In this piece, we will look at Jim Cramer’s bold AI stock predictions.
Courtesy of the boom in AI stocks, Jim Cramer has regularly discussed AI on his appearances this year. In a recent Squawk on the Street show, he shared tips on how to become the ‘king’ of AI. According to Cramer, the key to success in the AI era is to learn how to write the correct prompts for the chatbots:
“I will say that after listening to all these companies, those who know how to prompt, are those who are going to win. Now maybe superintelligence would help me learn how to prompt but, if you, like let’s say you go in this morning, like I went, to Confluent. Which is down big. What’s the problem with Confluent? They all give me different answers. And that’s because I said, what’s the problem with Confluent. Right, and that’s the newbie way to do it. Those who know how to prompt are king.”
While one concern about AI has been potential job losses, Cramer pointed out in another appearance that AI could also lead to job growth, particularly in the data center and power generation industries:
“It does because it’s a gigantic amount of money going into a concentrated area with a lot of different contractors and you need energy to get to the data centers which is part of the Eaton’s issue. You got the electric grid maybe growing 5%, that’s a giant issue. These are all things that make it so that anybody that can get a job if they have any sort of kind of a, I don’t know want to say handy, cause that sounds silly. But if you want a job, you’ll get a job. You’ll get a job.”
Our Methodology
To make our list of Jim Cramer’s bold predictions about AI stocks, we sifted through his remarks dating back to August 2024 and made a list of the relevant comments.
For these stocks, we also 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
20. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q2 2025: 235
Date Of Cramer’s Remarks: 8-20-24
Share Price Performance Since Then: 40.4%
Due to its central role in the AI industry, NVIDIA Corporation (NASDAQ:NVDA) has been a regular feature of Cramer’s morning shows. Since his comments in August, the stock has gained 40.4%. NVIDIA Corporation (NASDAQ:NVDA)’s shares would likely have been much higher had it not been for the massive DeepSeek selloff in January, which led to the firm bleeding nearly $600 billion in value. Between August and December, NVIDIA Corporation (NASDAQ:NVDA)’s shares were rather static as they gained less than 7%. The weak share price performance was due to investors waiting to see if the firm could sustain its sizable AI demand. Cramer was also cautious about NVIDIA Corporation (NASDAQ:NVDA) back then:
“I almost feel like you can guess it—it’s Nvidia. It’s the king, and the rest of the market is made up of its pawns, marching to Nvidia’s drum. Remember this morning when I was on the call and said, ‘Look, Nvidia is almost too important. There’s too much pressure on Nvidia—can it sustain it? I don’t want Nvidia to be Samson.’
“Take a look at this daily chart of Nvidia, going back to February. By the way, Larry, who advised selling Nvidia just before it peaked in the spring, predicted the stock would rise again in late May. Larry and his video calls have closely tracked the stock’s short-term cycle in red, which has followed the share price surprisingly well.
“Unfortunately, the short-term cycle now projects that Nvidia should peak sometime next week, leading to a sell-off that may extend through mid to late October. Nvidia reports next week, and the long-term cycle indicates a bottom around the same time. Given that Larry sees Nvidia as the lynchpin of the market, it makes sense that the cycle forecast predicts a downturn for Nvidia, aligning with expectations for the S&P 500.
“Yes, Nvidia is that influential. The chart interpreted by Larry Williams suggests that we might experience some pain as August ends, which could continue through mid to late October. I hope he’s wrong this time, but it’s wise to consider his analysis seriously. For my money, there’s a good chance he could be right, especially if Nvidia’s outlook isn’t strong.”
19. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders In Q2 2025: 187
Date Of Cramer’s Remarks: 8-12-24
Share Price Performance Since Then: 36%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer, which means that most of the world’s AI chips will be manufactured in its foundries. Cramer assured a caller on Mad Money not to worry about the stock, and he turned out to be right since the shares have gained 36% since then. Since the CNBC TV host made the remarks, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s shares have benefited primarily from strong earnings reports, which have seen it deliver as much as a whopping 61% growth in profit. Here is what Cramer said about the firm in August 2024 after a viewer asked him whether the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a good long-term stock to buy:
“I think you’re fine. I think that there’s always going to be a worry about Taiwan. I think that if you go back to what Lisa Su said, she didn’t tell you not to worry about it because nobody says that. She says, you know, this one is not going to be a problem, and I’m with her.”
