In this article, we will look at Jim Cramer’s latest stock calls, as he advised investors on how to manage data center-related stock positions. The host of Mad Money spoke on Friday about how dominant the data center trade has become and how investors should navigate it.
Is there anything beyond the data center that’s worth buying here? Honestly, no, at least not this very moment. I mean, you know, look, the data center’s sucking every dollar out of the room. I’ve never seen anything like it. We got a bunch of these names for the Charitable Trust, not just because they’re in the data center, but because they will have the best earnings growth of all companies, and that’s what moves stocks. Today, though, we trimmed some of those positions.
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Cramer emphasized that staying flexible matters, especially in technology. He pointed out that tech stocks frequently experience pullbacks, so investors need to be ready for those swings. Cramer said that selling into strength is part of that discipline, as it lets investors build cash so they can step back in when prices retreat, which he believes they eventually will. He explained that this is why his Charitable Trust decided to scale back certain holdings.
That’s why you need to look at your portfolio this weekend and see what you’ve made too much money on over the last few days. If one of your data center stocks is up 30 or 40% this week, you need to take something off the table Monday. If only so you have room to buy it back at a lower level the next time the group rolls over. Remember, history says it always does, and do not bet against history.
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 24. We listed the stocks in the order that Cramer mentioned them.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Jim Cramer’s Latest 9 Stock Calls: Broadcom, Strategy, and Others
9. Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) was among Jim Cramer’s latest stock calls, as he advised investors on how to manage data center-related stock positions. Cramer explained why the Charitable Trust trimmed the stock. He commented:
Today, the Charitable Trust sold some Broadcom, AVGO, a dominant player in networking and custom chips that has Meta, Anthropic, and Google as major customers. How can I bring myself to trim the stock of this… $2 trillion company that’s been delivering great numbers like clockwork? Simple, I am not a pig. I know that if the Trust doesn’t sell any Broadcom here, we could get walloped when the crowd turns against the stock, and the crowd will turn against it eventually because that’s what the crowd does… I have no particular reason to believe Broadcom deserves to go lower. In fact, I think it should trade higher, but that doesn’t matter.
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor devices and infrastructure software, including networking, connectivity, and storage solutions. The company’s products are used for applications in data centers, telecommunications, broadband, smartphones, industrial systems, and AI networking.
8. Strategy Inc (NASDAQ:MSTR)
Strategy Inc (NASDAQ:MSTR) was among Jim Cramer’s latest stock calls, as he advised investors on how to manage data center-related stock positions. Toward the end of the lightning round, when a caller asked about the stock, Cramer said:
No, no, no, no. We buy the Bitcoin. We don’t need Strategy. That’s too derivative. We just go buy Bitcoin. If we want to have Bitcoin exposure, we buy Bitcoin.
Strategy Inc (NASDAQ:MSTR) provides investors with exposure to Bitcoin through a mix of equity and fixed-income securities. In addition, the company offers AI tools that help businesses understand their data and make better decisions. Cramer showed a similar sentiment when he was discussing the company during the January 5 episode, as he remarked:
Alright, how about the worst performers in the Nasdaq-100 last year? At the very bottom of the index was Strategy… formerly known as Micro Strategy, which ended the year down 47.5%. Now, this is the original Bitcoin treasury strategy company, meaning a company that’s just buying crypto for its own account. For all intents and purposes, Strategy has become nothing more than a leveraged bet on Bitcoin. You like Bitcoin? Go buy Bitcoin. See, the leveraged bet worked great when Bitcoin was going higher, but not so great when it started pulling back like it’s been doing for the past three months, although it did have a nice bounce from the bottom at the end of the year. It’s nice today. My view, if you want Bitcoin exposure, avoid this one. There’s better ways, okay?
