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Jim Cramer Thinks You Should Buy Nextracker Inc. (NASDAQ:NXT) on the Dip

We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks in JulySince Nextracker Inc. (NASDAQ:NXT) ranks 9th on the list, it deserves a deeper look.

Jim Cramer in a fresh episode of “Mad Money” on CNBC said that while investing isn’t easy, it’s made even more difficult by “authentic Wall Street gibberish” and “arcane technology.” Cramer said that there’s an “entire industry” in Wall Street wanting people to think that investing is hard and “ordinary people” cannot do it on their own. Cramer said that many people in the financial industry are just “after your fees” and they aren’t interested in making money from original investing. Cramer said that hedge fund managers and mutual funds make investing look inaccessible and impenetrable.

Cramer said that he’s “pulling back the curtain” and emphasized that investing isn’t “rocket science” or “brain surgery” and you don’t need to go to a business school to understand it. Cramer pitched himself as a “coach” or a “translator” who can explain the meaning of complex financial terms to ordinary people.

“You can comprehend all the mystical-sounding vocabulary we throw around here as long as you have a translator, a coach like me, who can explain what the darn words mean.”

For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Fund Investors:47

Jim Cramer recently said there is a great buying opportunity on the dip around Nextracker Inc. (NASDAQ:NXT).

“Their technology lets you increase your yield from solar panels. The stock is down. It’s a great opportunity.”

Wall Street is also growing bullish on Nextracker Inc. (NASDAQ:NXT). Mizuho earlier this month gave a $59 price target on the stock, saying Nextracker Inc. (NASDAQ:NXT) is positioned to benefit from demand growth of solar power driven by data center and AI.

Nextracker Inc. (NASDAQ:NXT) is also seeing a boost in worldwide demand. During the fiscal fourth quarter, the company saw a 90% YoY increase in international revenue as it expands into markets such as India, Australia, Europe and Brazil. During the quarter, Nextracker Inc. (NASDAQ:NXT) reported an increase in full-year gross margins to 28%, thanks to global supply chain optimization which allowed the company to lower logistics expense. As of the end of the fiscal fourth quarter, Nextracker Inc. (NASDAQ:NXT) had $474 million in total cash, exceeding its total debt of $150 million by more than threefold. During an earnings call, Nextracker Inc. (NASDAQ:NXT) disclosed that its global supply chain capacity had expanded to over 50 gigawatts annually, with U.S. capacity surpassing 30 gigawatts per year.

Nextracker Inc. (NASDAQ:NXT) stands to benefit from the secular tailwinds in the industry. According to data from the U.S. Energy Information Administration, solar is expected to grow at a CAGR of 26% over the next five years.

Overall, Nextracker Inc. (NASDAQ:NXT) ranks 9th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. While we acknowledge the potential of Nextracker Inc. (NASDAQ:NXT), 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 Nextracker Inc. (NASDAQ:NXT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We alerted our subscribers, and BTI returned 90% in just 16 months.

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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