On Wednesday’s episode of Mad Money, host Jim Cramer delved into the surging influence of artificial intelligence and the ongoing data center expansion shaping the stock market.

“AI-related stocks have accounted for 75% of the S&P 500’s returns, 80% of earnings growth, and 90% of capital spending growth since ChatGPT launched in November of 2022.  That’s incredible. It means two things. One is that there really is a new industrial revolution, as NVIDIA CEO Jensen Huang suggested would happen when I first talked about it seven years ago. But two is that there isn’t all that much growth in the economy away from AI.”

READ ALSO: Jim Cramer Talked About These Relatively 19 Cheap S&P 500 Stocks and Jim Cramer Shared His Opinions on These 14 Stocks.

Cramer also noted how traditional sectors such as housing, infrastructure, and office development are being overshadowed by the enormous investment pouring into data centers. He mentioned that it is not likely to slow down anytime soon. He suggested that the Federal Reserve may need to reassess its approach, mentioning that the U.S. economy is essentially split in two, one part being driven by data centers and thriving, while the rest is sluggish and more in need of rate cuts. He added that as long as the data center investment is funded by internal resources rather than debt, there is a shot at avoiding an economic bubble.

“While I still believe AI represents a new industrial revolution, I do fear the data center blob. I’d feel much better about all of the spending if it were done with existing cash flow from publicly traded companies. Once we jump that, and I feel we’re in danger of doing that with OpenAI, even as it is doing incredibly well, then we are in a much higher risk situation, one that makes me fear that when I see the data center blob, I’ll have to hide my eyes because maybe it’s a documentary.”

Our Methodology

For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 24. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Jim Cramer Shed Light on These 11 Stocks

11. Watts Water Technologies, Inc. (NYSE:WTS)

Number of Hedge Fund Holders: 29

Watts Water Technologies, Inc. (NYSE:WTS) is one of the stocks Jim Cramer shed light on. A caller asked if they should “forever hold” onto the stock, and Cramer replied:

“The answer is yes. I think that this is a company that is exactly the kind of thing that you don’t want to trade it, you want to own it. It’s just a great American manufacturer. Stay long.”

Watts Water Technologies, Inc. (NYSE:WTS) provides systems and products for fluid and energy management in buildings, including flow control, HVAC, drainage, water reuse, and water quality solutions. On August 6, the company reported its Q2 non-GAAP earnings of $3.09, outperforming the estimates by $0.46, and revenue of $643.7 million, which beat the estimates by $30 million. Watts Water Technologies, Inc. (NYSE:WTS) raised its full-year outlook, projecting reported sales growth of 2% to 5% and organic sales growth from flat to 3%. Operating margin is expected to be in the range of 17.2% to 17.8%, while adjusted operating margin is forecasted to be between 18.2% and 18.8%, including estimated tariff impacts and related actions as of August 6, 2025.

10. The Hershey Company (NYSE:HSY)

Number of Hedge Fund Holders: 40

The Hershey Company (NYSE:HSY) is one of the stocks Jim Cramer shed light on. A caller inquired after Cramer’s feelings on the stock, and he said:

“Okay, I think Hershey is, is in [an] unassailable position, in that commodity prices are, you know, I think cocoa’s peaked. What matters is that no one’s ever come in to beat these guys. A lot of people want to be in it for a takeover. Forget the takeover. It’s more of an earnings play. It’s one of the few food stocks that are doing well. I think that can continue.”

The Hershey Company (NYSE:HSY) produces and sells confectionery, snacks, gum, mints, protein bars, and pantry items under brands such as Hershey’s, Reese’s, Kit Kat, Jolly Rancher, SkinnyPop, and Dot’s Homestyle Pretzels. Cramer discussed the company in a July episode, as he commented:

“If you really want overlooked, there’s the other side of the story, Hershey, down big yesterday and today. I get it. They’re losing the steady hand of CEO of Michele Buck and getting Tanner, who only spent about a year and a half at Wendy’s, where he departed. Even though Tanner originally had a consumer packaged goods background, he’d been in PepsiCo for 32 years before Wendy’s, it always raises eyebrows when a CEO flees a struggling company to work somewhere else in a hurry.

Plus, Tanner was the guy who brought dynamic pricing, where they jack up prices in periods of high demand to fast food. Well, that didn’t go down well. The other reason Hershey’s getting hit, if you were hoping for a takeover here, hiring this new CEO seems to take that off the table. It was a clarion call to sell. And if you didn’t get out when it was announced because you were busy paying only attention to the president, you may have caught a 14-point decline, and you want to avoid a 14-point decline all the time. That’s hazardous.”