Jim Cramer, the host of Mad Money, said on Tuesday that if Oracle begins to show spending restraint, it could cool the massive artificial intelligence outlays coming from other hyperscalers.
“Wall Street has concluded that companies involved in artificial intelligence are paying too much money to build out the data centers. The hundreds of billions of dollars that they’re all spending has turned off money managers and driven them toward other tech companies or even other growth companies from different sectors, including industrials, drugs, anything that has nothing to do with data. In fact, the data center is now a scarlet letter, and Wall Street loves industrials that have zero contact with these money pits.”
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Cramer added that Oracle and OpenAI stand out as renegades in this environment, and noted that the show of force from both groups is unnecessary. He added that if Oracle shows discipline, every other hyperscaler could slow spending, which will lead to a more reasonable pace overall. He said that any company assuming the entire buildout is already “baked into their numbers right now is “overestimating” itself.
“But here’s the bottom line: Listen to me. I’m not saying it won’t be rocky. I am saying that it will end better for OpenAI and Oracle than it did for Sonny Corleone. And the truce that follows will allow everyone to skate in their own lanes, cut their CapEx budgets, make a huge amount of money, and then see their stocks really fly. Meta, Microsoft to the moon. But things could get uglier first without that five-family truce that must be called by Oracle in conjunction with the perpetually Sonny OpenAI, or we’re still going to go lower.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 16. 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, which was taken 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 8 Stocks Recently
8. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer talked about recently. Cramer mentioned the company while discussing the talks of a bubble in the data center business, as he remarked:
“Now, why is this migration so important? Because you have all these people saying that a bubble may be developing in the data center and anything connected to it. But anyone with two eyes can see that the bubble burst two months ago for all but Google. And that’s because Google won.”
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play. Cramer mentioned the stock during the December 15 episode and said:
“Almost every single tech company I follow has a monstrous set of rivals spending tens of billions of dollars to dominate the particular industry. Now, in one case, that spending can be worth it. Google spent enough to keep the comers out of the search category. It’s been allowed to write a check to Apple to make it the default search. That cost them $20 billion per year, and it’s money well spent now that the contract has been blessed by a federal judge who must have lost his mind. I now expect Google will also pay Apple to make Gemini their default AI chatbot. Ooh, that judge will like it even more. At that point, even OpenAI playing with… other people’s money may not be able to compete… Alphabet’s the only one that seems to be winning.I don’t know. I mean, we need more winners, but it’s just Alphabet.”
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer talked about recently. Cramer mentioned the stock during the episode and said:
“These groups were the salvation of this market when the year of magical investing ended, and the super speculative stocks started coming back to earth, they’re still doing it, followed by the data center plays. These were the groups that saved you. We don’t talk about this migration much, but all you need to know is just to look at the stocks of Merck and Johnson & Johnson since the data center collapse, and you’ll know exactly what I mean. I could easily argue that nothing good has happened to these companies that can explain their last 10% upside, except that Meta, Microsoft, and NVIDIA have all peaked out, perhaps for now, perhaps for a long time. And the money rotated to other growth areas.”
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases. In addition, the company provides surgical systems, orthopaedic solutions, cardiovascular devices, and vision care products.
