On Thursday, Mad Money host Jim Cramer addressed the U.S. Court of International Trade’s decision that struck down most of the tariffs imposed under the Trump administration.
“Maybe no one wants tariffs on either side of the table except the president of the United States.”
READ ALSO: 8 Stocks on Jim Cramer’s Radar and Jim Cramer Put These 14 Stocks Under the Microscope.
Discussing how the market initially reacted, Cramer explained that when the panel of federal judges declared the majority of this year’s tariffs to be unlawful, S&P futures surged overnight. However, that enthusiasm faded quickly after the White House responded by signaling that tariffs would still be enforced through other means.
Cramer pointed out that later in the afternoon, a Federal Appeals Court issued a stay on the original ruling. As per Cramer, the reversal was the reason the market gave up its earlier gains. He emphasized that while he is typically in favor of tariffs in principle, he views them as a necessary evil. What concerns him is not the concept itself but how tariffs are implemented. He warned against a rushed or chaotic approach and called instead for a method that is more deliberate and carefully thought out.
“Here’s the bottom line: Even if you believe in fair trade, not free trade as I do, you have to wonder how we’re going to get any meaningful deals now that our trading partners know the courts might invalidate the whole tariff agenda. In that sense, but only in that sense, maybe the judiciary shooting down the tariffs is the easiest way out of this nightmare.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 29. We listed the stocks in ascending order of their hedge fund sentiment as of the first quarter of 2025, which was taken from Insider Monkey’s database of 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer’s Thoughts on These 10 Stocks
10. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 13
During the lightning round, a caller asked about D-Wave Quantum Inc. (NYSE:QBTS), and Cramer commented:
“Alright, I’m going to tell you something good. I think of the ones that are out there, this is the best, okay? How’s that? This is the best. And if they got any good news beyond what they have, the stock probably goes to 25. There we go.”
D-Wave Quantum (NYSE:QBTS) provides quantum computing systems, software, and cloud-based services designed to solve complex problems using both quantum and classical computing. The company also offers tools, training, and support to help businesses develop practical quantum applications. Earlier in January, whilst talking about the company, Cramer commented:
“I am wary of D-Wave Quantum, a $2.2 billion company with $9 million in revenues over the last 12 months and very big losses.”
9. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 17
A caller asked at what point Cramer would suggest adding to their position in BigBear.ai Holdings, Inc. (NYSE:BBAI) and at what increments. Here’s what Cramer had to say in response:
“I’m going to deviate. I’m going to suggest a stock that I think is better, that has more hype to it, that has more pizazz, that everybody loves. I’m going to suggest Palantir… And I happen to think that Alex Karp will come out and he’ll say something really great and he’ll announce a big deal and you’ll make 10 points because that’s the way Palantir rolls.”
BigBear.ai (NYSE:BBAI) provides AI-powered decision intelligence tools that support national security, supply chains, digital identity, and biometrics. The company also focuses on data processing, machine learning, predictive modeling, and visual analytics. It is worth noting that in February, Cramer made a similar comment when he was asked about the company, and he said:
“No, no, you got to go with Palantir. Palantir is not done. This guy is amazing, Karp. I mean, I can’t say enough good about them other than the fact that everybody else is saying it… so you don’t really need me. That’s the one to be in.”
8. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 31
A caller asked if it is a good time to buy The Wendy’s Company (NASDAQ:WEN) shares, seeing that the stock has declined recently. In response, Cramer said:
“No, we are best of breed operators here. That’s who we are. We buy best of breed, and that means we can buy McDonald’s if you want a substitute for Wendy’s, which I have not liked for a very, very long time. I have said, get out of Wendy’s. I’m reiterating my get out of Wendy’s call.”
Wendy’s (NASDAQ:WEN) operates and franchises quick-service restaurants that specialize in hamburgers. The company is also engaged in real estate projects and manages property leasing. On May 20, when Cramer was asked about the company, he remarked:
“Well, I’m going to go against you because they cut it, okay? And you know what? Once you, once a dividend gets cut, I don’t then go seeking to see if they’re going to… you hope that things are fine now. I didn’t like, that last quarter was not so good, you know. Look, everybody knows that my wife loves Wendy’s. She loves Wendy’s, but that’s not enough to buy the stock, alright?”
