On Thursday’s episode of Mad Money, host Jim Cramer discussed the role of speculative stocks in a personal investment portfolio, noting that there is indeed room for speculation.
“How many speculative stocks can you own? This year, we’ve seen fortunes made in speculative stocks, and by speculative, I mean companies that don’t turn a profit, or maybe they have some earnings, but you’re paying a ridiculous multiple for them. I’ve wrestled mightily with this particular question for my Charitable Trust… I am actually all in favor of speculation, but it’s gotta be done wisely. In fact, if you’re younger, I actually insist that you speculate.”
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Cramer emphasized that building a diversified portfolio of individual stocks should include a mix, recommending at least five holdings, with one or possibly two being speculative if the investor is young. But he stressed repeatedly that such investing needs to be approached with caution and strategy.
Cramer explained his method for managing risk when it comes to speculative names: if one of these high-risk stocks performs exceptionally well, he advises gradually selling parts of the position until only profits, what he calls “playing with the house’s money”, remain in the trade. At that point, he said that he has no issue with letting the rest of the position continue to run.
“If you buy the high-risk stocks I just mentioned, you need to understand that they’ve all already had remarkable runs, but you could have said the same thing six months ago, and you would’ve missed a great rally. I know that most people in the business look down on these kinds of stocks, and by extension, look down on me, but my job is to help you try to make as much money as possible legally. Owning a speculative name or two is perfectly fine as long as you understand that you can lose a great deal of money when you’re wrong. But if you speculate wisely, my exhaustive research shows that the good ones should more than make up for the losses.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Was Focused on These 13 Stocks
13. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 17
D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks Jim Cramer was focused on. Cramer noted that a few speculative stocks should be included in a portfolio and said:
“What [are] examples of what speculation means?… IONQ just signed a Memorandum of Understanding with the Department of Energy, an MoU with the DoE, to develop quantum technologies in space. When you see deals like this, they ignite D-Wave. We had them on, D-Wave Quantum, pretty interesting. Rigetti Computing, huge money losers, but… their stocks can really rally on any positive quantum news, and there’s plenty of news because theoretically, quantum computing is the fastest kind of computing. It’s specifically endorsed by Jensen Huang, the CEO of NVIDIA. Less than a year ago, he was very skeptical. Now he’s a believer. So is IBM.”
D-Wave Quantum Inc. (NYSE:QBTS) develops quantum computing systems, software, and cloud services, including its Advantage computers, Ocean tools, and Leap platform. The company’s hybrid quantum solutions are applied in areas such as logistics, drug discovery, portfolio optimization, and industrial design.
12. Rocket Lab Corporation (NASDAQ:RKLB)
Number of Hedge Fund Holders: 46
Rocket Lab Corporation (NASDAQ:RKLB) is one of the stocks Jim Cramer was focused on. Cramer said it is the “most visible” one among rocket ship companies. He commented:
“What [are] examples of what speculation means?… There are many others that fit the pattern, and they’re all rocket ships. Oh, then there are the literal rocket ship companies. Rocket Lab, RKLB, is the most visible.”
Rocket Lab Corporation (NASDAQ:RKLB) provides launch services, spacecraft manufacturing, and satellite management solutions, including its Electron small launch vehicle and developing Neutron for larger missions. The company also supplies spacecraft components and subsystems. During the September 9 episode, Cramer mentioned the stock and commented:
“The stock ran out of steam in July, and since then, it’s gradually come off its highs, mostly trading sideways for the past two months. This… consolidation… I know that Bob likes very much. Of course, Lang (chartist Bob Lang) points out the Rocket Lab’s still up roughly 220% from its April lows. It’s a rally that’s mainly occurred on heavy volume. This is one of those stocks that’s beloved by younger retail investors, although Lang thinks it’s starting to attract interest from big institutional money managers too.
He sees the stock’s recent pullback to the 50-day moving average… as another chance to buy the dip. And I know many of you probably think dip? But in this… speculative world, that is a dip. When you look at the action over the summer, Rocket Lab pulled back hard, then rebounded dramatically on high volume a few weeks ago before cooling off again.
When you look at the on-balance volume, again… and also the moving average convergence divergence… You get some really good buy interest. It is due. This is a $47 stock that could move above $60 in short order. I like that move. And you know what? If the Fed gets aggressive cutting interest rates, all these speculative names are just going to roar higher. So… let’s think about Rocket Lab. That one looks very right.”
11. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 36
Oklo Inc. (NYSE:OKLO) is one of the stocks Jim Cramer was focused on. When suggesting nuclear stocks, Cramer mentioned the company and said:
“What [are] examples of what speculation means?… Second kind of speculation, thesis stocks. Case in point, America’s short on power. We need every kind of energy… We need nuclear? That’s Oklo.”
Oklo Inc. (NYSE:OKLO) develops advanced fission power plants to deliver scalable clean energy and commercializes nuclear fuel recycling to convert waste into usable reactor fuel. During the September 9 episode, Cramer said that he does not think that the company’s stock is “done going higher,” as he remarked:
“Then viewers urged me to focus on nuclear power. When I looked up over, when I looked over the group, I found one that seemed like a serious spec, Oklo, which is building small form nuclear reactors. Given the high demand for electricity thanks to the data center buildout, which we heard just again tonight with Oracle, and the fact that Oklo’s a company with significant customer interest, I decided to suspend my critical judgment. And I told you that it might take only one positive headline for this stock to rock, and sure enough, a $33 stock gapped up when it was selected for a DoD contract. I don’t think it’s done going higher.”
10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 43
Bloom Energy Corporation (NYSE:BE) is one of the stocks Jim Cramer was focused on. Discussing speculative stocks for energy, Cramer mentioned BE and said:
“What [are] examples of what speculation means?… Second kind of speculation, thesis stocks. Case in point, America’s short on power. We need every kind of energy. We have to tap into hydrogen fuel cells. That’s Bloom Energy.”
Bloom Energy Corporation (NYSE:BE) designs and installs solid-oxide fuel cell systems that generate electricity from natural gas, biogas, or hydrogen without combustion. During the September 16 episode, Cramer said that he should have recommended the stock but did not. He commented:
“Now I’ve always admired Bloom’s technology, but frankly, I never thought much of its stock because the company’s been a chronic money loser. For years, the stock did nothing, and eventually I stopped paying attention to it. That was wrong. And now we’ve got still one more reason why, Oracle. If you want to build as many data centers as Oracle’s planning to, you need turnkey power because we know that electricity’s the biggest gating factor for these behemoths…
In short, after being a severe disappointment for years, Bloom is now one of the great success stories of this remarkable era… How about the stock? Like so many other small-cap that provide key parts and power to the data center, it’s gone ballistic, not just parabolic but ballistic. It’s up roughly 230% year to date, going from 25 to $72… My conclusion was a simple one: I missed it. Therefore, it’s not my cup of tea. All day, though, I’ve been wondering whether that’s actually true. I mean, Bloom’s a $17 billion company now with promising contracts and a pedigree of fantastic technology…
But after this huge move, I worry about recommending Bloom because I don’t want to hurt you. That said, Bloom could be very real. It just happened so fast that I didn’t grasp it, and now the easy money’s obviously already made… Still, tired as it sounds, I think you have to wait for a pullback for Bloom, like the one nuclear’s experiencing right now. And admit, darn it… I should have recommended Bloom Energy to you. I didn’t. My bad.”
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer was focused on. Cramer commented that it is a speculative stock because it has a very high valuation. He stated:
“What [are] examples of what speculation means? Let me give you some categories. Alright, first, there are the richly valued stocks with real earnings like Palantir. Here’s a company that clients swear by because it aggregates data, uses artificial intelligence to find patterns that can turbocharge sales and earnings. People love this company. It’s also got a cybersecurity aspect. Palantir’s profitable, but the stock now sells for 277 times this year’s projected earnings. That’s why it’s speculative.”
Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that help organizations integrate, analyze, and act on complex data for intelligence, security, and enterprise operations. During the September 9 episode, Cramer said that the stock can “supercharge your entire returns” for a long time, as he said:
“Everything changed when the stock of Palantir arrived. The defense-oriented software company that relies heavily on artificial intelligence saw its stock rally from… $35 a year ago to $162 today on the strength of a series of very strong reports that vastly exceeded projections. Real stuff. I’ve been around for a while, and… it really isn’t easy to spot new patterns, but as I say in How to Make Money in Any Market, the speculative plays do deserve a place in your portfolio. One, Palantir, which I continue to say will go above $200, can supercharge your entire returns and not just for days or months, but even for years.
When I saw the saga of Palantir unfold, I realized there’d been a sea change in this market. A new cohort of investors welcomes stocks with fantastic stories, and they keep buying those stocks for a long time after the news broke. Historically, good news would produce a ripple in a stock, but now it’s a flood, and it’s almost like an endless flood.”
8. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 19
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the stocks Jim Cramer was focused on. A caller asked for Cramer’s thoughts on the stock, and he stated:
“SoundHound, it’s a meme stock. You know, I don’t, I just am not into the meme, I mean, I’m willing to talk about the meme stocks forever, research the meme stocks forever, but own the meme stocks forever? No.”
