In this article, we will look at the stocks Jim Cramer discussed during his recent rally discussion in several AI-related stocks. On Monday, the host of CNBC’s Mad Money discussed NVIDIA’s keynote presentation at the recently held COMPUTEX conference.
Look, I get it, the bull case in the data center has always seemed too good to be true. So many companies spending hundreds of billions of dollars sounds like something right out of the dot-com period. It’s very easy to assume that there’s no way these expenditures are going to make any sense, and the only real winner is going to be NVIDIA because they make the chips. Come on, that’s the wrap in a nutshell, you know that. And when Iran isn’t dominating the headlines, it’s what we tend to fall back on. Today was the day when the Iranians broke off talks, claiming the U.S. government is dragging its feet in the talks to end the war. Yet somehow, the averages still clawed their way back.
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Explaining why stocks were able to regain ground, Cramer said it was because of the positive comments by NVIDIA CEO Jensen Huang at the conference. He noted that the session highlighted the potential of data centers as a broad and credible investment theme rather than a narrow trade tied to a handful of companies. He said that the developments showcased during the day helped emphasize the idea that the so-called fourth industrial revolution may prove to be less susceptible to the boom-and-bust cycles many investors have feared. He also pointed out that Huang’s vision for the future of AI infrastructure seemed to connect with Wall Street, as several AI-related stocks moved higher following the presentation.
But the bottom line: This time, NVIDIA truly delivered just when you least expected. There’s a reason I told you to keep an eye on this COMPUTEX conference. NVIDIA’s going to break out now, I think, as its dominance reasserts itself and the investors realise that somehow, it’s now the least expensive stock in the entire group.
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 June 1. We listed the stocks in the order that Cramer mentioned them.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Jim Cramer Talked About 16 Stocks Like Micron and Dell, Along With the AI Infrastructure Spending
16. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
GE HealthCare Technologies Inc. (NASDAQ:GEHC) was among the stocks Jim Cramer talked about as he discussed the recent rally in several AI-related stocks. Cramer highlighted the stock’s valuation during the episode, as he said:
GE HealthCare has 3 to 4% organic growth. Sells at 13 times earnings, maybe it’s too expensive. These once premium growth stocks are now selling at ever-growing discounts to the broader market.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) sells medical equipment, including MRI machines, CT scanners, and ultrasound systems, to hospitals. During the January 16 episode, a caller asked whether they should sell their 83 shares of the stock. In response, Cramer commented:
Okay, I worked for GE, so I got, I’m not allowed to own stock. I want to make that point, but I got the same thing because I had worked for them before when they… paid me with stock. I took a hard look at GE Healthcare and decided that it didn’t have anywhere near the things that were going for GE Vernova and GE Aerospace. And I think you should sell the stock. I just don’t think it’s what you want to own. If you want to own a medical device, you want to own Medtronic, okay… or Abbott. But Abbott reports next week, so why don’t you wait and see how they go?
15. Danaher Corporation (NYSE:DHR)
Danaher Corporation (NYSE:DHR) was among the stocks Jim Cramer talked about as he discussed the recent rally in several AI-related stocks. Cramer compared the company’s valuation to its organic growth, as he remarked:
Danaher, once among the most revered companies in the entire market, still trades at 21 times earnings. But at these prices, it’s clearly overvalued because it’s only putting up 4 to 6% organic growth. Thermo Fisher’s trading at less than 20 times earnings, but it has a 1% organic growth rate. Management was guiding for 3 to 4% later.
Danaher Corporation (NYSE:DHR) provides instruments, consumables, software, and services used in bioprocessing, life sciences research, and clinical diagnostics. Cramer mentioned the company during the May 11 episode and said:
For instance, Danaher, another one-time excellent company, has seen the stock just get pulverized after not-so-great quarters, or I should say a savage string of not-so-great quarters. The stock of the medical and diagnostic company is down… 27% year to date, and just head shaking, this is Danaher. Those two, of course, aren’t alone. Boston Scientific, Intuitive Surgical, Medtronic, ResMed, Stryker, Zimmer Biomet, they all hit new lows. That’s a remarkable confluence of true ugliness from some pretty darn good companies.