7. Biohaven Ltd. (NYSE:BHVN)
Number of Hedge Fund Holders: 37
During the lightning round, a caller asked about Biohaven Ltd. (NYSE:BHVN), and Cramer commented:
“Alright, Biohaven had an analyst day the other day, and it was, you know, people didn’t get excited about it. Now, in full disclosure, I do have a personal deal with Biohaven, and I don’t talk about it much because it’s not been disclosed, but I am surprised this stock is all the way down here. Vlad Coric is really good. I think that this is a buy, but you could say, hey Cramer, you’re biased, you got a deal with them. But I’m just telling you that’s how I feel, or else I wouldn’t have a deal with them.”
Biohaven (NYSE:BHVN) works on creating and advancing treatments in the fields of immunology, neuroscience, and cancer. On April 22, Cramer was asked about the company, and he said:
“Alright, first, in pure disclosure, Biohaven, I’m working with them. They’ve bought a drug from me, that I made for me, and a terrific guy, Larry Newman, Dr. Newman, to help solve tinnitus so I always want to tell people that. The stock at $21, I think, therefore, is too cheap. But you might say, oh, that’s just Jim talking because he sold his drug to them. But no, I think the stock is very cheap, and Vlad Coric, who’s the CEO, I think, is really terrific. So I would be a buyer of the stock.”
6. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 44
Highlighting its $9.5 million revenue and 31% in gross margins, a caller inquired about DICK’S Sporting Goods, Inc. (NYSE:DKS). In response, Cramer remarked:
“Oh, I like DICK’S very much and you know a lot of people, that’s both Ed Stack but don’t forget Lauren Hobart. Lauren Hobart as CEO is fantastic, a lot of people think that they stubbed their toe when they bought Foot Locker. I’m going to say the opposite. I’m going to say that they may have stubbed their toe, but this stock is so much down. It was at 254, now it’s at 181. It more than reflects [that] they can write off Foot Locker right now, and frankly, yeah, of course, they don’t need to, it would still work out. Buy DICK’S Sporting Goods.”
DICK’S (NYSE:DKS) sells a wide range of sporting goods, apparel, footwear, and accessories through various retail formats and digital platforms. The company also offers specialty stores and a mobile app that supports youth sports activities.
5. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Number of Hedge Fund Holders: 51
Answering a caller’s query about IDEXX Laboratories, Inc. (NASDAQ:IDXX) during the lightning round, Cramer said:
“Oh, IDEXX. All right, look, this one’s had too big a run. I’m not there for it. I’m sorry, 42 times earnings is a lot to pay for that kind of company. I’m not, I just can’t get my arms around it.”
IDEXX Laboratories (NASDAQ:IDXX) develops and supplies diagnostic tools and services used in animal health, food production, and water quality testing. Baron Focused Growth Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q1 2025 investor letter:
“The performance of many stocks in the Health Care sector can change quickly due to exogenous events or binary outcomes (e.g., biotechnology and pharmaceuticals). As a result, we do not invest a large amount in these stocks in this focused portfolio. In Health Care, we invest in competitively advantaged companies that are leaders in their industries such as IDEXX Laboratories, Inc. (NASDAQ:IDXX), the leading provider of diagnostics to the veterinary industry and who is benefiting from the increase in pets that people acquired during the COVID pandemic, especially as these pets age. The Fund is further diversified by investments in businesses at different stages of growth and development.”
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 65
A caller asked Cramer’s thoughts on Verizon Communications Inc. (NYSE:VZ), and he replied:
“No, that’s fine… The dividend, 6% is good. They’re doing better… I gotta put it like this way, Verizon, not as bad as it used to be. I mean that’s not enough for me, but that’s kind of enough for them. Hey, we’re not so bad, that’s a good slogan for them. Hey Verizon, we’re not so bad. I like that.”
Verizon (NYSE:VZ) delivers a broad range of communications, technology, and entertainment services and products to individuals, businesses, and government clients. The company provides wireless and wireline services, broadband, connected devices, and network solutions. In April, discussing the turbulent market, Cramer said:
“So what made this list so far? Right now there’s peace among the phone companies. The big price war seems to be a thing of the past. That means you can own both Verizon and AT&T. Both have good yields. Both are reporting better-than-expected earnings. They’re worth owning because their businesses have very little cyclicality. So that’s the paradigm, okay?”
3. AutoZone, Inc. (NYSE:AZO)
Number of Hedge Fund Holders: 67
When a caller expressed that they are thinking of buying AutoZone, Inc. (NYSE:AZO) shares, Cramer stated:
“No, you’re not thinking of buying, you’re going to buy. This has the single best buyback. The quarter was very good. I am actually surprised that the stock isn’t up even more. It sells at only 24 times earnings. It’s consistent. They bought back half the float. You have a winner in AutoZone.”
