Jim Cramer Talked About These 16 Stocks and Market Froth

1. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders: 50

Novo Nordisk A/S (NYSE:NVO) is one of the stocks Jim Cramer talked about, along with market froth. During the episode, a caller asked if the stock is a buy, hold, or sell, and Cramer replied:

No, I would hold it. I met with the CEO last week. I kind of, I liked him a lot. Now, I met with Dave Ricks from Lilly, and you know, he’s my favorite, but I’m not going to go against owning some Novo. I think they’re making a turn here. I think that head start they have in the pill is very good.

Novo Nordisk A/S (NYSE:NVO) manufactures pharmaceuticals for chronic conditions, including diabetes, obesity, and rare blood or endocrine disorders. The company also produces some medical devices. Fundsmith stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its fourth quarter 2025 investor letter:

Novo Nordisk A/S (NYSE:NVO) managed to reaffirm my belief that you should never say ‘Things can’t get any worse’. The company has parlayed a market leading position in what is probably the most exciting drug development for about three decades into a secondary position and has failed to prevent illegal generic competition in its core US market.

One of our mantras has been that we should always invest in businesses which could be run by an idiot so that performance is not heavily reliant upon management. We have been made painfully aware that the range of businesses which can be run by an idiot is much more limited than we thought and hereafter we will aim to be more aware of the impact that poor management can have. Our experience also suggests that when we encounter poor management, engagement to change it is less effective than selling the shares. Meanwhile Novo Nordisk has appointed a new CEO and made wholesale board changes and the present rating (a PE of 13) appears to us to be expecting very little. If we did not already own it I suspect we would contemplate buying it as a good business which has been depressed by a ‘glitch’, albeit a rather large glitch.

While we acknowledge the potential of Novo Nordisk A/S (NYSE:NVO) 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 NVO and that has 100x upside potential, check out our report about this cheapest AI stock.

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