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.”
11. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 25
A caller highlighted Palantir winning government contracts and asked if Cramer thought that C3.ai, Inc. (NYSE:AI) would benefit from this shift. In response, Cramer said:
“Well, I’ll tell you, it keeps losing money. Tom Siebel should not have that keep. He’s the chairman, CEO, founder. There are so many better ones out there. As much as I like Tom, I’m just going to tell you no, go with something that’s even, that’s high. Now, Palantir’s a meme stock and we know that.”
C3.ai (NYSE:AI) builds AI software for businesses and the company’s products include the C3 AI Platform, C3 AI CRM Suite, and C3 Generative AI. In December 2024, discussing the company, Cramer commented:
“As for C3.ai, if you own it, you know what? I’d take something off the table. But for the love of god, don’t try to short the darn thing, it’s got AI in its name — that’s a disaster in this market.”
10. ExlService Holdings, Inc. (NASDAQ:EXLS)
Number of Hedge Fund Holders: 27
During the lightning round, a caller asked about ExlService Holdings, Inc. (NASDAQ:EXLS), and Cramer said:
“I actually like it. I agree with you. It’s one of the fintech stocks that’s been proving to be very solid and, and I like it. I should actually spend, we should have them on the show. They’re doing very well.”
ExlService (NASDAQ:EXLS) provides digital and analytics-driven services using AI, automation, and software platforms to support operations in areas like customer service, healthcare, finance, and supply chain management.
As per ExlService’s (NASDAQ:EXLS) 2025 guidance, revenue is expected to range from $2.035 billion to $2.065 billion, which is a growth of 11% to 12% on a reported basis, and 11% to 13% on a constant currency basis from 2024. The company also reported that adjusted diluted EPS are projected to be between $1.83 and $1.89, an increase of 11% to 14% from the prior year. The guidance is based on current exchange rate assumptions.
9. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 38
Highlighting the trend of homeowners turning to solar to save costs, a caller asked about Sunrun Inc. (NASDAQ:RUN). Here’s what Mad Money’s host had to say:
“No, a bad couple quarters. I can’t be there. And by the way, look, First Solar’s a really good company. It got clubbed the other day. I think the group is very fraught right now. It’s fraught.”
Sunrun (NASDAQ:RUN) offers solar energy solutions for homes, including system design, installation, sales, and maintenance. The company also provides battery storage and works with commercial developers on multi-family and new home projects. When Cramer was asked about the company in April, he noted:
“No, no, this president is not, I’m not saying he’s not a fan of solar, I mean, he doesn’t like the way windmills look. I don’t know how he is like on hydro. Maybe he’s how he is on like sticks rubbing against each other… But I’ll tell you that Sunrun is not in that purview. It’s not in that area that’s a sweet spot. How about that? It’s not a sweet spot. I like that. It’s very, it’s very congenial. Yeah, very congenial.”
8. Churchill Downs Incorporated (NASDAQ:CHDN)
Number of Hedge Fund Holders: 41
Highlighting the company’s increased debt, multiple missed earnings, and stock decline, a caller inquired about Churchill Downs Incorporated (NASDAQ:CHDN), and Cramer replied,“Oh, you know what, that’s kind of, hey, it’s a one-trick pony. I’m not a fan, but I am a fan of yours.”
Churchill Downs (NASDAQ:CHDN) operates various entertainment venues, including live and historical racing tracks, online wagering services, and regional casinos. The company provides horse racing, pari-mutuel wagering, sports betting, and casino gaming, along with a range of related services like food, beverages, and hotel accommodations. On April 25, Stifel analyst Jeffrey Stantial lowered the price target on CHDN to $130 from $142 while maintaining a Buy rating on the stock.
The company reported an in-line Q1, but despite the results being “uneventful,” shares saw a notable decline. It was largely due to concerns over the Kentucky Derby’s weaker-than-expected guidance and comments, which raised fears about diminishing pricing power for Churchill Downs’ (NASDAQ:CHDN) top asset. While the firm acknowledged the negative optics surrounding a miss in Derby-adjusted EBITDA guidance, it believes the market is misinterpreting management’s comments. The analyst views the weaker ticket sales as a more specific issue and sees the decline as a potential buying opportunity.
7. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 44
A caller asked if it was a good idea to buy Snap Inc. (NYSE:SNAP) at the low price the stock is trading at and Cramer replied:
“No, it’s at a low price because it’s doing quite poorly. I’m not stating the obvious, I’m just saying that, normally, if there was something it was doing really well, it was down here, I would say absolutely yes. But I’ve not seen any sign that these guys really have a sense of urgency, so therefore I’m going to say no. I don’t think it represents value.”
Snap (NYSE:SNAP) provides Snapchat, a visual messaging platform. The company also offers Snapchat+, Spectacles, and advertising tools that include augmented reality and image or video-based formats. In March, Cramer suggested that the company might benefit from a new CEO as he said:
“They did too much stock-based compensation. They didn’t get the balance sheet right… I mean, there’s a possibility they make some money. I got an idea for them, new CEO. By the way, there’s no crime in that. You just swallow your pride and you just say, hey, you know what, I’m gonna let someone else do it.”
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
When a caller asked about Super Micro Computer, Inc. (NASDAQ:SMCI) during the episode, here’s what Cramer had to say:
“I’m sick of Super, the not so Super Micro. If you want to be in that space, let’s just go buy Dell. And I gotta tell you, can I just say that if anyone’s going to keep on picking on NVIDIA, I live right here. Come get me, okay, and me and Jensen.”
Super Micro Computer (NASDAQ:SMCI) focuses on creating and manufacturing advanced server and storage hardware built for high-performance use. On March 26, Cramer stated:
“Now what happened in the service side here that was actually difficult was Super Micro. They provide hardware, but they also provide services. They, along with Arista Networks and Broadcom, they were all part of the data center story that people seem to have cooled on.”
5. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 53
A caller inquired if BlackRock, Inc. (NYSE:BLK) was good to buy or add to, and Cramer replied:
“Yeah, I think so. Look, we own it for the Charitable Trust. Candidly, we’re down on it, and I don’t like that when we’re down on the stock, but we are. The stock has declined far more than I thought it would on what was a decent quarter. I agree with you, and I think it should be bought. That said, I’ve been wrong, but I think it should be bought in the long term. I think it’ll be a great position.”
BlackRock (NYSE:BLK) is an investment management company known for providing advisory solutions, risk management, and a broad selection of investment offerings, including mutual funds, ETFs, and hedge funds across different asset categories. Nightview Capital stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q4 2024 investor letter:
“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.
BlackRock, Inc. (NYSE:BLK): Core Opportunity: BlackRock leverages its scale and innovation to lead in asset management, ETFs, and financial technology.
Key Highlights: Massive Scale: AUM exceeds $10.6 trillion, supporting diverse revenue streams.
AI and Sustainability: Investments in AI, data centers, and energy transitions unlock trillions in opportunities.
Financial Strength: Operating income grew 12% YoY, with margin expansion of 160 basis points.
Investment Case: BlackRock’s consistent innovation, strategic partnerships, and shareholder returns position it as a leader in financial evolution. Its mix of growth and stability makes it an attractive long-term investment.”
4. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 80
Highlighting that the company only buys 65% of its products from the USA and is projecting a billion dollars in tariff expenses, a caller inquired about RTX Corporation (NYSE:RTX). Here’s what Cramer had to say:
“Oh my god, you know, you actually nailed the story. First of all, they were very forthcoming about the tariffs. That was right. Second, it is a way for people, for countries to be able to say, listen, I know we have a trade, we have a huge trade surplus with you. We are going to write a check to RTX and get what we need. You are spot on.”
