Jim Cramer, the host of Mad Money, told viewers on Tuesday that it may be time to lock in gains from stocks that have gone parabolic.
Tonight, we are going to talk about something I despise. We’re going to talk about froth, the process by which we overpay for things that might not be worth as much as we think, maybe much less than we think… Let’s start with a simple supposition. While many long-term winners have struggled since the beginning of the new year, the speculative stocks and momentum stocks have really caught fire. They’re different, very different. The speculative names are at the heart of the froth… But there’s been a huge amount of money made in these stocks over the past few weeks, and that’s one part of the problem.
READ ALSO Jim Cramer Recently Looked at These 25 Stocks and 14 Stocks on Jim Cramer’s Game Plan for This Week
Cramer went on to say that many of these stocks represent companies with no earnings and minimal sales. He acknowledged that speculation can be a legitimate way to make money, but he emphasized that the main word is “make.” He explained that profits are not real until investors actually sell and lock in gains. He emphasized that he was not calling for selling everything, but instead encouraged investors to move a meaningful portion of stock holdings into cash. He said that by doing that, investors are effectively playing with what he calls the house’s money rather than risking unrealized gains.
The bottom line: There are better non-tech stocks to own. In this frothy market, it’s time to diversify. Remember, you want to make the most amount of money with the least amount of risk. That’s what this business is about, and right now, that’s simply not tech. Make these changes, and I think you’ll be glad you did. No panic, just be smarter.
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 January 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, sourced from Insider Monkey’s database of 978 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Talked About These 16 Stocks and Market Froth
16. Procore Technologies, Inc. (NYSE:PCOR)
Number of Hedge Fund Holders: 45
Procore Technologies, Inc. (NYSE:PCOR) is one of the stocks Jim Cramer talked about, along with market froth. A caller sought Cramer’s opinion regarding a long-term hold in the stock. In response, he said:
Alright, now this is an enterprise software company, and we are seeing tremendous pressure on these by people who think they can go into Claude, which is owned by Anthropic, and create the same software product that they might be paying a fortune for. I don’t know if Procore can be easily, let’s say, I don’t know, copied, let’s say copied, but I do know that that’s the problem with these stocks, and they’re not going to let up. You have to be careful, Procore.
Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based platform that enables builders and owners to manage project planning, site safety, and financial tracking. Antipodes Partners stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its third quarter 2025 investor letter:
We trimmed our longstanding position in Microsoft against strength and initiated a position on Procore Technologies, Inc. (NYSE:PCOR), a leading US construction management software used by the largest general contractors, project owners and specialty trades globally. Concerns including competition and soft construction demand presented the opportunity to establish a position. Procore continues to see new wins and an expansion in existing contracts given it is over-indexed to non-residential segments such as datacentres, manufacturing and healthcare, despite the macro backdrop. Our analysis suggests Procore can see revenue growth re-accelerate towards high-teens as overall construction demand improves, broader industry digitisation drives technology adoption and its go-to-market ramps to secure greater share in new geographies and segments.
15. Allegion plc (NYSE:ALLE)
Number of Hedge Fund Holders: 31
Allegion plc (NYSE:ALLE) is one of the stocks Jim Cramer talked about, along with market froth. During the lightning round, a caller asked about Cramer’s thoughts on the stock, and he replied:
That’s a good company. It’s an electronic security company, and it’s a good company. It’s not that expensive. It’s the kind of company that you can buy into weakness and not feel like you’re going to get your head blown off, which is how I feel about a lot of these stocks that are up between 50% and 80% so far this year already.
Allegion plc (NYSE:ALLE) provides physical and digital security solutions, ranging from locks and exit devices to integrated access control software. It sells its products and maintenance services to residential and commercial customers.
On January 7, Barclays reduced its price target on the company’s stock to $180, down from $187, while maintaining an Equal Weight rating. The firm made the revision during a broader update to price targets within the multi-industry sector for the fourth quarter. Barclays noted that the demand appears to be strengthening, especially due to a rise in orders related to artificial intelligence.
14. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL) is one of the stocks Jim Cramer talked about, along with market froth. Inquiring about the stock, a caller noted that it has been “stuck in the mud” for more than a decade. Here’s what Cramer had to say:
Shell is just an okay oil company and nothing more, and that’s the problem. And I don’t really care for the oils. At least they’re not speculative.
Shell plc (NYSE:SHEL) extracts and processes oil and natural gas to produce fuels, lubricants, and chemicals for industrial and transport sectors. In addition, it manages electric vehicle charging, generates power from renewable sources, and develops carbon capture and hydrogen solutions. On January 8, Piper Sandler raised the price target for the company’s stock to $92, up from $90, and maintained an Overweight rating.
The firm noted that the 2026 outlook for the sector mirrors the previous year, as bearish crude expectations could potentially limit market outperformance. On the other hand, the firm thinks the refining side will look better than it did last year.
13. Firefly Aerospace Inc. (NASDAQ:FLY)
Number of Hedge Fund Holders: 22
Firefly Aerospace Inc. (NASDAQ:FLY) is one of the stocks Jim Cramer talked about, along with market froth. When a caller made a note of their curiosity regarding the stock, Cramer remarked:
Okay, space and defense continues to attract a lot of interest. I now am saying we’ve gotta buy companies that make some, that have some degree of earnings right now, because I don’t want too speculative, and I think that that one is a little too speculative for me.
Firefly Aerospace Inc. (NASDAQ:FLY) develops space and defense technologies used for launching, moving, and operating assets in orbit. During the CNBC’s Squawk on the Street episode aired on August 7, 2025, Cramer showed optimism around the company’s IPO, as he commented:
Well we need these. We don’t have anything connected with rocketry goes higher, so could this double? Yeah, easy. I do think that, I’m not being facetious. . .this is a very exciting. . .Figma couldn’t put a man on Pennsylvania. This thing is David is so hot, you need to have hundreds of millions of shares offered in order to keep this thing down.
12. KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 61
KLA Corporation (NASDAQ:KLAC) is one of the stocks Jim Cramer talked about, along with market froth. Answering a caller’s query about the stock during the lightning round, Cramer commented:
Okay, KLA is an incredibly well-run company whose stock is up gigantically. They make the semiconductor capital equipment, you need that, memory. I think that if you wanted to start a position, get this, I am blessing this, okay? The stock was down huge today. I think if you wanted to buy 100 shares, you can buy 15 to 20 shares tomorrow. I normally would not say that, except for this one was down huge. You’re not buying it at the top. That’s what matters to me.
KLA Corporation (NASDAQ:KLAC) develops tools and software that help chipmakers inspect, measure, and control semiconductor manufacturing to improve quality and yields. During the January 5 episode, Cramer highlighted the stock’s tremendous rally, as he remarked:
Next, there’s KLA Corp. There’s a, it’s another semiconductor equipment company just like Lam Research, up 93% last year. This one’s all about the data center’s voracious demand for memory chips. Well, at this point, frankly, in the cycle, you have to expect companies like KLA to keep racking up big orders because there’s simply not enough production capacity to make all the chips we need.
11. Pan American Silver Corp. (NYSE:PAAS)
Number of Hedge Fund Holders: 38
Pan American Silver Corp. (NYSE:PAAS) is one of the stocks Jim Cramer talked about, along with market froth. A caller mentioned that they are interested in starting a position in a silver stock and inquired about PAAS. In response, Cramer said:
Well, you did hit the best. Pan American Silver is the best silver mining company. However, to say to start a position now after the stock is up so gigantically is worrisome. Let’s at least wait for a day when it’s not up three or four because I don’t think you’re getting a great price if you come in today on Pan American Silver, but you do have the best one.
