Jim Cramer Took A Side On Biggest AI Debate & Discussed These 13 Stocks

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In a recent tweet, Jim Cramer discussed one of the hottest topics in the AI market. This topic is the question of custom AI chips and whether they are able to deliver just as well as NVIDIA’s pricey high-end chips. While some quarters believe that the cost benefits offered by the custom chips are superior, others hold the opinion that NVIDIA’s chips are still the best when it comes to total cost of ownership. Cramer’s tweet made it clear which side he’s on:

“It seems so easy to just go buy the Amazon or Alphabet GPU version but they are hard to get credit against and do not hold their value over the years like Nvidia’s do. Doesn’t matter tomorrow or the next day, does matter over the long haul. And i like AMZN & GOOGL”

Our Methodology

For this article, we compiled a list of stocks that Jim Cramer discussed during the episode of Squawk on the Street aired on May 20th and tweeted about. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2025, which was taken from Insider Monkey’s database of 1,000 hedge funds.

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13. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holdings in Q4 2025: 264

AI GPU giant NVIDIA Corporation (NASDAQ:NVDA) reported its earnings on the 20th. By afternoon on the 21st, the shares were down by 1.43%. Cramer is one of the firm’s biggest fans. Ahead of the earnings, TD Cowen discussed the firm as it raised the share price target to $275 from $235 and kept a Buy rating on the 15th. The coverage came as the financial firm previewed the semiconductor earnings cycle and pointed out that investors were focused on stocks poised to benefit from shortages. Cramer discussed NVIDIA Corporation (NASDAQ:NVDA) ahead of the earnings report and asserted that CEO Jensen Huang would have to set the record straight about the competition his firm was facing from custom AI chips:

“Yeah I’m not sure how much to rely on that because the narrative. . .reset by Jensen. And I think what he has to do is say that the total addressable market twice what people thought. And the thicket that he has to manage, Amazon and Alphabet. These are huge customers. They both on their conference call, do the, yeah NVIDIA’s important, we would never break up, but it’s our own chips, our own chips, our own chips. Andy Jassy, 50 billion dollar chip business. So what matters is, how much can he craft the story away from them, maybe using Anthropic, maybe using OpenAI, maybe using Meta, maybe using Elon. But David, you know that if he just goes in and doesn’t address the fact that these other guys are gunning for him, then I think [inaudible].

“. . .the fact is, Jensen is the best in the world, and if you bring yourself down, where you have to basically play defense, instead of offense, then I think people get confused. . .he’s gotta address the CPU issue, with Groq. And I think he can say, also, that people are misunderstanding the importance of these two hyperscalers. And that he can live without them. . .just has to say, listen, I love them, they’re great, but we’ve got so many people that want our chips. And the Vera Rubin’s sold out, next year. . .”

Following the earnings, the CNBC TV host discussed NVIDIA Corporation (NASDAQ:NVDA)’s share price and dividends:

“Only Nvidia can report that great a q and not do anything. People demand 76% gross margins Insane.. Let’s see what the call says

“Nvidia is going to have to start doing an Apple like dividend and buyback combo. I know it sounds “boring” but it worked for Apple and Nvidia will have a lot of cash on hand….”

12. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holdings in Q4 2025: 87

Off price retailer The TJX Companies, Inc. (NYSE:TJX)’s shares are up by 2% year-to-date and by 20% over the past year. The firm reported its earnings for the fiscal first quarter on the 20th. The results saw The TJX Companies, Inc. (NYSE:TJX) post $14.32 billion in revenue and $1.19 in per share earnings to beat analyst estimates of $14 billion and $1.02. The results also saw the retailer hike its fiscal year 2027 comparable sales growth forecast to 3% and 4% from an earlier 2% to ​3%. The TJX Companies, Inc. (NYSE:TJX)’s shares closed 5.7% higher on the 20th. Ahead of the earnings, UBS reiterated a $193 share price target and a Buy rating for the shares. As for Cramer, he tweeted about the stock and wondered whether it would be worth buying some. As The TJX Companies, Inc. (NYSE:TJX) reported its earnings, the CNBC TV host briefly discussed the firm:

“TJX great, Lowe’s not as bad as people think.”

Here is his earlier tweet about The TJX Companies, Inc. (NYSE:TJX):

“Maybe pick up some $TJX down 4% from high? Rarely get that kind of discount!”

11. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holdings in Q4 2025: 66

Lowe’s Companies, Inc. (NYSE:LOW) is one of the largest home improvement retailers in America. Its shares are down by 4.3% over the past year and by 11.9% year-to-date. Several analysts have discussed Lowe’s Companies, Inc. (NYSE:LOW)’s shares in May. For instance, Truist cut the share price target to $280 from $293 and kept a Buy rating on the stock on May 14th. The bank remarked that it had adjusted Lowe’s Companies, Inc. (NYSE:LOW)’s price target as part of its first-quarter preview for some retailers. Citi also discussed the share price target as it upgraded the rating to Buy from Neutral and reiterated a $285 share price target. The bank remarked that Lowe’s Companies, Inc. (NYSE:LOW) could benefit from the recent pullback in its share price and added that it expected the firm to surpass earnings estimates. The bank’s commentary proved insightful as the retailer beat its first quarter revenue and earnings estimates of $22.97 billion and $2.97 by posting $23.08 billion and $3.03. Cramer praised Lowe’s Companies, Inc. (NYSE:LOW) after the earnings:

“TJX great, Lowe’s not as bad as people think.

“I have to tell you that I thought that Marvin Ellison did a little better job than the stock indicates.”

10. Toll Brothers, Inc. (NYSE:TOL)

Number of Hedge Fund Holdings in Q4 2025: 46

Homebuilder Toll Brothers, Inc. (NYSE:TOL)’s shares are up by 29.7% over the past year and flat year-to-date. They closed a strong 9.8% higher on May 20th as the firm reported its fiscal second quarter earnings on May 19th. A month back, Truist had discussed Toll Brothers, Inc. (NYSE:TOL)’s stock on April 16th. It cut the share price target to $170 fro $190 and kept a Buy rating on the stock. As part of its coverage, the financial firm discussed the impact of the Iran war and inflation on the firm. Earlier during the month, Barclays had adjusted Toll Brothers, Inc. (NYSE:TOL)’s share price target to $115 from $116 and kept an Underweight rating on the stock. The bank’s coverage came ahead of the earnings cycle as it outlined that it preferred homebuilding firms with pricing power. Cramer discussed Toll Brothers, Inc. (NYSE:TOL)’s earnings and lamented that the CEO was retiring:

“Yeah I was glad, I mean Toll made it on all the numbers and the numbers are not the way it used to be. Where it’s up, up, up. But they did beat the numbers and that was terrific.

“Oh I love Doug,. . .this is unfortunately Doug is retiring. What a great man, did a great job.”

9. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holdings in Q4 2025: 86

Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor company whose chips are used in a variety of applications such as automotive, healthcare, and industrial. Its shares are up by 81% over the past year and by 40% year-to-date. Cantor Fitzgerald discussed the firm on May 13th as it raised the share price target to $510 from $400 and kept an Overweight rating on the stock. As part of its coverage, the financial firm outlined that the analog chip sector had experienced an uptick in the first quarter on the back of strong demand from the data center industry. Wells Fargo discussed Analog Devices, Inc. (NASDAQ:ADI) ahead of the second quarter earnings results. It raised the share price target to $470 from $410 and kept an Overweight rating on the stock. According to the bank, strength in the industrial and communications markets should help the firm. Cramer discussed Analog Devices, Inc. (NASDAQ:ADI) and its peer firm, Texas Instruments:

“ADI is, that’s, industrial. . . Texas Instruments and ADI are the ones that, internet of things. . .”

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holdings in Q4 2025: 78

Texas Instruments Incorporated (NASDAQ:TXN) makes and sells power management, connectivity, and other chips. Its shares are up by 60% over the past year and by 68% year-to-date. Truist discussed the firm on April 23rd as it raised the share price target to $278 from $225 and kept a Hold rating on the stock. The bank commented that Texas Instruments Incorporated (NASDAQ:TXN)’s fiscal first quarter results and the second quarter guidance were excellent. Truist added that the firm had benefited from demand from industrial users as well data centers and AI infrastructure. Cramer discussed Texas Instruments Incorporated (NASDAQ:TXN)’s exposure to the internet of things industry:

“ADI is, that’s, industrial. . . Texas Instruments and ADI are the ones that, internet of things. . .”

ClearBridge Large Cap Growth Strategy discussed Texas Instruments Incorporated (NASDAQ:TXN) in its Q1 2026 investor letter:

“We continue to be optimistic on trends in the semiconductor sector and added a new position during the quarter in Texas Instruments Incorporated (NASDAQ:TXN), a company focused on analog semiconductor devices and embedded processing. The company sells products with long life cycles to a diversified customer base and has a unique free cash flow story. While the company’s cash flow has been depressed by sluggish demand and elevated capex, we believe cash flow can inflect meaningfully as both of those trends reverse. We also view Texas Instruments as well positioned for an improving manufacturing outlook as 30%–40% of its customer base is in industrials.”

7. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holdings in Q4 2025: 91

Cramer frequently discusses productivity software firm Adobe Inc. (NASDAQ:ADBE) in his morning appearances. In 2025, the CNBC TV host pointed towards the firm’s struggles in the AI era and outlined that management had failed to convince investors about the merit of its strategy to compete with AI. Adobe Inc. (NASDAQ:ADBE)’s shares are down by 41% over the past year and 26.7% year-to-date. Another factor that Cramer has discussed about the firm recently is its use by design schools. In late April, he remarked that Adobe Inc. (NASDAQ:ADBE) could suffer if it loses design schools. In this appearance, he shared that he was researching this aspect:

“I was doing some work on Adobe, losing the schools. You know schools are really important, because you have to take a course on Adobe to be able to use Adobe. That stock’s been going up, I think that that’s had its move.

“The strength of Adobe is that every designer school requires it. But you need a course to be able to use the product. . .”

Oakmark Fund discussed Adobe Inc. (NASDAQ:ADBE) in its Q1 2026 investor letter:

“Adobe Inc. (NASDAQ:ADBE) is a leading cloud software vendor. Its industry-standard creative tools are deeply embedded in professional workflows, and its leading marketing software suite enables enterprises to deliver personalized consumer experiences across multiple channels. Adobe’s earnings multiple has compressed over the last two years, largely driven by investor concerns over potential AI headwinds. We believe Adobe’s AI strategy is sound: it is partnering with leading AI models to complement its own in-house models and enhance the value of its creative software, and it is embedding agentic AI tools across its product portfolio to help improve user productivity. We believe that the company retains durable competitive advantages across multiple growing markets, and that recent skepticism has created an opportunity to invest in this highly profitable and well managed category leader at a meaningful discount to our estimate of intrinsic value.”

6. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holdings in Q4 2025: 118

Enterprise workflow management software provider ServiceNow, Inc. (NYSE:NOW)’s shares are down by 50.9% over the past year and by 32% year-to-date. Bank of America discussed the firm on May 19th as it reinstated coverage and set a $130 share price target and a Buy rating. The bank saw ServiceNow, Inc. (NYSE:NOW) as a beneficiary of the AI rollout due to its integration into the enterprise workflow ecosystem. While the shares are down year-to-date, they are up by 14.5% since May 13th. Cramer briefly commented on the move in ServiceNow, Inc. (NYSE:NOW)’s shares:

“I was doing some work on Adobe, losing the schools. You know schools are really important, because you have to take a course on Adobe to be able to use Adobe. That stock’s been going up, I think that that’s had its move. ServiceNow had its move.

“Do I like that Micron is running ahead of time? No. But ServiceNow’s had a good run.”

TCW Concentrated Large Cap Growth Fund discussed ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:

“Our weakest relative performance during the quarter came from the information technology and healthcare sectors. Shares of ServiceNow, Inc. (NYSE:NOW; 2.60%**) moved lower despite reporting solid quarterly results in late January. Operating margin (33.5%) and EPS (+30% YoY) topped consensus estimates, and cRPO (current Remaining Performance Obligations) grew 20.5% (vs. guidance of +18%). Management’s sequential forward guidance for cRPO was only in-line with consensus estimates, however, and provided ammunition for bears to posit NOW’s three recent acquisitions (Armis, Moveworks and Veza) were a signal that organic growth may be slowing. While we believe the organic growth outlook remains healthy and that all three acquisitions are good strategic fits that help expand NOW’s TAM (Total Addressable Market) and differentiation, the rise of agentic AI led to an abrupt market sell off in many SaaS (Software-as-a-Service) stocks, including NOW. The market’s current view is that well-funded AI labs such as Anthropic and OpenAI will allow enterprises to bypass specialized software, thus reducing the need for NOW’s offerings. Though we recognize the industry is shifting away from seat-based to consumption-oriented pricing structures, we believe the complexity and switching costs for an enterprise migration is misunderstood by the market. Our view remains that NOW is strongly positioned to capitalize on AI monetization given its role as the system of engagement across enterprise workflows. While still somewhat early, NOW’s monetization of AI offerings is impressive (closed 12 Now Assist deals over $1 million in ACV during the quarter, Agent Assist consumption grew 55x since the launch in May 2025, and $600 million ACV for Now Assist). We remain constructive on shares.”

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