Jim Cramer is Bullish on These 10 Stocks

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#4 Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors: 101

A caller on the Oct. 15 lightning round asked whether to keep a long-held Exxon position. Jim Cramer said Exxon is good but “I think Chevron’s better,” and told the caller to make the swap unless there are tax implications. “CVX is a better way to go,” he said. 101 hedge funds held Chevron at the end of the second quarter, down slightly from 103 in the first quarter and above the 96 that held Exxon. Billionaires have been buying Chevron, too. Click to see who.

Chevron Corporation has a strong near-term earnings outlook as elevated oil prices and rising production volumes support profitability. The company is benefiting from increased output in Guyana, Kazakhstan, and the Permian Basin, while its acquisition of Hess has strengthened its exposure to some of the world’s most promising oil reserves. Higher crude prices could generate substantial free cash flow, giving Chevron more flexibility to increase dividends and share repurchases.

However, the biggest risk is that the current oil price rally may not last. Much of the recent strength in crude prices reflects geopolitical tensions involving Iran and disruptions around the Strait of Hormuz. If the conflict ends and oil shipments normalize, the geopolitical risk premium could disappear, pushing crude prices sharply lower. That would put pressure on Chevron’s earnings, free cash flow, and ability to accelerate shareholder returns.

#3 Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Investors: 105

Coherent makes lasers and the optical components that move data through fiber, including parts used in data centers. A caller on Jim Cramer’s Oct. 15 lightning round said he had bought the dip in the stock. “Coherent is good, momentum is good,” Cramer told him. He said the market is in the middle of a scare about data center spending, but there is no doubt that fiber will replace copper, a change he said the company will benefit from. 105 hedge funds held Coherent at the end of the second quarter, down from 114 in the first quarter. Cramer has told viewers to buy Coherent on dips before. Click to read that call.

Cramer likes Coherent Corporation (NYSE), but bearish analysts argue that the company’s booming AI-related revenue growth is not translating into strong cash flow. Coherent is benefiting from surging demand for 800G and 1.6T optical transceivers used in AI data centers, but meeting that demand requires substantial investments in manufacturing capacity and inventory. These expenditures are putting pressure on operating cash flow and free cash flow margins. Another concern is profitability. Coherent is selling more finished optical modules, which carry lower gross margins than individual components such as lasers. While the company expects its transition to more efficient 6-inch indium phosphide wafers to reduce costs, execution risks remain. Any delays in expanding production capacity could also hurt revenue growth.

#2 GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Investors: 106

GE Vernova makes the gas turbines and grid equipment that power data centers. “Club members know that I like GEV,” Jim Cramer wrote in a Sept. 30 X post, adding that “you own it for gas turbines.” In January, he said the gas turbine business is now “one of the biggest growth stories in the world” and that GE Vernova has earnings visibility into the 2030s. (Source) 106 hedge funds held GE Vernova at the end of the second quarter, down from 118 in the first quarter. Cramer recently picked GE Vernova as one of two stocks to buy. Click to see the other one.

GE Vernova has a strong position because its turbines are hard to copy, and only three big companies make them worldwide. A new entrant would need huge factories and years of engineering know-how. The company’s products help generate roughly 25% of the world’s electricity, and that installed base brings repeat maintenance and repair work. Power is the largest segment at 51% of revenue, and its orders rose 135% in the second quarter. Electrification, which sells grid equipment to utilities, is the fastest-growing segment, with orders up 93%. Group orders rose 88%, and management has raised its 2026 guidance more than once.

#1 Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Investors: 152

Jim Cramer said in a Sept. 29 X post that Eli Lilly has “tons of powerful news versus Novo on weight loss drugs,” and that the news is “being ignored.” In April, after Novo Nordisk claimed its weight loss pill was better, Cramer said Lilly’s pill is easy to take and that the main thing going for Lilly is that it will not run out of supply, because it spent a fortune on manufacturing. 152 hedge funds held Eli Lilly at the end of the second quarter, up from 132 in the first quarter, the most of any stock on this list. Cramer has talked up Lilly’s weight loss pill for months. Click to see what he said.

Eli Lilly sells Mounjaro and Zepbound, and Lilly itself calls Zepbound the standard of care in weight loss. The company uses its profits to build its own plants, including a new Texas site that will make the active ingredient for its oral drug Foundayo. Many rival drugs are still in Phase 3 trials and need FDA approval, and new competition could take years to reach the market. Lilly also has retatrutide, a weekly shot that helped patients lose up to 28% of their weight in a Phase 3 trial. More than 45% of patients on the highest dose lost 30% of their body weight, and Lilly plans to file with the FDA in the first quarter of 2027. The market is growing fast too. According to Morgan Stanley, the weight-loss drug market is forecast to grow to $190 billion by 2035, with a bull case for reaching $240 billion. Analysts expect Lilly’s earnings per share to grow more than 50% this year and nearly 30% next year.

While we acknowledge the risk and potential of LLY as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than LLY that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

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