RTX (NYSE:RTX) delivers systems and services used in commercial, defense, and government applications. The company works on aircraft engines, aerospace technologies, and threat detection tools. On April 22, Cramer extensively commented on the company as he said:
“As with GE, RTX had a solid earnings beat for the first quarter and unlike GE, they were able to pair that with a solid revenue beat. Also, like GE, RTX reiterated its full-year forecast, but there was a catch. The company said explicitly that their outlook did not incorporate the impact of the recently enacted tariffs. Did not. Now, there’s a world of difference between these two forecasts, then. Reiterating your guidance without baking into the tariffs is a de facto guide down. On the conference call, management went into detail about the impact of tariffs. They’re talking about a potential $850 million hit to profits from the tariffs already in place.
And then management added that these estimates don’t include secondary tariff-related impacts, such as changes to customer demand. These secondary impacts are also pretty important too. Personally, I like the first quarter numbers from RTX, and I applaud management for their transparency. But boy, oh boy, the market did not agree with that. RTX saw its stock fall $12 and 37 cents, nearly 10%, in response to the quarter this morning. Wow. I gotta tell you, I’m all over this one. I think there’s more to it than that.”
3. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 93
When Cramer was asked about Union Pacific Corporation (NYSE:UNP) during the lighting round, he said:
“Okay, people feel that this stock is right in the cross hairs of the tariffs, that they’re going to hurt, get hurt more than anybody else. I want to buy the stock right here. At $214, I would start buying, the next buy would be at $204. Then maybe get some at $194. Build a good basis. Start with small and build up in a pyramid. That’s what I feel about Union Pacific. I’m looking at it myself. I like this level.”
Union Pacific (NYSE:UNP) moves a wide variety of freight, including agricultural products, chemicals, metals, petroleum, and vehicles. It supports industries like farming, construction, and manufacturing. Appearing on Squawk on the Street on April 25, Cramer commented:
[UNP] “Well you gotta remember, it takes three, two to three weeks, before you’ll start seeing it. So yeah, Liberation Day, right, which shocked people, then you have to take three weeks, and then after that, it’s like wow, I don’t know. I don’t know what I could do, people are talking about selling Union Pacific off of it.”
2. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 110
ServiceNow, Inc. (NYSE:NOW) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“I would say ServiceNow works. I think Bill McDermott, you know, Bill McDermott’s like one of these great jockeys that I’m talking about. He has turned that company around. He has done great things there, and he is the leader in AI. I think McDermott, I think ServiceNow. Folks, sometimes you have to keep the faith in leaders of great companies.”
ServiceNow (NYSE:NOW) offers digital tools that help companies automate tasks. The company’s products are designed to improve how organizations manage their daily operations. Ithaka Group stated the following regarding the company in its Q1 2025 investor letter:
“Founded in 2004, ServiceNow, Inc. (NYSE:NOW) has become the leading provider of cloud-based software solutions that defi ne, structure, manage and automate workflow services for global enterprises. ServiceNow pioneered the use of the cloud to deliver IT service management (“ITSM”) applications. These applications allow users to manage incidents and to plan new IT projects, provision clouds, manage application performance and build applications themselves. The company has since expanded beyond the ITSM market to provide workflow solutions for IT operations management, customer support, human resources, security operations and other enterprise departments where a patchwork of semi-automated processes have been used with varying success in the past. ServiceNow’s stock fell during the quarter, driven by the announcement that its much anticipated AI Agents offering is going to be offered as a consumption-based model, vs the expected seat-based model. This change will make revenue recognition fall further into the future, as clients can take their time adopting (and therefore paying) for the new product.”
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
A caller inquired if Cramer thought that UnitedHealth Group Incorporated (NYSE:UNH) stock’s current valuation presents a buying opportunity or if there are any underlying issues that investors ought to be cautious of. Here’s what Cramer had to say:
“Okay, it’s going to be under pressure for some time because a lot of companies really, a lot of big pension funds and mutual fund managers, thought everything was perfect. But I am going to say today at $400, I would indeed start a position. I have been very negative on UnitedHealth from 630 down to this caller right here. I would start a position at 400 bucks. That’s a big change for me.”
UnitedHealth (NYSE:UNH) is a healthcare company that offers health benefit plans, delivers care services, manages pharmacy programs, and runs health management initiatives. The company also provides software, consulting services, and data solutions to organizations within the healthcare sector.
While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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