On Friday, Jim Cramer, the host of Mad Money, discussed the recent struggles in the market and how the downturn in momentum stocks has significantly affected aggressive growth investors. He pointed out the complexities of the market on Friday, explaining how things took a drastic turn for the worse. According to Cramer, the market can be divided into two distinct categories: one driven by momentum and the other focused on traditional growth.

“Alright, we got two markets right now. One is all about momentum. The other is all about old-fashioned growth. Momentum is nasty right now. Classic growth, well, it is cruising.”

READ ALSO Jim Cramer’s Game Plan: 17 Stocks in Focus and Jim Cramer Discussed These 11 Stocks Recently

Despite the numbers, Cramer noted that these dynamics were not immediately obvious when you look at the broader averages, with the Dow dropping 749 points, the S&P falling 1.71%, and the Nasdaq plummeting by 2.2% on Friday. He said that investors heavily invested in momentum stocks are finding it increasingly difficult like they are struggling to breathe after the “oxygen” was taken away.

Cramer said that on the other hand, those with investments in established growth stocks and diversified portfolios are faring much better. He mentioned that these stocks have performed well for the first time in quite a while, offering a bit of relief for those holding them. Reflecting on the sharp downturn in the market, Cramer explained that the situation can be traced back to several concerning economic indicators. He added:

“This week, we got a series of readings, key numbers for home sales, consumer sentiment that show true softness, and a sense that maybe things are starting to go off the rails in the economy. Well, that’s incredible given the surprising head of steam we had going into 2025.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 21. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 Talked About These 12 Stocks Recently

12. Innodata Inc. (NASDAQ:INOD)

Number of Hedge Fund Holders: 15

Innodata Inc. (NASDAQ:INOD) is a data engineering company offering services in AI data preparation, data transformation, and model deployment, alongside platforms for transforming medical records and supporting marketing communications and public relations professionals in targeting and analyzing global media. Calling it a “hero stock”, Cramer said:

“What a stock. I mean, yeah, you were right. You’re right. It’s a high multiple stock and it didn’t get hit today. How about that? That is what I call a hero stock.”

Back in December 2024, Cramer noted how expensive Innodata (NASDAQ:INOD) was as he said, “This is now a very expensive stock. And I just think if you take a little off the table, you can always get back in.”

11. Whirlpool Corporation (NYSE:WHR)

Number of Hedge Fund Holders: 25

Cramer lacked enthusiasm when he was asked about Whirlpool Corporation (NYSE:WHR) and suggested: “move on”.

“I didn’t like that quarter at all and that stock is very much in the penalty box, has had a little bit of bounce and you know what I say is move on.”

Whirlpool (NYSE:WHR) designs, manufactures, and sells a range of home appliances, including refrigerators, laundry machines, cooking appliances, dishwashers, and small domestic appliances, along with related accessories. Cramer seems to have maintained his bearish stance on the company as evidenced by the comment he made in September 2024 when he said, “Too inconsistent. They don’t get my buy with that level of inconsistency.”

10. Brookfield Corporation (NYSE:BN)

Number of Hedge Fund Holders: 37

A caller commented on Brookfield Corporation’s (NYSE:BN) CEO Bruce Flatt and Cramer said:

“Man, that guy is so smart. I would wish he’d come on the show. They are real shrewd operators. I wish I knew exactly what they own, but they seem to know everything that is just great. Now that’s the kind of stock that go down and then I would be a buyer, not a seller.”

Brookfield (NYSE:BN) is an alternative asset manager and real estate investment firm that focuses on investments in real estate, renewable power, infrastructure, private equity, and venture capital.

Third Point Management stated the following regarding Brookfield Corporation (NYSE:BN) in its Q4 2024 investor letter:

“Last summer we initiated a position in Brookfield Corporation (NYSE:BN). Brookfield is one of the largest global alternative asset managers with over $500 billion in fee-earning AUM. We believe Brookfield is uniquely positioned to be a beneficiary of the secular growth tailwinds around infrastructure, where it is the preeminent global franchise, and private credit, where it is a top player with $250 billion in fee-earning credit assets. These are two of the fastest growing asset classes within alternatives.

