Investors are closely watching the artificial intelligence trade amid mounting concerns over massive spending on AI infrastructure, the sustainability of growth and whether companies can generate sufficient returns on their investments. The debate over whether these investments will pay off has intensified as major technology companies pour billions into data centers. Microsoft is among the companies facing pressure to demonstrate returns on its AI investments, as we discussed in our recent detailed analysis.
CNBC’s Jim Cramer remains bullish on the long-term potential of AI but has warned that the industry is losing public confidence as questions grow over its impact on jobs, electricity costs and society.
During a recent episode of CNBC’s Mad Money, Cramer said the narrative surrounding AI had changed dramatically. While technology executives were once praised for creating jobs and investing billions of dollars in new infrastructure, they now face criticism over rising electricity bills, resource consumption and the potential displacement of workers. He also took aim at Anthropic and OpenAI for highlighting the potentially dangerous consequences of their technologies, warning that such messaging could undermine investor and public confidence. Cramer has remained positive on certain AI-related stocks despite these concerns. We recently covered why Cramer and a billionaire investor remain bullish on Meta despite its massive AI spending. Read our full analysis.
“The culture has turned against these people,” Cramer said, referring to the AI industry’s leading figures. “I’m not a doomer. You know, I’m constructive on AI, but the companies have to start telling better stories.” He called on AI companies to demonstrate tangible productivity improvements and explain how their products benefit businesses and consumers rather than allowing fears about the technology to dominate the discussion.
Cramer on Anthropic IPO
Cramer’s comments have gained renewed relevance following Anthropic’s IPO filing on Monday. Discussing the filing during his latest CNBC program, Cramer drew attention to the company’s expanding computing capacity and improving operating margins. He also linked the discussion to Elon Musk’s recent comments about rapidly expanding computing resources, raising questions about how many companies will ultimately be able to compete as the AI industry scales. The discussion comes as major technology companies race to expand their computing infrastructure, with Amazon’s AI investments and cloud growth providing another example of the enormous spending required to compete in the sector. We recently examined whether investors should buy Cramer and Ken Fisher’s top AI stock pick ahead of earnings. Read our latest coverage.
Methodology
To find the stocks, we reviewed Jim Cramer’s recent posts on X and his comments on CNBC, and picked 10 stocks he sounded positive about. We ranked them in ascending order by the number of hedge fund investors at the end of the second quarter of 2026, according to Insider Monkey’s database of 1,006 hedge funds.
#10 V.F. Corporation (NYSE:VFC)
Number of Hedge Fund Investors: 43
V.F. Corporation owns outdoor and lifestyle brands, including The North Face, Vans and Timberland. Jim Cramer wrote in an Oct. 13 X post, “VF ready to roll,” citing a Piper teen survey. During a May episode of Mad Money, he said “VF should be up, not down,” and that the Vans brand is no longer taking the beating it had been.
43 hedge funds held V.F. Corporation at the end of the second quarter, up from 42 in the first quarter. Cramer has talked about the turnaround at VF before. Click to see what he said.
V.F. Corporation is showing signs of a turnaround as its two major brands, The North Face and Timberland, return to growth. The company has also sold Supreme and Dickies to focus on its core brands. Bulls believe stronger sales at The North Face and Timberland, combined with cost reductions, could drive earnings growth.
However, Vans remains a major weakness. Management expects the brand’s revenue to decline by a mid-single-digit percentage in fiscal 2027, although the decline could slow in the second half. Weak demand and the costs of reviving Vans could hurt profitability. VFC also carries a below-investment-grade BB credit rating and has a history of dividend cuts. If Vans fails to recover, the company could struggle to meet its margin targets despite improving performance at its other brands.
#9 Akamai Technologies, Inc. (NASDAQ:AKAM)
Number of Hedge Fund Investors: 62
Akamai runs a global network of servers that speeds up and protects internet traffic, and it is building smaller data centers to run AI models closer to users. Jim Cramer said during an Oct. 1 episode of Mad Money that Akamai is the one content delivery stock he would buy. “I think you can buy that stock right here, right now because it’s cheap,” he said, pointing to a price of less than 16 times that year’s earnings estimates.
He said that at that valuation, buyers are “basically getting” Akamai’s seven-year computing deal with Anthropic, announced Sept. 24, “for free,” and he called the partnership gigantic. The stock gave back its gains after the news, which Cramer called a buying opportunity. 62 hedge funds held Akamai at the end of the second quarter, down from 74 in the first quarter.
Cramer isn’t the only one who likes Akamai. Recently, Raymond James upgraded Akamai Technologies to Strong Buy from Outperform and kept its $170 price target. The upgrade came after last week’s “AI is Dead” trade, which grew out of credit risks and fears of higher rates. Raymond James thinks the selloff hit Akamai harder than most because of its deal with Anthropic, which will boost Akamai’s revenue but needs a large capital commitment. Investors worry about the cost of that capital against the return on it, and about whether AI firms like Anthropic can stay funded to meet their obligations. The pullback gives long-term investors a compelling entry point into Akamai Technologies, Raymond James said in a note.
