Jim Cramer, host of Mad Money, discussed the current state of the homebuilders sector on Thursday.
“We’re starting to wind down for the year, but there’s still some big reports coming from industries that are real battlegrounds. Take the home builders… This is a group that Wall Street’s wanted to like for a long time. The iShares US Home Construction ETF, that’s called the ITB, rallied more than 40% from early April to its highs in early September, mostly in anticipation of another round of… rate cuts from the Fed. But now those rate cuts are here, and the situation is not playing out the way the bulls hoped. See, long-term rates, the ones set by the bond market that actually control the cost of your mortgage, they haven’t really played ball.”
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Cramer highlighted that the 30-year Treasury yield currently sits at 4.8%, slightly down from its peak near 5%, but still higher than levels that would significantly ease mortgage costs. Since mid-October, yields have been trending upward, which offered only modest relief. He explained that homebuilders’ stocks began to decline in September and continued falling until mid-November, only stabilizing when investors started to anticipate a December rate cut from the Fed. He noted that now that the cut has occurred, the sector has struggled to find direction. He explained that homebuilders are not in strong shape, and anyone considering an investment is effectively betting on a meaningful improvement in 2026, which remains uncertain.
“The bottom line: At the end of the day, you don’t need to be a hero in the housing space. If you want to make a bet on a turnaround for the builders, I think you should start small for now and wait for a clear sign that the buyers are returning before you make any big bets. And we are most certainly not there yet.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 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’s Latest Insights on These 13 Stocks
13. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer offered insights on. Cramer mentioned the company while discussing two of his “favorite” stocks. He remarked:
“The rest of tech took its cue from Micron and broke the recent downtrend, even though the supply-demand situation for most of these companies, quite different from Micron. For instance, let’s say two of my favorites, Broadcom and NVIDIA, both of which are up today. They simply do not have the same situation at all… NVIDIA and Broadcom are what’s known as fabulous companies. They make their chips through Taiwan Semi. That’s who actually does the manufacturing. If demand overwhelms supply, it’s Taiwan Semi’s problem. That’s why even though Micron’s crying about demand, it doesn’t exactly translate to Broadcom and NVIDIA, unlike Western Digital and Seagate, which are basically in the same kind of business as Micron, albeit with less intellectual property.”
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies. Cramer discussed the stock during the December 15 episode and said:
“Understand, I’m not trying to say that tech stocks can’t be owned here. We own a bunch of them for the Charitable Trust, we always have, along with NVIDIA and Broadcom. I really like them. I’m just a lot less enthusiastic than I used to be because there’s competition all over the place, and they’re spending like crazy, and the stocks have still had big moves.”
12. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer offered insights on. Cramer noted that it makes sense for the company to “blow away the estimates,” as he commented:
“Yes, it makes sense for Micron… to blow away the estimates and see its stock fly 10% today. This may be the second-largest beat I’ve ever seen, only behind the monster quarter that NVIDIA put up two years ago. It was magnificent. But you must realize that, as great as this is, there’s a very simple reason for Micron’s strength. Demand overwhelms supply…
Look, there have been many times when Micron’s had more demand than it can handle in the 30 years I… [have been] following the company. This time seems much more lasting because there are extreme shortages for all the machines Micron would need to expand its production capacity…
Micron… is the way business should be done. Micron is not paying anyone to take their stuff. There’s just so much demand in these memory chips that they can’t possibly make enough of them. They’re trying hard to allocate what they can give to customers. In the end, that makes me like Micron a lot more than some of these other companies that have an air of desperation around them. I’m a simple guy. I don’t want a stake in a company that wants to buy products because I have no idea what that stake might… be worth. I want to be paid with cash on the barrelhead. Micron’s a cash machine. When in doubt, you know what? You always go with cash. The other methods may come back to bite you.”
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions, including DRAM, NAND, and SSD products, under the Micron and Crucial brands.