We believe infrastructure is poised to benefit from the dual tailwinds of the enormous global funding gap in traditional infrastructure – estimated at $100 trillion of required investment through 2040 – and significant new demand for digital infrastructure to support data and compute needs. Brookfield has a long track record of first quartile returns within its global infrastructure business and a 100+ year history as an owner-operator of real assets that predates its asset management franchise. In 2022, it raised its offshoot Global Transition fund at in our view an impressive $13 billion first vintage, and in 2023, it closed on the largest infrastructure drawdown fund ever raised at $28 billion..” (Click here to read the full text)

9. Super Micro Computer, Inc. (NASDAQ:SMCI) 

Number of Hedge Fund Holders: 45

When a caller asked about Super Micro Computer, Inc. (NASDAQ:SMCI), Cramer said:

“I think you should absolutely take a little bit off the table. It’s had an incredible run, a parabolic move. We know that we’re gonna hear from Nvidia that’s gonna knock down or take it up.”

Super Micro Computer (NASDAQ:SMCI) specializes in the design and production of cutting-edge server and storage solutions. Cramer was wary of the company due to its accounting irregularities and at the beginning of February said:

“You know, as you were talking, I started getting very interested. I said, oh, down 75% from its high, that could be very good. Maybe it’s a good company, but you just named a company that had accounting irregularities and accounting irregularities, in my book, always equal one thing, sell, sell, sell (buzzer sound), and always will. And that’s what you have to do with that stock.”

8. FTAI Aviation Ltd. (NASDAQ:FTAI)

Number of Hedge Fund Holders: 54

A caller asked Cramer if it was too late to get into FTAI Aviation Ltd. (NASDAQ:FTAI) and this is what he had to say:

“No, no. As a matter of fact, I’ve gotta tell you anything, anything aero, I’m gonna, I’m gonna be in favor of at this point and you’ve got a good one. I think you just hold onto it, even though, I mean, it just got clocked today. I mean that, but it was just part of the whole momentum trade. I think I like it.”

FTAI Aviation (NASDAQ:FTAI) focuses on owning and acquiring aviation and offshore energy assets to facilitate global transportation services. Over the past year, FTAI stock rose more than 128%. Additionally, nearly a month ago, Cramer was similarly bullish on the company as he stated, “Aircraft leasing’s a terrific business. I would hold onto that. It’s the opposite of, say the tanker business, which everybody wants to be in.”

7. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 55

Discussing Devon Energy Corporation (NYSE:DVN) during the episode, Cramer said:

“Devon has run too much, I gotta tell you. I watched it go up. We saw the quarter, it’s terrific. We got Coterra on Monday. That’s great. And if EQT comes down, I like that too better than Devon. Devon is not my stock of choice at this time.”

Devon (NYSE:DVN) is an independent energy company focused on the exploration, development, and production of oil, natural gas, and natural gas liquids throughout the U.S. In December 2024, Cramer expressed uncertainty about the company as he said:

“I don’t know, Rick Muncrief just left it. He built the company. The stock is at its 52-week low, it’s at $33. People expect oil to go down 10 bucks. We heard it from President-elect Trump yesterday. I say to start buying some and I almost put it in the bullpen today for my Charitable Trust in preparation for next Wednesday’s meeting. I’m holding off for now because oil is so weak.”

6. The Trade Desk, Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 63

Cramer highlighted The Trade Desk, Inc.’s (NASDAQ:TTD) lack of performance over the past few months but mentioned that he liked the company.

“Okay, yeah… I didn’t like the quarter. Why didn’t I like the quarter? Because Jeff told me that he was, that’s, I’m sorry, Jeff Green, the CEO, in the conference call, he said, look, he’s disappointed in himself and it wasn’t clear how much things have really changed, and whether things are going to get better after one quarter. I think we now have to wait another quarter… I want to see the next quarter. I don’t like to buy after the first big quarter. Maybe there’s a second because it sure didn’t seem like the quarter went out very well and you know, I like the company.”

Trade Desk (NASDAQ:TTD) offers a self-service cloud platform for managing and optimizing digital advertising campaigns across multiple formats and channels, providing data and additional services to improve ad performance.

5. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 94

PayPal Holdings, Inc. (NASDAQ:PYPL) operates an online payment platform that enables transactions for individuals and businesses alike. A caller asked if the company was on the way to recovery and here’s what Cramer had to say:

“Very important. First, that quarter was not what I thought it would [be] and certainly was not up to snuff given how much the stock ran. But second, more important, they’ve got an analyst meeting and they’re gonna straight, they’re gonna give you a five-year plan. When I have a company that, that has a five-year plan, I can measure it.

I don’t care about a quarter plan, that means nothing to me. I think the new CEO runs PayPal as a transparent open guy, he’s doing a good job. Let’s see what the five-year says and then we’ll make a decision. I’ve talked to Jeff Marks about that maybe PayPal should be the FinTech we own.”

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

A caller asked Cramer if Tesla, Inc. (NASDAQ:TSLA) is a falling knife or if SpaceX’s rocket is ready to take off. Here’s what Mad Money’s host had to say:

“It is neither. Tesla is a fantastic tech company. We know there are people who are beginning to say, wait a second, I see Musk doing a lot of things. Maybe he’s not focused on, on Tesla. Here’s what he’s focused on: making money in all his ventures and then saving money. When it comes to the government, I have no problem with what he’s doing

I would say this though, EVs right now aren’t selling well around the world. It is, in the end, short-term, a car company, longer-term, a tech company. Put a small position on then see if it comes down. No more than that.”

Tesla (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles and energy solutions, offering a range of services including vehicle sales, financing, and energy storage products, along with solar energy generation systems and related services to various customers. Cramer has been backing the company for quite some time now and a few weeks ago, he said:

“Alright, then there’s Tesla. Now I think Elon Musk, get this, I think he could sell tickets to this conference call. He could command a thousand dollars, easy. The last time Tesla reported, missed numbers badly and then it proceeded to have one of the biggest runs ever. Just soared right when it reported that number, and I’ve gotta tell you, I figured it out. Actually, Morgan Stanley’s, Adam Jonas figured it out for me. He calls Tesla, after that quarter, an AI ETF. People want an IETF so they buy the stock no matter what, especially if it’s down the next day. I want you to own Tesla. Just own it.”

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Cramer was bullish on Broadcom Inc. (NASDAQ:AVGO) and suggested waiting for a pullback before buying more.

“I like Broadcom so much. I’ve gotta tell you, I think it is just, it is just terrific and I’d like at the pull back to be able to buy more. That’s my approach.”

Broadcom (NASDAQ:AVGO) is focused on the design, development, and production of semiconductor devices, boasting a strong track record in semiconductor design. Aristotle Atlantic Partners, LLC stated the following regarding the company in its Q4 2024 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as the company’s third quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, which only includes contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) was mentioned during the episode and here’s what Cramer had to say about it:

“The fact is the stock is up huge still. Now we say own it, don’t trade it but we had to take a little bit off the top because we didn’t wanna be the Nvidia fund, but you need to know this, when the stock is at this big a move, no matter what they say when they report next week, it may not be enough. So there are people who are taking profits now ahead of when it reports so they can buy stock back if they want to or they just say, you know what? We’ve made so much money… in this company that we’re not gonna make anymore. I personally feel that it’s a great long-term investment and we’ve owned it for long term. We’re gonna continue to own it.”

NVIDIA (NASDAQ:NVDA), recognized for its innovations in graphics, computing, and networking technologies, is experiencing substantial growth with its GPUs and the CUDA software platform, which are crucial components of AI infrastructure. The company stock went up more than 69% over the past year.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

A club member asked about the catalysts of Microsoft Corporation (NASDAQ:MSFT) and Cramer replied:

“Alright, there’s two catalysts. One is that I think they’re gonna have a monster good quarter because all they need to do is take a little lift… in Azure, which is their cloud play, but the others I know and this shouldn’t, but they’re talking a lot of quantum and there are a lot of people who feel that they may be the reserve for quantum.

Even like the defense department’s quantum, let’s say, offering. I don’t buy that… that’s way too speculative. But I do think the numbers could be a, the estimates could be a little low and that would be the catalyst. That’s why we hold onto it.”

Microsoft (NASDAQ:MSFT) develops software, services, devices, and solutions, including tools for productivity, cloud services, enterprise applications, and gaming, alongside consumer and business offerings.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.