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.”
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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.”
9. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 51
Generac Holdings Inc. (NYSE:GNRC) is one of the stocks Jim Cramer shed light on. When a caller asked about the stock during the episode, Cramer said:
“I do have a Generac… So it’s just, it’s a good investment. I think others who realize that the grid is so fraught would be thinking about Generac, too. I think you’re dead right. I think the great, that stock is a great long-term own…”
Generac Holdings Inc. (NYSE:GNRC) develops energy technology products, including standby and portable generators, battery storage, smart home solutions, outdoor power equipment, and industrial energy systems. In addition, the company provides software for managing distributed energy resources and distributes its products through dealers, retailers, wholesalers, and direct channels. During a June episode, a caller inquired about the stock and Cramer responded:
“Generac, okay. Alright, so Generac got hit by tariffs. As soon as you hear tariffs, unfortunately, the market runs. I agree with you that it’s a great company, but I’ve gotta tell you something, it’s not a great stock. I know you said a lot of good things, absolutely, but the stock cannot rally if it’s got that kind of tariff problem.”
8. lululemon athletica inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 55
lululemon athletica inc. (NASDAQ:LULU) is one of the stocks Jim Cramer shed light on. A caller who bought the stock at around $334 in early June asked if they should hold and recover losses or sell the position entirely. Cramer replied:
“Well, I think it has fallen too far. It’s down 50%. I think that Calvin McDonald is a person of great wisdom, and I do think that you can catch a bounce. I don’t want to say more than that because I think the prices are too expensive and it’s not differentiated enough, and I felt that way when my favorite Costco came in hard against Lulu.”
lululemon athletica inc. (NASDAQ:LULU) designs and sells athletic apparel, footwear, and accessories for yoga, running, training, and related activities under the lululemon brand. When a caller inquired about the stock during the September 17 episode, Cramer responded:
“I tell you, I stopped liking them when I saw that they sued Costco for a really good product that Costco had. No, I’m not… Look, I think the American people want bargains. I would rather see you own Gap, which is going to be turning around this Athleta. That’s where I would go.”
7. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON) is one of the stocks Jim Cramer shed light on. A caller asked if they should hold it or buy more, and Cramer replied:
“Okay, Honeywell’s part of a whole cohort of industrials that just keeps going down, and I don’t know what to say other than the fact that we’re holding on. We probably, when I talked about this with Jeff Marks this morning, probably looking at 202, 204 to buy more. Not before then. This group is so problematic. I don’t, I’m going to let the pitch come to me.”
Honeywell International Inc. (NASDAQ:HON) provides technologies and solutions across aerospace, industrial automation, building automation, and energy and sustainability. Its products include avionics, propulsion, automation systems, safety products, building control software, clean energy technologies, and advanced materials. During a July episode, Cramer discussed the stock in light of its earnings:
“Alright, help me here. What in the world just happened to the stock of Honeywell, the iconic industrial that’s in the process of breaking itself up? This morning, the company reported what sure looked to me like a good quarter, top and bottom line beat, management raising the full year sales and earnings forecast. That’s what I always like to see.
The stock was climbing in pre-market trading, yet it ultimately got hit and finished the session down 6%. And look, the quarter wasn’t perfect. There was some margin pressure, especially in the aerospace business, but much of the raised guidance comes down to a weak dollar, maybe some acquisitions. Still, I think it’s crazy that the stock pulled back this hard when we are getting so close to a three-way breakup that could really unlock a lot of value for you.”
6. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 74
Western Digital Corporation (NASDAQ:WDC) is one of the stocks Jim Cramer shed light on. When a caller asked about the company during the lightning round, Cramer commented:
“Okay, so after what happened today with Micron, where it reported an unbelievable quarter and it still went down, we’re going to have to wait for Western Digital. You are absolutely right. They’re doing fabulously. That was very clear from the Micron conference call just last night. Well, now we gotta wait because people are going to get a little skittish. They’ll take the stock down. I bet you can buy that stock at $100, not that long from now.”
Western Digital Corporation (NASDAQ:WDC) designs and supplies data storage products and solutions, including HDDs, external and portable drives, data center platforms, NAS systems, and related accessories. During the Squawk on the Street episode aired on September 11, Cramer mentioned the company and said:
“Look at. . .Western Digital. I mean those things are trading at, they are all storage companies. They historically have traded at a very big discount to the S&P, and Western Digital, again, 52 week high today. Trades at 15 times earnings, I’ve seen that thing at 8 times earnings.”
5. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 87
Coinbase Global, Inc. (NASDAQ:COIN) is one of the stocks Jim Cramer shed light on. Answering a caller’s query about the stock, Cramer commented:
“Alright, I want to take a longer-term view on Coinbase because I think that they, in the end, were the first, I know there’s Bullish, but Coinbase stuck its neck out and went out, and all the other firms avoided them or almost isolated them, the typical brokerages. Well, now they last the, you know, these guys laugh last. I think you just own Coinbase. Don’t trade it. Not for a long time, but right now.”
Coinbase Global, Inc. (NASDAQ:COIN) operates a cryptocurrency platform, and it offers consumer financial accounts, institutional trading services, and developer tools for building onchain applications. During a July episode, Cramer discussed the stock as part of his “PARC” stocks. He said:
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer shed light on. Cramer discussed the company’s earnings and said that they were “stellar.” He remarked:
“Last night, Micron reported… But the numbers were good, people. Ignore the trading. No, the numbers were like stellar… Micron only gives guidance for one quarter at a time. That’s been their tradition, but their outlook for the current quarter was excellent…
In short, Micron’s not just riding the data center wave like everybody else. They’re actively innovating and getting products that are ideally suited for the data center to market faster than the competition. And by the way, just so you know, these guys used to be behind a lot of the companies, like in Japan. They’re now ahead of them. And look, as strong as the data center business is, it’s not just the data center. Micron’s other top-end markets are also looking pretty good at this point, even if they’re not putting up the insane numbers…
Bottom line: Coming into Micron’s earnings, I was wondering if the company could report anything that could justify the stock’s incredible run. You know what? That’s exactly what they did. After this Titanic quarter, I think Micron can keep running. I just hope we get more pullbacks like this so that you can buy it on weakness. Yes, the Micron quarter really was that good.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage solutions, including DRAM and NAND products. The company serves markets such as data centers, PCs, mobile devices, automotive, and industrial applications under the Micron and Crucial brands.
3. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 106
GE Vernova Inc. (NYSE:GEV) is one of the stocks Jim Cramer shed light on. A caller asked if the stock is a buy, sell, or hold. In response, Cramer said:
“Man, you know, I like GE Vernova. GE Vernova is a company that makes the natural gas turbines that are needed for so much, including the data center. That’s why it’s been red hot. It is one of the names I have and own for my Charitable Trust.”
GE Vernova Inc. (NYSE:GEV) delivers energy technologies and services across power generation, wind, and electrification. Its portfolio includes gas, nuclear, hydro, steam, wind, solar, storage, and grid solutions. When a caller inquired about the stock’s long-term prospects during the September 17 episode, Cramer replied:
“Okay, I don’t want you to worry about wind. They’ve got a lot of, you know there, there’s a lot of things involved with wind, including maintenance that makes it so I’m not that worried. And it’s a very inexpensive way to, to power, you don’t necessarily need the government. I know it’s a negative, and the stock got hit very badly when the president came out against wind. But I come back and I say, wait a second, this is natural gas. It’s a natural gas story, and every time it is down, I say [buy, buy, buy]. So that’s what the plan is.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer shed light on. During the lightning round, a caller inquired about the stock, and here’s what Mad Money’s host had to say:
“Okay, now, my problem with TSM, it’s gone up much more of late… than NVIDIA. I’d rather be, see you be NVIDIA. Taiwan Semi… That’s what I’d call the foreign risk profile.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces and sells integrated circuits and semiconductor devices. The company’s technologies support high-performance computing, smartphones, IoT, automotive, and consumer electronics. Cramer discussed the company during an April episode, as he commented:
“Taiwan Semiconductor is so low. I have to tell you… Look, I have tremendous conviction that it’s very difficult to politically… say that we will protect Taiwan Semi. I will say this, that is one of the greatest manufacturers in the world, and anybody who thinks that Taiwan Semi should be this low, this cheap is just not a believer in AI, and I am a believer in AI. There we go.”
Since the above comment, the company’s stock is up around 71%.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer shed light on. Cramer discussed the company’s recent deal with OpenAI. He remarked:
“It wasn’t until Oracle’s announcement of nearly $500 billion in orders that I myself started to worry. We quickly learned that a significant portion of those orders came from OpenAI, and I don’t know how OpenAI can raise the money it needs without taking on huge amounts of debt. Although this week, NVIDIA committed to investing a hundred billion dollars in their expansion over time, but not upfront. I heard critics say this deal is what’s known as circular vendor finance, meaning a supplier giving a customer money to buy product.
I look at it very differently. I think NVIDIA is making a very smart investment in OpenAI, which could end up being worth a trillion dollars when it comes public, maybe more. It could give NVIDIA a monster return. The deal makes sense for both sides, which is really what matters.”
NVIDIA Corporation (NASDAQ:NVDA) develops GPUs, AI platforms, data center solutions, and networking technologies for industries spanning gaming, visualization, and automotive.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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