Jim Cramer’s Hottest AI Stock Picks: Top 5 Stocks

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1. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holdings in Q3 2024: 58

Number of Hedge Fund Holdings in Q4 2025: 67

Performance Since Cramer’s Remarks: 91%

Date/Month of Cramer’s Remarks: February 18th, 2025

KLA Corporation (NASDAQ:KLAC) is exposed to the AI market through its ability to manufacture products that are used in semiconductor fabrication. The shares are up by 105% over the past year and by 91% since Cramer discussed the firm on February 18th. 2025 was a strong year for KLA Corporation (NASDAQ:KLAC)’s stock, with the only wrinkle in the performance coming in August when the stock closed 8.4% lower on August 15th. The shares dipped after peer firm Applied Materials guided a 15% profit dip in its fourth quarter. Similarly, KLA Corporation (NASDAQ:KLAC)’s shares dipped on August 30th as the US government levied more restrictions on chip equipment sales to China. However, the biggest dip came on January 30th after the stock closed 15% lower following the firm’s second quarter earnings report, which saw CFO Bren Higgins discuss longer equipment lead times and the impact of tariffs on profit. In February 2025, Cramer recommended KLA Corporation (NASDAQ:KLAC) as a long-term pick in a Mad Money appearance:

“We want this to be the stock you put away in the drawer. No drama, just steady growth.”

While we acknowledge the potential of KLAC to grow, our conviction lies in the belief that some 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 KLAC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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