes, you gotta find some of those. Even after today’s rally, the stock sells for a little more than 25 times this year’s earnings estimates. And the estimates may well prove to be too low as IBM has beaten the earnings expectations for 17 consecutive quarters. Of course, 25 times earnings is still a bit of a premium to the broader market. The S&P trades at 22 times this year’s earnings estimates, but I’m happy to pay a premium for such a high-quality story. It’s still below these big software-as-a-service companies’ multiples.
So here’s the bottom line: IBM’s nearly doubled since I started recommending it just over two years ago, and after last night’s quarter, I think its rally’s far from over. The company’s just got so much growth coming from mainframes, and software, and consulting. Best of all, the stock still isn’t expensive here. I say buy some IBM if you don’t own it already, and recognize that CEO Krishna has turbocharged the sales and earnings so much that it would be a gift if this $309 stock were to fall below $300.
International Business Machines Corporation (NYSE:IBM) provides software, consulting, and cloud and on-site technology solutions, along with financing to help clients use its products.
8. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 47
Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the stocks Jim Cramer shared his thoughts on. Cramer called the management’s full-year forecast “spectacular” as he said:
On a freezing cold day here in New York and a not-so-hot day for the averages, I want to focus on warm weather and sunshine. I’m talking about Royal Caribbean Cruises, the largest cruise line in the world by market capitalization, which reported a solid quarter this morning, then gave us incredibly strong guidance. Sent the stock up nearly 19% today, second largest gainer in today’s session. Management was very bullish on recent booking trends, and their full-year forecast for 2026 is spectacular.
Royal Caribbean Cruises Ltd. (NYSE:RCL) operates cruise vacations under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands. Cramer highlighted the stock during the November 13, 2025, episode and said:
Over the past few weeks, it looks like the experiential economy ain’t what it used to be… Another clue… came from the cruise lines, which have been some of the biggest winners in the experiential economy for the past few years. Royal Caribbean, which had been the best of the bunch, is now down 20% since it reported in late October. Norwegian Cruise Line is off roughly 16% since reported last Tuesday.
Now, their actual numbers really weren’t all that bad, especially Royal Caribbean, which raised its full-year earnings forecast. But their fourth quarter revenue outlook was a tad disappointing, and that was enough to make investors feel like demand might be waning, which torpedoed the stock. Management is insisting that demand remains robust and has a strong book position heading into 2026.
7. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the stocks Jim Cramer shared his thoughts on. The first caller of the episode inquired about the stock, and Cramer replied:
I kind of liked it when I spoke to them. I gotta tell you, I kind of warmed up… I was in San Francisco, and I said, you know what? I get that stock a little down more… But I love Eli Lilly and David Ricks, and what can I say? You know, as long as Eli Lilly and David Ricks are putting up those numbers and they get that pill form soon, I think that Novo is a hold, not a buy.
Novo Nordisk A/S (NYSE:NVO) manufactures pharmaceuticals for chronic conditions, including diabetes, obesity, and rare blood or endocrine disorders. The company also produces some medical devices. During the January 10 episode, a caller asked if the stock was a buy, sell, or hold. Cramer responded similarly as he said:
No, I would hold it. I met with the CEO last week. I kind of, I liked him a lot. Now, I met with Dave Ricks from Lilly, and you know, he’s my favorite, but I’m not going to go against owning some Novo. I think they’re making a turn here. I think that head start they have in the pill is very good.
6. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer shared his thoughts on. Cramer said that the company is “running the game,” as he remarked:
Is Amazon paper or scissors? I think it’s paper. But this game changes so quickly, you may actually have to rush the judgment. Unless, of course, you’re NVIDIA. They aren’t playing a game at all. They’re running the game. They’re the house. That’s the best place to be.
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies. Cramer highlighted his interview with the CEO during the January 27 episode, as he commented:
Hardly a day goes by when we don’t see some government intervention in the economy. Yesterday, I spoke to Jensen Huang, CEO of NVIDIA. He was in China… He seemed confident that he could win some meaningful Chinese business, but he said he preferred to keep the potential contracts out of any earnings estimate for the time being.
We ran out of time in the interview before I could ask him how NVIDIA would account for the 25% of China sales that are supposed to go to the US government as part of the bargain the firm struck with the president… NVIDIA stock, by the way, finally showed signs of life. It’s only up 1% for the year. I think that that’s ridiculous. I think it should catch up with the rest of some of these big Mag Seven names.
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer shared his thoughts on. Cramer was bullish on the company, as he said:
… I bet when we hear from them next week, we’ll realize, nuh-uh, AI search winner. Alphabet may be next week’s rock, and it may be even making more money from AI than Meta.
