Jim Cramer, host of Mad Money, said on Wednesday that the massive investments Big Tech is making in artificial intelligence are not only justified but necessary.
“Maybe our brains are too small. Could that be the reason why we can’t get our silly little heads around the need to spend fortunes building out the data centers for artificial intelligence?”
READ ALSO Jim Cramer Recently Discussed These 8 Stocks and 6 Stocks on Jim Cramer’s Radar
Cramer emphasized that the real action is happening in the backend, the large-scale warehouses filled with servers that power AI systems. He described it as the core of what Jensen Huang has called the fourth industrial revolution. He compared it to previous major shifts in history: the steam engine, mass production and railroads, and then the rise of semiconductors and personal computers. As per Cramer, the AI era belongs in the same category, though it remains difficult for many to grasp its full significance. He pointed out that NVIDIA, along with AMD, is helping to lead the shift, with hyperscalers driving the infrastructure needed to support it.
“Here’s the bottom line: I can’t ask you to grow your head. I wish I could, but I can tell you that these people behind the AI revolution, they’re not clowns, they’re not mountebanks. They’re the best we have. You can question them, but my Charitable Trust is investing in them. After this trip, I definitely wouldn’t bet against them. I’d choose one or two and hold on for the ride.”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 15. 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Was Focused on These 6 Stocks Recently
6. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Number of Hedge Fund Holders: 8
Red Cat Holdings, Inc. (NASDAQ:RCAT) is one of the stocks Jim Cramer was focused on recently. When a caller asked about the stock during the lightning round, Cramer said:
“Okay, so this is a Ben Stoto favorite, not really. It’s a drone company. We are on the fence about buying drone companies that aren’t making money.”
Red Cat Holdings, Inc. (NASDAQ:RCAT) develops drone systems and control technologies for military, government, and commercial use. During the February 18 episode, Cramer mentioned the stock and remarked:
“This one just happens to be a personal favorite of our chief scientist, Ben Stoto. We talk about Red Cat a lot. It’s a data analytics company, and you know what? I’m going to tell you, you can buy it. You really can. Because if it doubled, you’d feel like an idiot for not buying Red Cat.”
It is worth noting that since the above comment was made, the company’s stock gained around 65%.
5. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 59
Cloudflare, Inc. (NYSE:NET) is one of the stocks Jim Cramer was focused on recently. Answering a caller’s query about the stock, Cramer said:
“I know it seems high in the 200s… But you know what? We are a big believer in Matthew Prince, and we’re not stopping here. We’re going to continue to support him. Maybe take some off the table, first point at 60.”
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and performance solutions that protect and optimize websites, applications, and IoT devices. Cramer discussed the company’s last earnings during the August 4 episode, as he commented:
“Looks like one of my favorites, Cloudflare, is finally getting its due after the cybersecurity company reported an excellent quarter last Thursday night, only to see its stock sink 3.6% on Friday, was dragged down by that quarter’s sell-off. Today, though, Cloudflare snapped back, up more than 4%, which makes perfect sense because these guys delivered a clean beat and raise quarter with better-than-expected numbers in every line for the quarter, and truly strong guidance. Initially, none of this seemed to matter, but with today’s rally, the stock’s now sitting at its highest level in nearly four years and within spitting distance of its COVID-era peak.”
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