#8 General Motors Company (NYSE:GM)
Number of Hedge Fund Investors: 75
“I like this GM story very much!!” Jim Cramer wrote in an Oct. 12 X post. He has been positive on the automaker all year. During an April episode of Mad Money, he told a viewer who asked about electric vehicles to “invest in Mary Barra,” whom he called an amazing CEO. He said investors can buy the stock and not worry about whether GM goes electric, because she will handle that.
75 hedge funds held General Motors at the end of the second quarter, down from 77 in the first quarter. Cramer has compared GM with Ford before. Click to see the comparison.
General Motors Company (NYSE) has a strong competitive advantage in the highly profitable North American pickup truck market, where its Chevrolet Silverado and GMC Sierra models together command a 42% share. Bulls argue that the upcoming generation of these trucks, featuring updated designs and more powerful engines, could support higher selling prices and stronger profit margins. The company’s massive $20 billion share repurchase authorization is another potential catalyst, as reducing outstanding shares could boost earnings per share and support the stock price.
However, the bear case centers on rising costs and long-term competitive pressures. Higher prices for steel, copper, logistics, and other components are squeezing profitability, while efforts to shift more production and supply chains to the United States could add significant expenses. Temporary factory shutdowns during the transition to new pickup models could also weigh on near-term earnings. Longer term, growing competition from Chinese automakers and challenges in expanding GM’s electric vehicle business raise questions about its competitive position.
#7 Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Investors: 86
Jim Cramer has held a $250 price target on Palantir for months. In an Oct. 12 X post, he listed the stock among several showing “odd strength” and said it “goes to $250-long-standing target.” On Sept. 17, he wrote that he was “sticking by my $250 target” after interviewing CEO Alex Karp.
On an Oct. 1 episode of Mad Money, he said the target has been “too aggressive so far,” but that he would still buy the stock after its pullback. Click to see how the call has played out.
86 hedge funds held Palantir at the end of the second quarter, down from 96 in the first quarter.
Palantir Technologies is expensive. It trades at a forward P/E of about 122, while the market trades at about 18.7. Analyst consensus has Palantir’s earnings per share growing 116% this year and 46% in fiscal 2027. The market’s earnings grow about 10% a year over the long run. Palantir grows much faster than the market, and it carries more than six times the market’s multiple. Its PEG ratio of 2.28 is about double the sector median of 1.13. If earnings keep growing 46% a year, the P/E falls to about 57 in two years and about 39 in three. That is still about twice the market’s multiple today.
#6 Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Investors: 91
A caller on Jim Cramer’s Oct. 15 lightning round asked whether to sell or double down on Reddit after the market punished the company for losing unprofitable traffic from Google. “I want to buy Reddit,” Cramer said. He called the stock inexpensive, said it is down badly this year, and called it “a great price.” 91 hedge funds held Reddit at the end of the second quarter, up from 70 in the first quarter. Cramer made a similar call in September. Click to see what he said.
What makes Reddit, Inc. (NYSE) stand out among social media giants like Meta Platforms and Snap in the age of artificial intelligence? Some bulls argue that Reddit’s biggest advantage is its enormous collection of authentic human conversations, where millions of users discuss products, share experiences, and seek recommendations. This makes the platform particularly attractive to advertisers looking to reach consumers who are already researching potential purchases.
Reddit is working to turn this advantage into higher advertising revenue. Its AI-powered Max campaigns automate ad targeting, creative selection, and budget allocation, making it easier for businesses to advertise on the platform. According to Reddit’s early testing, these campaigns delivered 17% lower customer acquisition costs and more than 27% additional conversions. The company is also experimenting with shopping features that connect product discussions directly to retailer links, potentially creating another monetization opportunity.
#5 Wells Fargo & Company
Number of Hedge Fund Investors: 94
“Loving Goldman here; thinking WFC overdone,” Jim Cramer wrote in an Oct. 13 X post, suggesting the stock’s recent drop has gone too far. After the big banks reported, he said on air that he was “feeling more bullish” on Wells Fargo and Goldman Sachs for his Charitable Trust. His case is that bank stocks fell after good quarters because investors worry about inflation and rising rates. Any end to the war in Iran would let inflation cool, give the Fed room to back off its rate hikes, and send capital markets bouncing back, he said.
94 hedge funds held Wells Fargo at the end of the second quarter, up from 82 in the first quarter. Cramer has defended Wells Fargo before. Click to read his earlier comments.
Wells Fargo & Company recently reported mixed third-quarter results, beating earnings expectations but missing revenue estimates.
Bears point to stagnant net interest margins and growing sensitivity to interest rates. Higher borrowing costs could pressure profitability, while prolonged elevated rates may weaken loan demand and borrowers’ ability to repay debt. Any deterioration in credit quality could also force Wells Fargo to increase provisions for loan losses. These risks could limit earnings growth despite the bank’s expanding loan portfolio.
#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.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy
Follow Insider Monkey on Google News.