Pan American Silver Corp. (NYSE:PAAS) focuses on the extraction of silver and gold, as well as base metals such as zinc, lead, and copper. The company manages the full lifecycle of mining operations. A caller asked about the stock during the episode aired on May 21, 2025, and Cramer responded:
Well, first, I want to give the same shout-out because that business… is dynamite. I happen to like silver very much, and… Pan American silver is the best silver mine. So I think you’ve got something going there. I’m with you…
It is worth noting that since the above comment was aired, Pan American Silver Corp.’s (NYSE:PAAS) stock is up by over 140%.
10. ImmunityBio, Inc. (NASDAQ:IBRX)
Number of Hedge Fund Holders: 18
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the stocks Jim Cramer talked about, along with market froth. When a caller asked about the stock during the lightning round, Cramer said:
Okay, now that… see what happens, I think is you already had that. That moved gigantically. It’s had a giant run off this FDA meeting, and I really think that you have to take profits in some of that, not all of it, but some of it, because it’s up so big.
ImmunityBio, Inc. (NASDAQ:IBRX) develops therapies designed to strengthen the immune system against infectious diseases and several cancers. During the May 19, 2025, episode, Cramer was asked about the stock by a caller, and he replied:
IBRX is not a great stock, ImmunityBio. I’ve looked at it for a very, very long time. I don’t like the fact that they are, they’ve been losing money forever. I am not in their camp.
It is important to note that since the above comment was aired, the company’s stock has gained over 130%. Furthermore, the stock is up over 220% year-to-date.
9. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 102
Vertiv Holdings Co (NYSE:VRT) is one of the stocks Jim Cramer talked about, along with market froth. A caller inquired if the company would be impacted as a result of NVIDIA’s newer chips, and Cramer replied:
No, my understanding is you’re still going to need Vertiv. You’re still going to need Vertiv, which has the Liebert… system that I don’t think they’re going to stay away… Vertiv is going to still be used… and we also think that Eaton’s going to be used. These are all part of this process of getting electricity… and cooling them. So I’m not backing away from any of those. However, understand… this market does not like the data center at this very moment, and all those I just mentioned are data center plays.
Vertiv Holdings Co (NYSE: VRT) designs, manufactures, and manages power and cooling systems for data centers and digital networks. The company also provides services to keep these systems running smoothly and efficiently. A caller asked about the stock during the December 1, 2025, episode, and Cramer responded:
Well, I think Vertiv actually opened down today because people felt that they were somehow involved with what happened with CyrusOne. All I know about Vertiv is their order book is really full. You need Vertiv. That’s Liebert. That’s the best cooling system. Everybody knows I first started buying Liebert in the 1980s, and that was the highest, best form of air conditioning. That’s what Vertiv is. That’s why everybody loves it. And by the way, I think it’s a buy right here.
8. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 51
Dell Technologies Inc. (NYSE:DELL) is one of the stocks Jim Cramer talked about, along with market froth. Noting that the stock is down more than 30% since its high nearly three months ago, a club member sought Cramer’s thoughts on the stock. He stated:
Okay, I like Dell very much. Here’s the problem. They are a big buyer of storage. They’re a buyer of Micron. They’re a buyer of these disk drives. They’re buyer of all the companies that are in tight supply, and those companies keep raising prices to Dell, which means Dell has to eat it, and their margins are going to get hurt. So you have to wait till it reports, or you have to wait until we finally see some sort of peak in these different lower-end storage companies, or like a Micron.
Dell Technologies Inc. (NYSE:DELL) provides storage systems, servers, networking gear, and consulting services, as well as laptops, desktops, workstations, and accessories. During the episode aired on December 19, 2025, a caller highlighted that the stock had been declining since they started a position in it and asked for Cramer’s advice. The Mad Money host replied:
Alright, you’re right to worry because a lot of people are concerned that the, that their parts themselves have gone up a lot, and their raw costs are going down. I think Dell can fall from here. I think it can fall, but not below much, maybe 115, 110. And you should buy it because Michael Dell will be in there buying with you, and he is a very smart fella, and he’s not going to let those component costs bother the bottom line too much. The stock is still up for the year.