AutoZone (NYSE:AZO) offers various automotive replacement parts and accessories. The company’s products cover hard parts, maintenance items, and non-automotive goods. Artisan Partners stated the following regarding AutoZone, Inc. (NYSE:AZO) in its Q1 2025 investor letter:
“Among our top Q1 contributors were Spotify, Ascendis and AutoZone, Inc. (NYSE:AZO). AutoZone is a leading aftermarket auto parts retailer serving both the retail (“do-it-yourself”) and commercial (“do-it-for-me”) markets. This industry has historically grown steadily due to an aging fleet of cars and increased miles driven. These businesses generate attractive financials based on their logistics architecture and distribution scale. We believe AutoZone’s business has the potential to accelerate, driven by opening more “megahub” locations (stores that can carry a large assortment of products and are close to commercial locations), shorter delivery times and international expansion. In the recent quarter, we started to see evidence that commercial sales growth has been accelerating. In addition, we think the stock is poised to outperform in the current macro environment based on the non discretionary nature of used car auto parts and the company’s likely ability to pass through price increases related to tariffs.”
2. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 81
While Cramer said that he sees the possibility of NIKE, Inc. (NYSE:NKE) making a comeback, he emphasized that it would take time.
“When Nike last reported in March, the results were solid enough, but management also hit us with a pretty dour outlook, talking about a revenue decline in the low to mid-teens for the current quarter, wow, with a 400, 500 basis point decline in gross margins. Oh man, that’s terrible…
I’m conflicted on Nike. On the positive side, the new CEO has a clear strategic plan to turn things around by focusing on running, basketball, football, training, and sportswear…
I simply think that the stock is more de-risked than it’s been in quite some time after two consecutive kitchen sink quarters where management did everything they could to reset expectations… All that said, while there are real positives here, including indications that China’s actually stronger than you would expect, I find it hard to get too bullish on Nike because this brand just ain’t what it used to be. In particular, I worry about the competition in athletic footwear, which has long been Nike’s bread and butter… It also didn’t help that Nike got pretty aggressive with its pricing…
So here’s where I come down on Nike: I believe it can mount a comeback, but I also think that a meaningful complete turnaround could take a longer time than expected. If you’re tempted to play a turnaround here, and I don’t blame you, I would start with a small position. That way, if something else goes wrong, you can buy more into weakness, pyramid style, or you can just cut your losses. And if Nike reports a good quarter with healthy guidance next month, well, you’ll get a chance to capture some upside.
The bottom line: I am optimistic that the worst is indeed behind Nike, or at least will be soon. And I think there’s a good chance for a comeback, especially with a seasoned hands-on Nike veteran like Elliott Hill at the helm. That said, I don’t have a ton of conviction in the turn happening quickly, so I’d advise you to start slowly with a small position and only buy more if Nike gives you a good reason to pull the trigger.”
NIKE (NYSE:NKE) develops, manufactures, promotes, and sells athletic shoes, clothing, gear, and related services. The company makes products tailored to various sports.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) was mentioned during the episode, and here’s what Cramer had to say:
“Currently, NVIDIA makes the most sophisticated chips in the world, and until a few years ago, it had 95% of the Chinese market, giving potential Chinese rivals zero room to compete. Now that was a pretty great situation, but our nation’s interests in China have totally diverged under Trump… Last night, after NVIDIA reported one of the best quarters I’ve ever seen, CEO Jensen Huang made a plea on this show to keep doing business with China, both to maintain U.S. semiconductor supremacy and to keep the profits flowing…
He said that we act like China can’t build the highest-end chips themselves when we know they’re doing so, including DeepSeek’s new semis that were just announced. If we sell our chips to China, he says we can regain our supremacy, but if NVIDIA can’t do that business, it’s effectively a huge subsidy for the Chinese chip makers. Hmm, look, I’m a hardliner on China, but I see the point… NVIDIA could cede its crown to China very quickly if it isn’t allowed to sell a lot of chips there, returning a lot of the profits from that $50 billion in sales to the U.S. to build more capacity here. I just don’t know if President Trump cares because from his latest actions, it feels like we’re just a few years away from a total shutdown in relations with China…
Fortunately, there’s still a ton of opportunity for NVIDIA outside of China because its chips are that great. To me, though, the president’s in no mood for any of our companies to do more business in China than they have to. I think that’s a mistake when it comes to semiconductors, but right now, I fear that’s exactly what’s going to happen.”
NVIDIA (NASDAQ:NVDA) creates high-performance computing tools and software used in graphics, artificial intelligence, and networking. The company’s technology is used in areas like gaming, data centers, self-driving cars, robotics, and business AI systems.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center