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?”
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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.”
4. CRH plc (NYSE:CRH)
Number of Hedge Fund Holders: 89
CRH plc (NYSE:CRH) is one of the stocks Jim Cramer was focused on recently. During the lightning round, when a caller asked about the stock, Cramer remarked:
“It’s just, it’s as hot as a pistol. We know that that is the area that is holding up fine, despite the fact that there’s no housing to speak of. Great call there.”
CRH plc (NYSE:CRH) supplies building materials and construction solutions for infrastructure, commercial, and residential projects. The company produces cement, aggregates, concrete, asphalt, and precast products. In addition, it provides outdoor living and utility infrastructure solutions. During the April 23 episode, a caller inquired about the stock and Cramer responded:
“You know, building materials right now is not the place to be. I’ll tell you, though, if you really want to be in, near that area, I would go with Martin Marietta Materials or even Vulcan Materials. Those are my two material stocks that I like.”
Since the above comment, CRH plc (NYSE:CRH) is up around 34%.
3. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 66
Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer was focused on recently. Cramer called the company’s CEO a “proven turnaround artist.” He said:
“It’s been a little more than a year since Starbucks brought in Brian Niccol, a proven turnaround artist, to take over the business. Since then, he’s already made major strides in breathing new life into the story, although the stock’s still struggling. There’s been a lot of speculation about the value of the China business of Starbucks. The CEO now tells me it’s expected to be north of $10 billion. That includes the upfront investment by a potential partner, with the company retaining a stake in the China business and the future royalty payments.”
Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and food products. The company provides its products under Starbucks Coffee, Ethos, Teavana, Seattle’s Best Coffee, and Starbucks Reserve brands. During the September 25 episode, Cramer discussed its worker lay-off announcement, as he remarked:
“Finally, there’s Starbucks, which today announced that they were laying off 900 corporate workers, as they also told us they’d be shrinking their North American store count by 1% this year. It’s a billion-dollar restructuring plan. It’s meant to make Starbucks more profitable. You could argue that this could have been done at any time, but I think Starbucks is part of the real economy, and the real economy, it stinks. I remain very bullish, though. I think CEO Brian Niccol’s plan to get Starbucks back on track is terrific. And I advised members of the CNBC Investing Club in our morning meeting streaming show, do some buying. It’s going to send the earnings up, not down.”
2. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Holders: 35
Whirlpool Corporation (NYSE:WHR) is one of the stocks Jim Cramer was focused on recently. During the episode, a caller inquired about the stock, noting that it has a 4% yield and is near its 52-week low. In response, Cramer said:
“Whirlpool, it’s kinda like the Bengals. Look, there’s just not enough, the balance sheet’s not that great. They had to cut the dividend. It’s exactly the thing I’m most worried about. A dividend cut means don’t buy, don’t buy, don’t buy.”
Whirlpool Corporation (NYSE:WHR) manufactures and sells home appliances, including refrigerators, laundry machines, dishwashers, and cooking products. During the July 29 episode, Cramer mentioned the company and commented:
“But UPS wasn’t the only one. Whirlpool, which was supposed to be helped by the tariffs at least eventually, instead got walloped by them, crushed. Ugly. Whirlpool’s last man standing when it comes to appliances, the only one that’s still domiciled in this country, but the big appliance makers from South Korea and China, they’re not dummies. They knew they’d struggle with the tariffs on their countries, so they front-loaded their inventory, shipping lots of appliances here ahead of time.
The result, the foreign onslaught crushed Whirlpool. It reported an astonishing weak quarter, taking its earnings forecast down from $10 per share to the $6 to $8 range. Worse, they took a meat ax to their dividend, cutting the quarterly payout from $1.75 per share down to a shocking 90 cents. Let’s call it a collaterally damaged situation because tariffs were meant to help Whirlpool. Instead, they blew up the dividend, which, when you include a dismal outlook, is why the stock was down an astonishing more than 13% today.”
1. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer was focused on recently. Cramer discussed the company CEO’s keynote speech and stated:
“Well, it’s making a very big push into the enterprise using its own AI. But after CEO Marc Benioff’s keynote speech at Dreamforce about his Agentforce initiative, the stock actually got dinged today, falling more than three bucks. Ouch. Wall Street’s skeptical that Agentforce won’t matter to the stock until more business comes from it.
I don’t know if the stock can turn until AI is driving the company’s numbers, but what’s not in doubt? How about the sheer amount of what we call compute? The juice needed to power Agentforce and every other application of… artificial intelligence. In other words, to get a machine to act like a human or smarter than a human, you need to spend a ton of money on the backend with warehouses and warehouses full of servers making it all possible.”
Salesforce, Inc. (NYSE:CRM) provides CRM and AI-driven platforms that help businesses manage customer relationships, data, and operations.
While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) 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 CRM and that has 100x upside potential, check out our report about this cheapest AI stock.
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