7. Revolution Medicines, Inc. (NASDAQ:RVMD)
Number of Hedge Fund Holders: 71
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the stocks Jim Cramer talked about, along with market froth. Cramer highlighted that there is a takeover interest in the company, as he commented:
Of the 32 stocks that made our froth list, seven of them were biotechs, and four of them have more than doubled. Some of these moves are easy to understand. There’s Revolution Medicines. It’s up nearly 46% after reportedly drawing takeover interest from… Merck… That could be a winner. Others have had strong clinical trial results. I like that. But again, biotech is not a good leadership group. This is a boom and bust business where gains can disappear just as quickly as they materialize. At that JPMorgan Healthcare conference I went to… I got a feeling that all sorts of biotechs were raising money here and rallying to pretty incredible valuations, often based on nothing more than a press release. That’s froth.
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage oncology company developing targeted therapies for RAS-driven cancers. RAS refers to a family of genes that produce proteins controlling cell growth and division.
6. Galaxy Digital (NASDAQ:GLXY)
Number of Hedge Fund Holders: 32
Galaxy Digital (NASDAQ:GLXY) is one of the stocks Jim Cramer talked about, along with market froth. During the episode, Cramer was bearish toward the stock, as he said:
Hey, speaking of crypto, a couple of other crypto-related names have had big pops to begin with in 2026, even as the broader crypto market still seems stuck, if anything, really, negative today. Galaxy Digital and Figure Technologies, they’re up…. Here’s what you do when you hear those and see those and own those, [sell, sell, sell].
Galaxy Digital (NASDAQ:GLXY) provides a platform for digital asset trading, staking, and asset management services. The company also operates data center infrastructure. Cramer mentioned the company during the June 10, 2025, episode and remarked:
But what they’re really interested in are stocks that don’t get coverage, even if they trade millions and millions of shares every day. Look at the volumes of these things. We all ought to be talking about them constantly, stocks like… Galaxy Digital… [It] is run by Mike Novogratz. Here’s a company that specializes in all this stuff that young investors can’t get enough of, digital assets, cryptocurrencies, blockchains. Michael pops up on Squawk Box. He’s incredibly articulate, as you’d expect from a former partner of both Goldman Sachs and Fortress Investment Group. He’s basically a good guy.
When I think of this cohort, I wonder why we don’t devote hours to this stuff because there’s a hunger for it like no other I’ve ever seen. Any stock that trades 10 million shares a day is worth covering, but there’s no analyst covering them, and nobody knows anything about them. Wall Street ignores them entirely. Now that the IPO window’s open again, I believe we’ll see dozens of these companies come public, and they’ll continue to go uncovered because they have no pedigree and no sponsorship.
5. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 38
Applied Digital Corporation (NASDAQ:APLD) is one of the stocks Jim Cramer talked about, along with market froth. Cramer mentioned the stock during the episode and said:
Next, there’s a whole new class of companies that’s caught fire over the past year, cryptocurrency miners that are converting their racks full of servers into data centers for AI. Now, this all started with CoreWeave. I don’t know if you saw Michael Intrator… CoreWeave’s successful IPO last March really caught everybody by surprise. Then, we saw Nebius join the fray. Those stocks were up 33% and 19%, respectively, by the way, just in 2026. But some of the even newer converted crypto miners are up more than 40%, like IREN, Applied Digital, Riot Platforms. These moves are insane. I need you to take profits before they’re cut in half… We saw the same carnage in the crypto miners turned AI data center plays. IREN, Applied Digital, Riot Platforms, each fell somewhere between 50% to 57% from peak to trough. That is dangerous.
Applied Digital Corporation (NASDAQ:APLD) designs, builds, and operates data centers that support high-performance computing and AI workloads.
4. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 37
AeroVironment, Inc. (NASDAQ:AVAV) is one of the stocks Jim Cramer talked about, along with market froth. Cramer highlighted that he likes the stock, as he stated:
Then there are the companies that make drones for the defense department, like Kratos Defense & Security, AVAV… the former AeroVironment, bear with me on this one, smaller player Red Cat, all three up between 37% and 82% for the year. Now, I actually like AVAV… along with Kratos, actually profitable, but they’re both incredibly expensive at these levels. Plus, there hasn’t been any real catalysts for the drone companies aside from the president’s sabre-rattling.
AeroVironment, Inc. (NASDAQ:AVAV) develops robotic and autonomous systems, including uncrewed aircraft, counter-UAS tools, precision-strike solutions, advanced AI, and autonomy. In addition, the company provides space, cyber, communications, and intelligence systems used in defense and commercial applications. A caller inquired about the stock during the episode aired on January 7, and Cramer replied:
But I got to tell you, you got a lucky break. After the close, we heard from President Trump, said he wants to make the defense budget go up dramatically, like $500 billion. And I got to tell you something, the stock, which went out at $318 at 4:00, it’s trading right now at $335. And there’s nothing funky about that. That’s a terrific company. We have them all the time. All I can say is congratulations. Think about how much money… [the caller] just made.
3. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) is one of the stocks Jim Cramer talked about, along with market froth. Cramer noted why stocks like BE are “booming,” as he commented:
Let’s start with the alternative energy plays, which are booming because most of the data centers want clean energy. That’s why Bloom Energy is up a quick 75% year-to-date. You heard me, 75% after nearly quadrupling in 2025. There is a catalyst here, although it’s not necessarily a great one at this point. American Electric Power, AEP, the big utility, confirmed in a regulatory filing that it’s buying fuel cells from Bloom. Though we actually already knew that. This company’s also now solidly profitable and its earnings should grow at 150% clip this year. That’s good. But the stock ain’t exactly cheap, trading at 150 times this year’s earnings estimates. That’s dangerous to me… Stocks that have really caught fire again in 2026 because those are the things that got really hammered. I mentioned some of these. Bloom Energy plunged 49% from its November high to its mid-December low. Now, Bloom is back above that November high, but this darn thing was still cut in half in a matter of weeks.
Bloom Energy Corporation (NYSE:BE) develops and sells solid-oxide fuel cell systems that convert natural gas, biogas, or hydrogen into electricity without combustion. The company also provides electrolyzers for hydrogen production.
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 116
Spotify Technology S.A. (NYSE:SPOT) is one of the stocks Jim Cramer talked about, along with market froth. Highlighting that the company faces competition from Apple and YouTube, a caller inquired if the stock is a buy, sell, or hold. In response, Cramer said:
I have been watching the stock just shed points and shed points and shed points as the Street turns on it because it sells at a very high price-to-earnings multiple. People no longer like the high price-to-earnings multiple stocks right now. We have to obey that and watch it come in and own it for the long term or sell it and come back later, which may be the way that I would approach Spotify.
Spotify Technology S.A. (NYSE:SPOT) provides audio streaming services. It lets users listen to music and podcasts either through ad-free subscriptions or free, ad-supported access. TCW Concentrated Large Cap Growth Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its third quarter 2025 investor letter:
Spotify Technology S.A. (NYSE:SPOT) (SPOT; Communication Services; 1.21%**) – Headquartered in Sweden, Spotify is the leading audio streaming subscription service with a community of approximately 700 million monthly active users, and over 275 million paying subscribers. The company controls ~1/3 of the global music streaming market, providing SPOT with scale to negotiate with music labels during pricing negotiations. The company manages its business in two segments: premium (~90% of revenues) and ad-supported (~10% of revenues). After not raising prices for over a decade, the company has recently begun to take price with limited impact to customer churn. We believe SPOT has numerous levers to pull to accelerate growth, including adding new users, converting ad-supported users to premium subscribers, and price increases. We are attracted to the company’s scale in a secularly growing market and believe the current share price does not adequately reflect the longer-term cash flow generation potential of the business.
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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
