In this article, we will discuss: Jim Cramer’s Latest Thoughts On Cisco, NVIDIA & Other AI Stocks. For more stocks, you can head to Jim Cramer’s Latest Thoughts On Cisco, NVIDIA & Other AI Stocks: Top 5 Stocks.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holdings in Q4 2025: 145
Health insurer UnitedHealth Group Incorporated (NYSE:UNH)’s stock is up by 43.6% over the past year and by 17% year-to-date. JPMorgan discussed the firm on April 28th as it bumped the share price target to $420 from $389 and kept an Overweight rating on the stock. A couple of days later, Goldman Sachs discussed UnitedHealth Group Incorporated (NYSE:UNH)’s stock as well. It kept a Buy rating and a $435 share price target and added the firm to its US Conviction List. As part of its coverage, Goldman remarked that the health insurance company appeared to be entering the bottom cycle for its Medicare Advantage underwriting. Cramer discussed UnitedHealth Group Incorporated (NYSE:UNH) as part of the healthcare insurance sector:
“If you look at healthcare insurance, those stocks are soaring, witness UNH hitting a new high, CVS just breaking out here and that’s Aetna. But healthcare in general. Wow.”
Vulcan Value Partners discussed UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2026 investor letter:
“There were seven material detractors to performance: Ares Management Corporation, Ryan Specialty Holdings, Inc., Microsoft Corporation, Salesforce, Inc., UnitedHealth Group Incorporated (NYSE:UNH), Amazon.com, Inc., and SAP SE. The evening before UnitedHealth Group reported fourth quarter earnings, which were in line with our expectations, the Centers for Medicare and Medicaid Services (CMS) released its 2027 Medicare Advantage Advance Rate Notice. The notice called for a 0.1% payment increase. Cost trend in Medicare Advantage is running high-single-digits. The 0.1% increase is clearly inadequate relative to cost trend. This announcement put pressure on the entire industry and UnitedHealth Group was no exception. On April 6, CMS released its 2027 Final Rate Announcement of 2.48% and UnitedHealth Group’s stock price has rallied since then. We believe that UnitedHealth Group serves a critical function in the healthcare system in the U.S. and that its role is entrenched despite short-term volatility associated with Medicare Advantage funding headwinds. We believe that value-based care must play a critical role in bringing down the cost of healthcare in the United States. In our opinion, no company is better positioned to drive better outcomes at lower cost through value-based care than UnitedHealth Group.”
4. CVS Health Corp. (NYSE:CVS)
Number of Hedge Fund Holdings in Q4 2025: 88
Health insurer CVS Health Corp. (NYSE:CVS) is another stock that popped on Jim Cramer’s radar. The shares are up by 58.6% over the past year and by 19.7% year-to-date. Wells Fargo discussed the firm on May 8th as it adjusted the share price target to $103 from $102 and kept an Overweight rating on the stock. The bank remarked that CVS Health Corp. (NYSE:CVS) could further revise its estimates to the upside for the rest of the year. In its latest quarter, the firm had raised its full-year 2026 profit per share guidance to $7.30 to $7.50 from an earlier $7 to $7.20. Cramer has praised CVS Health Corp. (NYSE:CVS) in several of his previous appearances, and he kept with the praise this time around as well:
“David Joiner he’s come in, he solved Aetna. And he’s basically just said, if you go through his deck, which was a brilliant deck. He doesn’t talk about the front of the store, we all think its CVS you go through there’s a candy aisle, there’s a halloween aisle, he’s turned it into a healthcare company and I really have to hand it to him because people didn’t understand, Walgreens is kind of going away, Rite Aid went away, he’s the only guy in town against Amazon, and that’s who he’s competing again. My hat’s off to him.”
3. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holdings in Q4 2025: 114
Walmart Inc. (NASDAQ:WMT) is one of Cramer’s top stocks in the retail sector. Over the past several months, the CNBC TV host has discussed the firm several times. Some of the factors that he’s praised Walmart Inc. (NASDAQ:WMT) for include the firm’s ability to compete with Amazon and its ability to keep prices lower for Americans. TD Cowen discussed the retailer on May 7th. It raised the share price target to $150 from $145 and kept a Buy rating on the shares. The financial firm discussed Walmart Inc. (NASDAQ:WMT)’s upcoming first-quarter earnings as it remarked that the retailer could be helped by stable demand for groceries and other factors. In this appearance, Cramer once again discussed Walmart Inc. (NASDAQ:WMT) as he compared it to Amazon. However, this time, he discussed a win for Amazon:
“I am so impressed with Walmart same day, I mean everybody is, but Amazon, I’m talking about the same couple of hours.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings in Q4 2025: 381
Amazon.com, Inc. (NASDAQ:AMZN)’s shares are up by 28.7% over the past year and by 16.6% year-to-date. The firm made quite a splash earlier this month when it announced a new supply chain initiative. Cramer discussed the announcement in detail and remarked that if firms like Procter & Gamble, which run some of the best supply chains in the world, are attracted by Amazon.com, Inc. (NASDAQ:AMZN)’s service, then the service must be good. Bank of America also discussed the announcement on May 4th and shared a different take on the supply chain service. It remarked that Amazon.com, Inc. (NASDAQ:AMZN)’s new service could also help the retailer improve its utilization of fixed assets. Cramer discussed the firm’s delivery timelines and its CEO:
“I am so impressed with Walmart same day, I mean everybody is, but Amazon, I’m talking about a same couple of hours.
“I’m a huge Jassy buyer, been a buyer, I’m like, early on, maybe even earlier than Jassy.
“You know Amazon’s, a lot of what he would say, Andy Jassy would say, Jim how could you not say our business in semiconductors is not thriving? We got a 50 billion dollar business, standalone, which is obviously not standalone. I think this is an inexpensive stock, versus what’s coming public today. I think it’s great.”
“These guys, you go out to see Amazon, and they don’t want the phony narrative that people don’t like. What they do want is to recognize that they’re not banning small and medium sized business. And that they are worldwide, and that they do care about rural and that the satellite business that they have can compete, it can compete with Musk!”
Baron Durable Advantage Fund discussed Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares declined 9.8% during the quarter after the company guided to $200 billion in fiscal year 2026 capital expenditures, above Street expectations. While we believe AWS revenue growth will accelerate meaningfully over the next two years, particularly as leading AI companies increase AWS usage, investors are concerned about the impact of sizable incremental investments on near-term profitability. Nevertheless, the company continues to expand operating margins across core North American retail, AWS, and international retail, driven by improved cost discipline and operational efficiencies. Over the longer term, Amazon has substantial room for growth in e-commerce, where it has less than 15% penetration of its total addressable market. Amazon also remains the clear leader in the large and growing cloud infrastructure market, with significant opportunities in application software, including enabling generative AI workloads while its full-stack approach, spanning silicon, systems, software, and developer ecosystem, and hence its competitive moat continues to widen. …” (Click here to read the full text)
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holdings in Q4 2025: 288
Technology giant Alphabet Inc. (NASDAQ:GOOGL)’s become one of Jim Cramer’s favorite stocks, as of late. Some of the factors that he’s praised when it comes to the company are its cloud computing business, YouTube, dominance in the search engine industry and strong performance with the Gemini AI model. Citizens discussed the firm on May 4th as it significantly raised the share price target to $515 from $385 and kept a Buy rating on the shares. The financial firm outlined that Alphabet Inc. (NASDAQ:GOOGL) was experiencing stronger growth across its Search, YouTube, Cloud and other businesses. Not only did Cramer discuss the cloud business, but he also praised Alphabet Inc. (NASDAQ:GOOGL)’s management:
“By the way, I think that Alphabet’s an inexpensive stock.”
“They won in Google versus Bing and they are not going to let up until they win in everything. You know, they won search, now they want to win in AI search. YouTube is the biggest station on Earth. They have Waymo in missions that are just extraordinary. . . .the big story is Google Cloud!. . .it’s a huge company, so I think Alphabet is just, they’re fabulous. And by the way, these people, they’re not cutthroat, they’re just, they’re fighters, but no one would ever, I kept trying to get people to denigrate other people, you know you wanted that false kind of narrative from the old days when I was a crime reporter, good guys and bad guys, no one bit. . .”
Wedgewood Partners discussed Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2026 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) grew its core search revenue by +17% and continues to accelerate as users spend more time on Google properties, driven by the Company’s AI offerings (AI Mode and AI Overviews). At the same time, Google advertisers are adopting more AI-enabled tools to improve ad relevance and accuracy. These AI gains are unlocking significant productivity and driving margin expansion across both core Google services and the $70 billion run-rate Google Cloud business. Given this massive operating leverage, an accelerating revenue profile, and a historic ability to generate high returns on invested capital, we believe their elevated capex spending plans this year are fully justified. We continue to hold Alphabet as a top weighting.”
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about the cheapest AI stock.
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