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play. Cramer said that the company looks like the “only winner in AI” during the episode aired on January 13. The Mad Money host commented:
Hey, you want hate? I’ll give you hate. All you have to do is declare you’re going for clean energy to power your data centers. If Microsoft and Meta Platforms were to abandon their dislike of fossil fuels and go all in, say, on despised clean coal, or at least cleaner natural gas, they could actually lift their heads and not have them blown off. Without cheap energy, though, what really matters is that Alphabet increasingly looks like the only winner in AI for the moment. And it’s partnered with Apple to power Siri and who knows what else. Winner.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the stocks Jim Cramer shared his thoughts on. Cramer highlighted the company’s “magnificent quarter,” as he said:
After the close, Apple reported a magnificent quarter, just tonight. A robust top and bottom line beat driven by staggering levels of demand for the iPhone 17 that nobody was looking for. Wall Street was looking for iPhone sales of less than $79 billion. Number came in at $85 billion. I knew they were popular, but I mean, come on. I underestimated them. Now, we still have to see what they say on the call about some important topics like how they’ll deal with skyrocketing memory prices. Still, after seeing these great numbers for the last quarter, I have an idea. I’ve been thinking, I’ve been thinking, how about own it, don’t trade it?
Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the stocks Jim Cramer shared his thoughts on. Cramer showed significant optimism toward the company, as he remarked:
I know it’s hard to believe how quickly this market can change its attitude. Last night, I heard a disastrous car company speak. Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session. I didn’t like it as a car company. Boy, I love it as a Cybercab and humanoid robot juggernaut. Call me a buyer and give me five robots while I’m at it.
Tesla, Inc. (NASDAQ:TSLA) designs and sells electric vehicles and also develops and installs solar energy and storage systems for residential, commercial, and industrial customers. In addition, the company is working on autonomous vehicles and robots. Cramer highlighted the company’s recent quarter during the January 28 episode, as he stated:
Tesla reported too. As I told you on Monday, this is the Magnificent Seven stock where the numbers barely matter, especially this time, because we already had Tesla’s production and delivery results, both of which we know fell short of expectations. So when Tesla reported tonight and delivered a surprisingly strong set of numbers, top and bottom line beat for the fourth quarter, very impressive, $1.4 billion in free cash flow, that was good enough to send the stock higher in after-hours trading. Hey, by the way, robot and robotaxi intros look ahead of expectations. Real driver of the after-hours moves. We can’t wait to see that stuff.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer shared his thoughts on. Cramer called the company’s CEO and CFO “smart.” He said:
Meanwhile, Microsoft, perennial rock, isn’t spending enough to meet the demand for AI, or at least in the right places, because it seems to be putting its resources behind the wrong stuff. They’ve become the scissors, and they got crushed, down 10%. Truly horrific, horrible to watch… It’s tough to watch this great business, this rock, play the scissors. There’s so many amazing things about this company, which has dominant software for 40 years, has been unassailable until last night when we heard, frankly, a convoluted story… It said that Microsoft isn’t going to spend enough money to meet its artificial intelligence demand. But at the same time, it was proud that it had 15 million paid users of Copilot. 15 million. Wait a second.
They have 1.5 billion users. They were proud of that 1% of these people who pay to use Copilot. How many use Clippy? What does it tell you? How about that maybe Copilot just isn’t that big a winner? It’s like Microsoft makes dog food that the dogs don’t want, right? And somehow, they think if they slap new and improved on the side of the can, the dogs will clamor for it. Dogs can’t read… When I listened to the conference call, I could only conclude one thing. Unlike Meta, Microsoft may not be making all that money on AI even after all the massive investments in OpenAI and all that stuff. Certainly less than expected…
Is it time to give up on Microsoft? What are you, out of your mind? Absolutely not. Remember, this is Microsoft. Remember the game. Meta morphed from loser to winner in one quarter. Microsoft can do the same. It’s just gotta, kind of have to bite the bullet here. I haven’t bought this stock for my Charitable Trust in two years. We have a sizable position, don’t need to. But I’m betting that next time around, Microsoft could come out on top, and I’m looking at a level to buy Microsoft. Satya Nadella and CFO Amy Hood will figure it out. They’re smart.
Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer shared his thoughts on. Cramer noted that “Meta knows everything about you,” as he commented:
… It’s hard to believe that Meta, which had been written off as a company that spends way too much on AI just last quarter, could rally more than 10% today as those investments paid off in spades. Last quarter, Meta had been the scissors. This time, it’s the rock… Let’s speak truth right here, right now. I listen to CEOs constantly. I read their words, I hear their calls, I talk to them. And until last night, I hadn’t heard a single executive who actually uses AI, not participates in the making of it, but use it as an actual client state unequivocally, just with no caveats, that AI is the greatest force multiplier, that it can make its business fortunes, that it’s accelerating the sales and earnings, that AI is changing the company’s fortunes in a way that is just extraordinary.
And last night, it finally happened, and it is Meta. Leave it to Mark Zuckerberg from Meta to say that AI has allowed his company to offer the greatest advertising vehicle in the world aimed at his user base. Oh, by the way, it is just 3.5 billion… daily active users. It’s like half the people in the world, for heaven’s sake, or like, close to it.
This Meta knows everything about you… It could get you to buy something you never thought about. Zuckerberg, where is he? Is he at his desk?… No, he’s in your cerebral cortex…. He’s in your cell. He’s in your darn vagus nerve, and his company will present your brain with exactly what you want. You’ll watch the darned accelerated computing make sure of that because the video’s better and cleaner than ever, and you will buy what they advertise because generative AI is finally that powerful. No more scissors. This one is a rock for certain. It’s not done going higher.
Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company’s portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and products in virtual and augmented reality.
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