Markets are trembling amid the latest AI stock sell-off, which has sent shares of major AI players deep into the red. But CNBC’s Jim Cramer believes the downturn is not another dot-com crash.
Cramer warned that AI stocks could fall further, particularly semiconductor companies whose shares surged during the AI boom. However, he argued that unlike the speculative businesses that collapsed in 2000, many of today’s AI companies are highly profitable.
His biggest concern is smaller AI infrastructure companies such as CoreWeave, Iren and Nebius, which have borrowed heavily to finance data center projects that could face regulatory delays.
Before the election too, Cramer was more careful about tech. On Mad Money, he said the Nasdaq had just closed its worst month since March 2025 and that the week ahead “might be even worse.” He said he wanted to see a “crescendo” before putting more money into tech, which he described as stocks getting crushed in the morning and then rallying on big volume to finish higher. He also warned that anti-data center politicians could stop projects if Democrats took control, and data center stocks fell on Wednesday on fears of tighter AI regulation, Reuters reported.
For this article, we scanned Jim Cramer’s X feed and watched his latest Mad Money programs on CNBC to pick 10 stocks he sounded positive about. We ranked them in ascending order by the number of hedge fund holders at the end of the second quarter of 2026, according to Insider Monkey’s database of 1,006 hedge funds.
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You can click the image below to see the top 5 stocks Jim Cramer is recommending on CNBC and X.
#5 GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 106
GE Vernova (NYSE:GEV) makes gas turbines, wind turbines, and equipment for power grids. On X on Oct. 28, Cramer called the stock “an opportunity.” In another post that day, he wrote that he was trying “to get into the brains of the GE Vernova sellers,” and joked that he was not sure they had any. He sees the selling as a mistake. GE Vernova (NYSE:GEV) is one of the names he is watching closely. Barometer Capital Management pointed to the company’s gas turbine and grid backlog in its second-quarter 2026 investor letter.Check the full letter here.
GE Vernova (NYSE:GEV) trades at about 58.6 times forward earnings, a high multiple that rests on fast growth. On 2027 estimates, the P/E falls to about 32, because analyst consensus has earnings per share growing about 65% next year. The PEG ratio of 1.50 sits almost on the sector median of 1.52, so the price roughly matches the growth.
#4 Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 164
Cramer commented on Advanced Micro Devices (NASDAQ:AMD) on X in a recent post. “AMD so far so good…moving up tech nicely,” he wrote. He likes how the chipmaker’s stock is performing and sees it helping lift the tech sector. Fidelity Dividend Growth Fund said in its second-quarter 2026 investor letter that not owning AMD was its largest relative detractor.See the full letter here.
Advanced Micro Devices (NASDAQ:AMD) recently reported quarterly results with revenue up 45% from a year ago, its best quarter ever. Data center sales nearly doubled, and CEO Lisa Su said on the call that AMD now expects revenue to grow more than 80% in 2027. Bulls say the report shows demand for AI chips is still strong. Chip stocks have fallen because some big cloud companies burned cash in the quarter, but those companies still plan to spend more on data centers in 2027, and that spending becomes revenue for AMD. Management also ties the rise in AMD’s inventory to data center demand.
#3 Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 169
Cramer wants investors to hold Apple (NASDAQ:AAPL) for the long term. “Apple: own it don’t trade it,” he wrote on X on Oct. 16. On Oct. 11, CNBC reported that Cramer called investors selling Apple on the latest iPhone 18 Pro report “stupid as plywood.” On X on Nov. 3, he said the negativity toward Apple, Marvell and Palantir was “pretty thick.” Apple (NASDAQ:AAPL) is one of the stocks he has defended most often in recent weeks. Apple ranks first on our list of the top 10 stocks Cramer and billionaire Ken Fisher like, and we looked at what could drive the stock from here and what could hold it back.See the full analysis here.
Apple (NASDAQ:AAPL) recently reported quarterly results with revenue up 12% from a year ago, a record, and the stock now trades at about 37 times earnings. Bears say the multiple is expensive because it is far above Apple’s long-run average of about 22 times, so even a small miss in growth could pull the price down. Memory chip prices are rising, and Apple guided gross margin lower for the current quarter because of it. Management expects memory costs to keep rising after that. Consumers are also stretched, and AI features may not be enough to make them accept higher prices.
#2 Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 273
Cramer recently called Microsoft (NASDAQ:MSFT) a buy on CNBC’s Mad Money. He said Microsoft is still cash flow positive and has told investors it will stay that way for the rest of the year. Cramer gave credit to CEO Satya Nadella and CFO Amy Hood for keeping spending under control while other big tech companies spent heavily. “They run it like a business, not a science project,” he said. He expects the stock to rise.
“I think the stock of Microsoft, with all of its discipline, is now set to soar,” Cramer said. He then made the call clear. “It’s a buy right here,” he said, CNBC reported. Before the earnings report, the stock was up only about 2% over the past twelve months, and we looked at it as Cramer and Ken Fisher’s AI pick.Click to read the full analysis. Cramer’s charitable trust owns Microsoft (NASDAQ:MSFT).
Microsoft (NASDAQ:MSFT) recently reported quarterly results, and revenue grew 19% from a year ago, above the company’s own guidance. Bulls like it because demand for Azure keeps running ahead of supply. Azure grew 48%, above the 45% management guided to, and the company expects 49% to 50% next quarter. Management said customer demand continues to exceed available supply. Microsoft 365 commercial cloud growth sped up to 17%, and the number of Copilot customers using credits through usage-based billing grew more than 75% in the quarter. Microsoft also reported positive free cash flow while peers like Alphabet and Amazon burned cash, and management says it will stay positive this year.
#1 Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 369
Cramer said Amazon (NASDAQ:AMZN) is a buy on Mad Money on Oct. 29, even though the stock fell sharply after its latest report. Amazon missed estimates on both revenue and earnings, and its fourth quarter outlook disappointed. Cramer said the earnings miss came mostly from higher interest expense after the company sold debt this year. Operating income came in well above estimates, and the 13.9% operating margin was the highest in company history. Amazon Web Services grew 39%, and Cramer said that matters more to him than the low-margin retail business.
“I think that Amazon’s a buy,” he said. He added that he wanted to hear the earnings call before giving his final judgment. Before the report, we looked at Amazon as Cramer and Ken Fisher’s top AI stock pick.Read our analysis here. His charitable trust owns Amazon (NASDAQ:AMZN).
AWS growth has sped up for six straight quarters, and CEO Andy Jassy expects it to stay above 40% in 2027 and 2028. The backlog of signed contracts grew sharply, and the average contract now runs 6.1 years. Amazon also holds a stake in Anthropic, which recently filed for its IPO, so that holding could soon have a public price.
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This article is originally published at Insider Monkey.
