In this article, we will look at 5 Stocks on Jim Cramer’s Thoughts on 5 Stocks: Amazon, AMD, and Big Tech’s AI Spending. Please visit Jim Cramer’s Thoughts on 16 Stocks: Arista, Taiwan Semi, and Big Tech’s AI Spending, if you’d like to see the extended list and methodology behind it.
5. CVS Health Corporation (NYSE:CVS)
CVS Health Corporation (NYSE:CVS) is one of the stocks Jim Cramer shared his thoughts on as he discussed Big Tech’s AI spending. Cramer discussed the company’s “great” quarter during the episode, as he said:
In Friday night’s game plan, I told you to expect a great quarter from CVS Health, and that’s exactly what we got this very morning. CVS also owns Aetna, a huge health insurance company, and Caremark, the number one pharmacy benefit manager. Today, they reported a magnificent 39 cent earnings beat of $2.18 basis with higher than expected revenue, and management raised their full year forecast pretty substantially. As a result, the stock shot up 7.7% today, reaching a three-year high… The stock went up a lot, but the earnings went up, so it’s not more expensive. I would argue that it’s cheaper.
CVS Health Corporation (NYSE:CVS) provides healthcare solutions through insurance, pharmacy benefit management, and retail pharmacy services.
4. Salesforce, Inc. (NYSE:CRM)
Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer shared his thoughts on as he discussed Big Tech’s AI spending. When a caller asked about the stock during the episode, Cramer said:
Okay, CRM’s very tough. It’s one of my smallest positions. It’s tough because the market hates software, whether it be Palantir, whether it be ServiceNow, whether it be Salesforce, whether it be Workday. It doesn’t matter. It hates Adobe. It hates software so much that it even has gotten to Microsoft. I’m not going to push anything that’s software.
Salesforce, Inc. (NYSE:CRM) provides CRM-focused tools that help businesses manage customer interactions, use AI agents, analyze data, collaborate, and run marketing, commerce, and field service operations. During the April 20 episode, when a caller noted that they are close to taking out their cost basis and sought Cramer’s advice on whether they should trim their position, he responded:
Okay, we have a small position for my Charitable Trust. There was an interesting article today in the Journal about how the good things that, two things that Marc Benioff sees. We’re holding it. We think that… eventually, it’s a long-term position because I think that what Marc’s talking about is stuff that will happen by 2030. If you can wait that long, there’s no need to do anything. But I think that the stock is putting in a bottom here because it’s incredibly cheap. I would not sell it at these prices.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks Jim Cramer shared his thoughts on as he discussed Big Tech’s AI spending. Cramer noted how the analyst downgrade of the stock was wrong, as he stated:
In November, she (CEO, Lisa Su) thought that her CPU market would grow at about an 18% clip. Turns out, here we are in May, it’s growing at 35%. That’s AMD’s core business. So, that stock’s not going to want to, they’re not going to take weeks or months for AMD stock to go higher. It’s going to happen now. Hey, speaking of AMD, which shot up more than 18% today, there was a piece of research that came out the day before this extraordinary quarter, a downgrade from a Buy to a Hold by a prominent investment house. That’s right, Buy to Hold, AMD.
I said on air, I told you I thought it was fanciful and would be wrong. In the meantime, I’m sure it scared a lot of people out of the stock because it came out right on the eve of the quarter. When an analyst downgrades right before earnings, people assume they must know something. This time, that was very wrong. Very first sentence in the piece was about as wrong as you can get, “First quarter results and second quarter guidance to be in line with our estimates and consensus, as possible upside is limited.”
Oh man… In fact, AMD blew away the estimates, which is why the stock jumped so high. Their next point, 2026 server CPU upside is capped due to foundry capacity constraints. Okay, I asked CEO Lisa Su directly about this issue. She told me it’s simply not a problem, stop worrying about it. I felt stupid even asking. Finally, the piece suggested that AMD had already been rerated, meaning that the big buyers have already pushed the stock up aggressively, so there isn’t enough juice left to keep it running. Once again, dead wrong. Throughout this entire magnificent rally in AMD and other stocks that are part of the AI revolution, you had to do the opposite of what this analyst said.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures processors, graphics cards, and AI chips for computers, servers, and gaming systems. Some of the company’s products include Ryzen and Radeon.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer shared his thoughts on as he discussed Big Tech’s AI spending. Cramer maintained a positive view of the company, as he commented:
Go back to what we learned from Amazon on Monday on the show. The age of compute domination based on AI is already well underway. The guest this morning was begging for a brick. He had it all backward. See, they, meaning big time paying potential customers, are already here, and unless you spend the money to build the infrastructure, they’ll go somewhere else. Amazon Web Services is racking up big client wins at an accelerating pace because it’s committed tens of billions of dollars to get the right plant and equipment in place because it spent. Not in spite of it, because of it. Amazon is winning, and it’s winning big.
That’s an incredibly important thing when you have companies like Anthropic or OpenAI or Meta or TikTok or so many other key clients making decisions about where they should go, which web service should they use. If you don’t build the stadium, they’re going to go elsewhere, and you leave a lot of money on the table. CEO Andy Jassy made it clear that there could be an existential problem if Amazon doesn’t spend enough on infrastructure, doesn’t. Unless you build it, they won’t come to you… We’re now at the point where if Amazon doesn’t put money in these, their numbers actually have to go down, not up, because that business and its billions of dollars in payments will go to Alphabet or Microsoft.
Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.
1. Sandisk Corporation (NASDAQ:SNDK)
Sandisk Corporation (NASDAQ:SNDK) is one of the stocks Jim Cramer shared his thoughts on as he discussed Big Tech’s AI spending. Cramer mentioned the stock during the episode and said:
Right now, I think some people are getting the message at last that the computing AI revolution represents perhaps the greatest single trend of our lifetimes. Yet all I ever hear is people trying to talk you out of participating in this Manna from heaven machine. It’s too hard to stick with the winners long enough to make yourself rich because the critics always talk about how ephemeral the moves are, how dangerous they can be, or how much you’re going to lose if you don’t trade in and out. Like you can really catch those moves.
I say, no way. Consider this: If you put 10 grand into NVIDIA a decade ago, it’d be worth roughly, I don’t know, $2.4 million. How about that? But who had the fortitude to stick with this one for an entire decade? Sandisk, Western Digital, Micron, they’re all making you so much money, so was the… AMD, 66 points today. Yet there’s a whole cottage industry that exists just to scare you out of these winners. Today, it was the discussion of the gains in the data center stocks and how ephemeral they’ll be.
Sandisk Corporation (NASDAQ:SNDK) sells NAND flash-based storage solutions, including solid-state drives, embedded storage, removable cards, and USB drives.
While we acknowledge the potential of SNDK 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 SNDK and that has 100x upside potential, check out our report about the cheapest AI stock.
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