On Thursday’s episode of Mad Money, Jim Cramer voiced his exasperation over the skepticism surrounding AI infrastructure as he stated that it was never backed by solid evidence to begin with. He expressed frustration that so many investors had been misled into believing that the AI infrastructure boom had somehow stalled.
“Earnings season, it’s a pain in the neck. It’s convoluted stuff coming at you from all different directions. Loss of sleep, just a total time suck and I love it. I love it because it clears things up. The false narratives are exposed. You can go back to playing offense, not defense. And few false narratives have gone as far as this story about the end of data center spending.”
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According to Cramer, the story took root back on January 27th, “DeepSeek Monday,” when a Chinese company said that they developed a generative AI model requiring significantly fewer computing resources than industry leaders. He added:
“All the previously red-hot AI infrastructure stocks were immediately crushed. You know what? They never really recovered.”
Cramer questioned how the doubt could have been spread so easily. He pointed to the media’s role and wondered whether reporters asked the right questions or enough questions at all. He criticized the consistent spotlight given to bearish voices, many of whom had clear financial motives. As per Cramer, some of these commentators failed to disclose that they had short positions across the AI sector. He accused them of putting profits ahead of facts as he noted that too much money was at stake for them to let reality interfere with their narrative. He added:
“I know it may be hard to believe that huge companies with tens of billions of dollars to spend actually keep funneling that money to the data center suppliers… but that’s exactly what’s happening, and I think it’s not too late to own a lot of the members of the complex. Even as I expect that if we wait a few days, the bears will be out again… They just can’t stop trying to make money at your expense.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on April 30 and May 1. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 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 13 Stocks
13. Viemed Healthcare, Inc. (NASDAQ:VMD)
Number of Hedge Fund Holders: 14
Upon a caller’s inquiry about Viemed Healthcare, Inc. (NASDAQ:VMD), Cramer said in response:
“Very interesting. And you know, look, I’m a Resmed guy. I don’t know VieMed well enough, but I’m glad you, look, you’ve done the work. I’ve not. It’s from Lafayette, Louisiana, interesting company.”
Viemed Healthcare (NASDAQ:VMD) provides respiratory care and home medical equipment, including ventilators and oxygen therapy, with services focused on managing conditions like COPD and sleep apnea. It also offers sleep testing and healthcare staffing. As per the company’s full year 2025 guidance, net revenue is projected to fall between $254 million and $265 million. Adjusted EBITDA for the same period is expected to range from $54 million to $58 million.
12. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 17
When a caller inquired about Tempus AI, Inc. (NASDAQ:TEM), here’s what Cramer had to say:
“Yeah, diagnostics with no money being made. We’re not recommending stocks right now that are losing a lot of money because we think this could be a dicey environment, but [could] turn on a dime, that it’s going to go fine right now, but I don’t like companies that aren’t making any money.”
Tempus AI (NASDAQ:TEM) is a healthcare tech company that provides diagnostic tests, molecular profiling, and data analytics. The company builds platforms used for clinical trial matching, research, and data review by healthcare professionals, pharmaceutical companies, and biotech firms. When Cramer was asked about the company back in February, he remarked:
“Really wanna start with Tempus? I would start with Stryker. Let’s, let’s go a little higher end. I think Stryker’s the better one and if you want AI then you can go with Medtronic. Both are better than the one you picked. No offense to yours, but I like mine more.”
