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The Home Depot, Inc. (HD) Fell Because Of Sherwin-Williams, Says Jim Cramer

We recently published 11 Stocks That Jim Cramer Recently Talked About. The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer recently discussed.

The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retailers in America. Its shares have lost 2.9% year-to-date due to persistent sluggishness in the housing market. In his previous remarks about the firm, Cramer also attributed some of the weakness surrounding The Home Depot, Inc. (NYSE:HD) to a slow gardening season. This time, he discussed the impact of Sherwin-Williams’ bearish outlook for H2 2025 on the shares:

“Home Depot’s up seven and my charitable trust owns that. And now I look at that and I think that’s because of Horton being up and Lennar being up and Pulte being up. But that’s not what references, it’s Sherwin Williams. And that means that maybe it’s too high.”

In an earlier appearance, the CNBC TV host commented on The Home Depot, Inc. (NYSE:HD)’s link to the housing market:

“Home Depot, now here’s a company that’s seen as being synonymous with the housing market, and the housing market stinks. Well, not enough homes being sold, gotta be bad, right? Well, wait a second. This stock’s now been in the doghouse for ages. It’s also why we’ve been buying for the Charitable Trust. Like Costco, people don’t seem to want to buy Home Depot unless it’s within spitting distance of its highs. They want to buy Home Depot when it’s hot. I want to buy Home Depot when it’s not.

First, let’s deal with this big misperception about Home Depot. It’s not just about home sales. It’s geared to remodeling and renovation. That’s why the despot just spent $18.5 billion to buy a company called SRS Distribution last year that helps contractors with building materials, mainly roofing and pool supplies, and landscaping.

Home decor

They just spent $5.5 billion on GMS, a drywall, steel framing, and ceiling products distributor. In other words, in the last year, Home Depot’s only improved its position in remodel and renovation while it waits for the housing market to come back. Now, why does this matter? Because you don’t get many chances to buy the stock of Home Depot at a considerable discount to its high. People would rather buy Home Depot at $439, its high from last year, than $373, where it’s trading now. I look at it like this: How often can you buy a quality franchise like Home Depot when it’s not running, when it’s not near its high? Not often.”

While we acknowledge the risk and potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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