On Thursday’s episode of Mad Money, host Jim Cramer addressed the growing tension between wage inflation and the recent wave of layoffs.
“Even though today’s Producer Price Index number was way too high, wage inflation’s the real battleground, and I think the battle is being won by the machines… For many CEOs, agentics is a code word for we can do it without humans because humans are costly, they get sick, they need healthcare, and then they quit.”
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Cramer said that companies are deliberately slowing down hiring, not because of a lack of demand, but because they are seeking ways to cut labor costs. He noted that alternatives are becoming increasingly attractive because they are cheaper and more efficient to implement than managing a human workforce.
Cramer emphasized that what truly matters for inflation moving forward is the direction of wages, not fuel or shipping rates. He believes the downward pressure on wages is where the most significant and lasting changes are happening. He also said that large-scale layoffs are imminent at a number of banks.
“I understand why everyone’s worried about inflation when the tariffs will likely force many companies to raise prices, but I think this is a moment of powerful wage deflation, and that’s what will ultimately matter. It’s not obvious yet. It soon will be. Don’t wait for the figures, just accept that wage deflation’s a given, and it won’t be long before we all see the shocking results.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on August 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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 15 Stocks
15. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer talked about. Cramer mentioned that the company’s balance sheet is not in good condition. He commented:
“The anecdotal side suggests that there have been some layoffs, 25,000 at Intel, 15,000 at Microsoft, but nothing else that comes close. Now Intel’s problems are well documented, although they actually may be able to solve them if the government does take a stake in the company. That would be terrific. You know why? Because its balance sheet is really in tatters. Intel needs the money; the government has it. It would be fabulous.”
Intel Corporation (NASDAQ:INTC) develops and delivers semiconductor products, including CPUs, GPUs, FPGAs, and system-on-chip solutions, along with memory, networking, and edge computing technologies. When a caller asked about the stock in a July episode, Cramer replied:
“Okay, you know, this is an absolutely great question because, you know, I used to be an Intel hawk, and then I told everyone to sell it for about 40 points. It was a great call by me. This Lip-Bu Tan, who took over, he’s monster good, but I think even he is going to have to take another six months to a year before he can turn it around. If you are willing to wait that long, I bless it. But that’s not what I think you should do.”
14. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 17
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the stocks Jim Cramer talked about. A caller asked for Cramer’s opinion on the company, and he replied:
“Well, that’s a drone company, and drone companies are very, look, I like AVAV, but Kratos, that one’s a good company too, but I’m going to stick with my AVAV.”
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technologies and systems for defense, national security, and commercial applications. The company’s products include satellite ground systems, unmanned aerial drones, hypersonic vehicles, propulsion systems, electronic warfare solutions, and training platforms. Baron Discovery Fund stated the following regarding Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) in its second quarter 2025 investor letter:
“Leading defense technology provider Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) contributed to performance during the quarter amid growing momentum across nearly the entire business. We believe Kratos is well positioned for accelerated multi-year growth, as prior investments in high-growth areas of defense—such as hypersonic technology, drone engines, small missile engines, space, microwave electronics, and unmanned systems—are translating into larger contract awards. Demand is being driven by increased funding from the U.S. Department of Defense and other global militaries. In our view, the current operating environment has never been better, and few companies are as well equipped as Kratos to deliver the advanced solutions required for modern warfare.”
