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Wells Fargo & Company (WFC): Analyst Downgrade “Makes No Sense,” Says Jim Cramer

We recently published 11 Stocks Jim Cramer Just Discussed As He Shared Why Stocks Are Rising. Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently discussed.

Wells Fargo & Company (NYSE:WFC) is one of the biggest and most controversial banks in America. 2025 has been an important year for the firm as it has finally been able to shake off restrictions levied on it by the Federal Reserve in 2018 after a fake accounts scandal. Wells Fargo & Company (NYSE:WFC)’s shares have gained 16% year-to-date and are up by 33.8% since early April after experiencing a sharp 15.6% drop in April after President Trump’s Liberation Day tariff announcements. In his previous remarks about the bank, Cramer has wondered whether the stock is too cheap and pointed out that Wells Fargo & Company (NYSE:WFC) CEO Charlie Scharf is seeking to gain market share from rivals. This time around, he commented on Raymond James downgrading the stock to Market Perform from Outperform:

“Wells I think is ridiculous. You got 14 times earnings with a final breakout just because it gets to a high. That makes no sense to me.”

Earlier, the CNBC TV host had commented on Wells Fargo & Company (NYSE:WFC)’s valuation:

“Finally, there’s Wells Fargo, another Charitable Trust holding, and a company that’s been on a regulatory winning streak since a month ago when the Fed lifted the asset cap that’s been holding them back for seven years. Wells Fargo announced a 12.5% dividend hike, which brings that yield up to 2.19%…  Bank of America and Wells Fargo are the next cheapest, but they both trade at a little less than 2 times tangible book value, a huge premium to Citi… And look, when you judge the bank stocks on a price-to-earnings basis, you get a similar story… Bank of America and Wells Fargo, 13 and 14 times earnings, respectively…

A team of bankers in suits, discussing the success of the company’s banking products.

Still, with the banks featuring discount multiples compared to the overall market, you know what, I’m not so sure that the good times… necessarily have to end for this group. I think they can continue moving higher. The bottom line: In this environment, I bet the big banks are some of the best investments this year, yet still very inexpensive, at least on earnings versus the rest of the market, have more room to run, maybe much more. As for which ones you should own, well, that’s a personal choice. I’m very happy with Goldman Sachs and Wells Fargo. We own those for the Charitable Trust.”

While we acknowledge the risk and potential of WFC 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 WFC 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

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:

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