SoundHound AI, Inc. (NASDAQ:SOUN) develops voice AI solutions that power conversational experiences for industries such as automotive, IoT, and customer service. In a July episode, while answering a question about the company, Cramer said:
“SoundHound, okay. So SoundHound is one of those stocks that has to be eviscerated over the next couple of days because it’s part of the evisceration crowd. I mean, one of the things that’s happening here is we’re in a rotation, selling all these stocks and… buying a stock in Campbell Soup. Now that is not necessarily my kind of rotation, but it is one that is going on. And I have to say, I would be a little careful, SoundHound.”
7. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 68
The Kroger Co. (NYSE:KR) is one of the stocks Jim Cramer was focused on. A caller inquired if they should buy more of the stock, and Cramer said:
“I like Kroger right here. I like Kroger. I think the numbers have been better than expected traditionally. I can’t believe it has drifted down here. People are worried about food inflation. I totally get that. They’d rather own Walmart. I totally get that. I like Kroger. I do like Costco even more, but Kroger’s less expensive.”
The Kroger Co. (NYSE:KR) operates grocery, multi-department, marketplace, and warehouse stores. The company provides food, pharmaceuticals, fuel, and general merchandise. When a caller inquired about the stock during a June episode, Cramer responded:
“Alright, I’ll tell you Kroger stock is rolling over… That’s the problem. It’s just rolling over, and when I see a stock rolling over at 13 times earnings, I say to myself, okay, let it come down. Buy a little, buy a little, and then wait for the next level. Do not buy all at once. It could be a bad sign that this stock is having such a hard time at this particular moment, and it sure is. 73 down to 64. How about [we] wait till it goes to 60? Then we see whether the chart’s a little better right there.”
6. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 66
Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer was focused on. A caller asked whether to add to their position after a decline or hold steady. In response, Cramer said:
“I think you buy more. I think that what’s happened here frankly is, is that it did get a little ahead of itself. The turn’s taking a little bit longer, but you know what? It doesn’t matter. We want to own this thing. It’s like, remember when I sold Oracle because I got impatient? I’m never going to forget that ever. And I think those who are impatient [with] Starbucks are making a very big mistake. My faith is in, with Brian Niccol.”
Starbucks Corporation (NASDAQ:SBUX) roasts, markets, and sells coffee, beverages, and food items through its stores, licensed outlets, and retail channels. Cramer mentioned the stock during an August episode and commented:
“The last three coffee bull markets were followed by 50 to 65% corrections. If the current rally behaves in line with the past, that’s going to be brutal. Now that is very good news for Starbucks, another stock that the Charitable Trust owns. Although I gotta tell you, that stock has been made weak by the coffee prices. But there’s so many other factors involved that I think coffee prices are actually a smaller part of what’s wrong with the stock than, let’s say, a lot of other things.”
5. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 75
MongoDB, Inc. (NASDAQ:MDB) is one of the stocks Jim Cramer was focused on. A caller inquired about the stock’s potential as an AI-related investment, and Cramer replied:
“There are others that are much better. You know what? And I don’t like to fool around on the AI plays. We got the best AI company in the world, which is NVIDIA, and I know it’s moved a lot, but you know what? It’s the best and I like to buy the best.”
MongoDB, Inc. (NASDAQ:MDB) provides a general-purpose database platform, including its cloud-based Atlas service, Enterprise Advanced for hybrid use, and Community Server for developers. Additionally, it offers consulting and training services to support its database solutions. When a caller asked about the stock in a February episode, Cramer called it a “trade” and “not an investment.” He remarked:
“Oh yeah, I… will say this… You’d be catching it at the right time. I think the analysts are all starting to upgrade the, the enterprise software again. I think it’s worth a stab, I really do. But it’s a trade, it’s not an investment.”
Since the above comment was aired, MongoDB, Inc. (NASDAQ:MDB) stock has gained 17.2%.
4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer was focused on. Cramer mentioned that stocks like MSFT are where the money is being made, and said:
“Alright, so today, Microsoft, Amazon, and Tesla were silent. That’ll probably change tomorrow. So many people have tried to scare you away from investing in individual stocks for almost 25 years, and yet that’s where all the money’s being made and has been made. These experts don’t even want to admit that the Magnificent Seven exist. They think it’s too risky to chase gains in the individual companies. They hated me for coming up with FAANG. Yeah, that was 12 years ago. I don’t care. I gotta deal with reality because my job is to help you try to make money, not pontificate and decide that you can’t or shouldn’t.”
