Jim Cramer’s Opinion on 5 Stocks Like Alphabet and NVIDIA and Increased AI-Related Spending

In this article, we will look at Jim Cramer’s Opinion on 5 Stocks Like Alphabet and NVIDIA and Increased AI-Related Spending. Please visit Jim Cramer’s Opinion on 13 Stocks Like Eli Lilly and Boeing and Increased AI-Related Spending, if you’d like to see the extended list and methodology behind it.

5. DoorDash, Inc. (NASDAQ:DASH)

DoorDash, Inc. (NASDAQ:DASH) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. A caller asked whether the company could maintain its growth-stock valuation if elevated gas prices and slowing consumer discretionary spending expose vulnerabilities in its business model. Cramer replied:

I think… this is a great question. I debate it all the time because there’s a couple of stocks that came public during a period, and there’s kind of wavering sometimes. I think Tony Xu has done a remarkable job putting together the number one company in its field. I think that you’re absolutely right. It sells at a premium multiple, 32 times earnings; maybe that’s too expensive. Maybe the stock would be better bought if it got down to $100 to $120. But that said, I like the company and management very much.

DoorDash, Inc. (NASDAQ:DASH) runs a commerce platform that connects merchants, consumers, and delivery partners. The company provides delivery, payment, and marketing solutions, as well as subscription and white-label services for businesses.

4. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Inquiring about the stock, a caller mentioned they started a position because they are a gamer and expressed excitement about the upcoming GTA VI. Cramer replied:

I think it’s a great idea. I think Strauss Zelnick’s got a real winner. I understand that GTA VI is probably going to be the biggest entertainment property of all time. If you want to start a position, it’s down six today. I wouldn’t buy it all at once; it’s an erratic trader, but I share your enthusiasm for Take-Two Interactive.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) creates video games for consoles, PCs, and mobile devices. Some of its well-known games include Grand Theft Auto, Red Dead Redemption, and BioShock. During the March 6 episode, a caller asked whether it was a good time to invest in the stock, and Cramer responded:

No, it’s a great time. I think you’ve gotta get in before GTA, and I’ve been working a lot on this, and I am absolutely convinced that this recent dip, I wish it had been able to push it more under $200. It works. I want you to buy some here, and then if it goes below $200, pull the trigger on the rest. You are right to come in. I think this is a great level. Thank you for asking me about it.

3. Six Flags Entertainment Corporation (NYSE:FUN)

Six Flags Entertainment Corporation (NYSE:FUN) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. When a caller mentioned that they wish to start a position in the stock for their kids’ portfolio, Cramer commented:

I think it’s too dicey. I think it’s too dicey… I don’t want to do that. I mean, I think we have so many real estate investment trusts that are better. I think Six Flags is the kind of thing that could make it so that your kids sour on stocks. We don’t want them to do that. I have so many stocks I talk about in How to Make Money in Any Market, or of course, in the club. I’m not trying to dodge it; there’s just so many that I like. That one. I do not, but I appreciate that you’re looking for something that they might want. I just don’t think that has, that one has too much risk, how about that?

Six Flags Entertainment Corporation (NYSE:FUN) runs a collection of amusement parks, water parks, and resort properties.

2. NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Cramer noted that he remains a “believer” in the company, as he stated:

This company just had a very successful COMPUTEX festival in Taiwan with CEO Jensen Huang at the top of his game, talking about how his Vera Rubin chips are so fantastic, and they have brought acceptance already. It was a very compelling story, and you know, I remain a believer in NVIDIA, but when I look at the stock, the big six need to sell, I’m betting most of the buyers will also own the stock of NVIDIA. If you love the data center story, right, you love NVIDIA. It’s at the heart of it. Jensen’s sticking by his mantra: companies that buy his wares will make money with them. Of course, his wares have to be put in these gigantic warehouses full of servers, and they need a lot of power and a lot of money. But the whole thing could take years. It’s a huge build-out.

So the most natural source of funds for these deals isn’t a Chevron or a JPMorgan or a Walmart or a Lilly or maybe even an Apple. Sellers will most likely hit Microsoft and Amazon, anticipating deals where they might be able to buy the stock back. And once again, I hope they don’t try to raise that money. I really wish they could just come out and say they won’t, but that’s a tough thing to do. Really, though, the buyers will raise money by selling NVIDIA. I am deeply concerned that it’ll become known as a market donor, a source of funds for those who want to buy these new companies and don’t have the capital to do so. I hope NVIDIA gets a chance to buy back so much stock that it’ll be great.

But you know what? It’s going to be a little difficult right now. That’s why I believe NVIDIA stock was down so hideously today, down eight bucks, 3.62%. It’s just too easy to sell… Right now, NVIDIA’s looking like the biggest piggy bank in the world. While it’s not going to be empty, and of course, it does have $5.2 trillion of other people’s money as its market cap, you gotta expect some withdrawals, even as I think the story is excellent. We own NVIDIA for the Charitable Trust. I have total faith in AI as the fourth industrial revolution. I have total faith in Jensen Huang. I’ll try to own it through… deals, but I have no illusions; it’s going to be a tough time for shareholders.

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.

1. Alphabet Inc. (NASDAQ:GOOGL)

Alphabet Inc. (NASDAQ:GOOGL) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Cramer commented on the company raising money for the data center build-out, as he said:

Now, we should be heartened by what happened to the stock of Alphabet today. They were able to raise some $45 billion out of $85 billion that they wanted to raise totally, pretty much in a snap, and the stock even traded up briefly after the pricing. Perhaps that’s because Berkshire Hathaway bought $10 billion worth, good imprimatur, even if it’s the Greg Abel Berkshire and not the Warren Buffett version. I think Goldman Sachs did a remarkable job placing that deal. Point is, Alphabet could raise serious money and look at the action in the stock… you know, barely notice. It was the first though, in the shoot for these companies. That was a really smart move.

Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play. Cramer mentioned the company during the June 1 episode and commented:

I saw that Amazon and Alphabet were pointedly absent among the winners, that’s right, although Jensen did mention that Alphabet uses some of their most advanced products. Alphabet, by the way, announced, after the close, it’s going to raise an astounding $80 billion in equity with Berkshire Hathaway agreeing to buy $10 billion of that in a private placement deal. Amazon stock’s down, along with that, by the way. Jensen’s not mentioning much about Amazon and Alphabet is important because they have their own lines of chips, which Jensen continues to challenge, but neither feels the need to defend itself. That’s a debate I’ve thrust myself into, saying that you need to be in all three companies because the opportunity’s so great. That’s right. I’m not saying either/or; I like them all.

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