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Was Jim Cramer Right About Palantir Technologies Inc. (PLTR)?

We recently published a list of Was Jim Cramer Right About These 9 Stocks?. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other stocks that Jim Cramer discusses.

When asked about Palantir Technologies Inc. (NASDAQ:PLTR), Cramer surprised viewers by walking back his previous support. He said he could no longer recommend the stock due to a lack of clarity around the business model.

“I think here’s the problem… I know that the back end is good… It’s very tough to understand what they really do for the government. So therefore I am no longer going to say that that’s a stock to own. I can’t figure out what they do.”

Cramer’s call to drop Palantir was clearly wrong as the stock surged +524.62% since.

Palantir Technologies Inc. (NASDAQ:PLTR) develops big data analytics platforms used by government agencies and enterprises for intelligence, defense, and operational decision-making.

However, Cramer recently recommended the stock as one of the riskiest ones he would recommend a baby with $1000 to buy. Here are his comments from June 3:

“When you give money to a baby, what you’re really doing is investing in long-dated assets that can compound over time. Truly amounts to something by the time the kid turns, I don’t know, even 18. So what should the baby do with her money? Well, I just have a plan. We need this baby to take risk, but we also need her to be diversified. I know that the prevailing money management orthodoxy is to go all in on index funds because the experts don’t believe you’re smart enough to handle your own money. But the truth is that in this case, you can… split the baby’s account.

A software engineer intently typing code into a laptop with multiple screens in an office.

You want to put $500 in the Nasdaq 100 to get diversified exposure, and this one does skew toward tech, I don’t mind that, and then you want to pick five stocks for the other 500. I prefer the first one to be risky. You could take a Palantir, ridiculously expensive stock, consulting company uses AI to conquer organizations, show them how to become more efficient.”

Overall, PLTR ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of PLTR as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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