Microsoft Corporation (NASDAQ:MSFT) develops software, cloud services, and devices, with products such as Microsoft 365, Azure, LinkedIn, Dynamics, and GitHub. Moreover, the company provides Windows, Surface hardware, Xbox gaming, search and advertising services, and enterprise solutions.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks Jim Cramer was focused on. Cramer praised the company’s CEO, Lisa Su, during the episode and stated:
“When Lisa Su took over at AMD and set her sights on taking Intel’s business, she succeeded beyond her wildest dreams. Intel had roughly 85% of the PC market when Su took over 11 years ago. AMD had about 15. Now, AMD holds about 40%. In the huge server market, AMD had only 1 to 2%. Now, it has more than 25%. In both cases, AMD’s still gaining share while Intel feels lost at sea, dazed and confused… AMD, okay, new competitor, but Lisa Su is used to it. That’s why the stock, her stock, was initially down a lot, but bounced back. You can never count out Su. She’s too good.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs semiconductors, including CPUs, GPUs, FPGAs, and adaptive SoCs, along with AI accelerators and custom solutions. Its products are sold under different brands, including Ryzen, Radeon, EPYC, Instinct, and Versal.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer was focused on. Cramer said that the company can “execute” under the CEO Lip-Bu Tan.
“First, let me tell you these incredibly wild circumstances that explained why Intel even needed the cash so that NVIDIA could make the profit. At one time, Intel was by far the most important semiconductor company in the world. It owned the PC and server market, but it didn’t go into fast chips… Not only that, for years Intel ran circles around Advanced Micro Devices, but when Lisa Su took over at AMD and set her sights on taking Intel’s business, she succeeded beyond her wildest dreams… Intel feels lost at aea, dazed and confused.
A few years ago, Intel picked a new CEO, Pat Gelsinger, who vowed to stop losing share in PCs and servers while taking on NVIDIA in accelerated computing and artificial intelligence. Oh man, he spent fortunes far more than Intel could afford. Although he caught a break when the federal government gave Intel some big handouts from President Biden’s Chips Act, but it wasn’t enough. No, uh-uh… Gelsinger was ultimately fired. In came Lip-Bu Tan, possibly the greatest semiconductor venture capitalist in history… Once he came in, he had to end the runaway manufacturing train and raise cash in a hurry, and he’s proved quite adept at that…
Last night, he got that 5 billion from NVIDIA, $23 and 28 cents per share… Intel stock immediately zoomed from just under $25 to 30.57 tonight… Now that was a remarkable move. In return for the money, Intel got a new partner in its PC and server business, where more than 50 billion is up for grabs… Meanwhile, Intel stays in business and can thrive if it executes, and I think it can under Lip-Bu Tan.”
Intel Corporation (NASDAQ:INTC) develops and manufactures semiconductor. It offers CPUs, GPUs, FPGAs, SoCs, memory, and networking products along with AI, edge, and autonomous driving solutions. In addition, the company provides software, design services, and advanced process technologies.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer was focused on. Cramer said that the stock offers returns beyond what index funds can deliver. He commented:
“There’s so much money parked in index funds that sometimes we forget that those indices are made up of individual stocks. The indices certainly weren’t created for the stock of NVIDIA, though, a company with a $4 trillion market cap, that’s not at all hostage to interest rates. In fact, it’s not even hostage to its own industry as we saw today, which is why NVIDIA could make a $5 billion investment in a one-time semiconductor kingpin today, Intel, and see its own stock rally, 3.5% or $150 billion in response. You spend 5 billion, and you tack on $150 billion in market cap. Now that’s a miracle…
More important for our purposes, NVIDIA, which had seen in stock in the doldrums of late because of its China problems, broke out of that sphere of influence for the moment… There’s a lot more to NVIDIA than China, and there’s still a lot of money to be made in individual stocks, including the biggest one in the world, NVIDIA.
… Can you game NVIDIA? Okay, here’s what you can do. Stop the gaming. You can invest in Jensen Huang and his amazing team. Invest. You can let NVIDIA, a veritable index of chip companies, make you the kind of money index funds can’t ever keep up with. You can own NVIDIA and not have to trade it. I wouldn’t be so focused on NVIDIA today if it weren’t for the fact that it’s one of a handful of companies that seems very much in charge of its own destiny.”
NVIDIA Corporation (NASDAQ:NVDA) provides GPUs, AI platforms, cloud services, and networking solutions for gaming, data centers, automotive, robotics, and enterprise applications.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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