We just published an article with the title Jim Cramer's Bold Predictions About These 15 AI Stocks.In this article, we will look at where Apple Inc. (NASDAQ:AAPL) is up against the other AI stocks that Jim Cramer talked about.
As trading in 2024 draws to a close, major stock market indices have had a positive run despite mixed performance across sectors. The flagship S&P index is up 26% year to date and the broader NASDAQ index has gained 33.56%. On top of this, the NASDAQ top 100 stock index rose 29.8%, which reinforces the conclusion that technology stocks will drive the stock market recovery in 2024. For more evidence, consider the performance of the Dow. A stock index that tracks industries across the US economy is up 14% YTD, making it the worst-performing index of all mentioned.
However, even within tech, not all stocks have performed equally well. For example, consider the performance of two stocks. Both of these are semiconductor companies. The first, ranked in the area 3rd on our list of Jim Cramer's bearish tech calls is America's largest manufacturer of memory chips. Second, ranked 1 st On the same list is Wall Street's AI darling. The two stocks have gained 7.64% and 184.60% year to date, so even though they are both technology companies, their share price returns are very different due to the firms' varying exposure to artificial intelligence.
But even if AI takes over the stock market in 2024, other factors continue to influence stock performance. Continuing our example of GPU designer stocks, the stock fell 1.1% on the day the Federal Reserve cut interest rates but targeted two cuts in 2024 instead of the previous four. Shares fell despite the company enjoying the widest moat in the AI industry. On the same day, the flagship S&P and the broader NASDAQ indexes shed 2.9% and 3.6%, respectively. After the year-end sell-off on Friday, neither index has returned to pre-Fed announcement levels.
Cramer, for his part, had predicted that markets may not find it easy to recoup all losses following the Fed's announcement. Speaking on CNBC's Squawk on the street the day after the Fed's decision, the manager shared that “Bitcoin speculation, after nuclear power speculation, after quantum computing speculation” baked into the markets ahead of the announcement. Commenting on quantum computing in particular, Cramer mentioned one quantum computing stock and wondered if the industry is all hype and nothing. “How is that? [the firm] will you go to quantum? When we don't even know what a quantum is?” asked Cramer. “Tokens are immovable, right? Because you know what the token appeal was?” he added.
As AI continues to shape the winners and losers in the stock market, Cramer also shares trading tips for 2025 on the latest episode of Mad Money. He believes that one key fact that everyone should remember when trading is not to be disappointed by strong profits. According to Cramer, while bulls and bears both “make money” in the stock market, it's the pigs that “get slaughtered.” He also elaborated and shared that in his experience “he saw times when stocks went up and up so much that people were drunk on their gains.” However, “it is when you are drunk that you need to remind yourself that you don't want to act like a pig,” believes the host of the television program.
Cramer's second tip for successful investing is to have the ability to hold onto stocks even when the market is tough. He believes that not only is holding a heavy and small stake 'the most difficult part of investing,' but he adds that “taking short-term pains for long-term gains” is at the heart of the market's performance “for a century. .”
Finally, one key factor that few people overlook while trading stocks is hunting for the right entry price. Cramer cautions against buying in bulk. “Do not, under any circumstances, buy your entire position at once,” he emphasizes and adds that “you must not sell everything at once,” either. Instead, Cramer recommends “your shopping, use your orders, try to get the best price over time.”
Our Way
To round out our list of Jim Cramer's bold predictions about stock AI, we scanned the stocks he mentioned on Mad Money and Squawk on the Street since August. After that, we selected stocks with AI computing, hardware, and energy production exposure, and ranked them by the number of hedge funds that had bought the stocks in Q3 2024.
In these stocks, we also mentioned a number of hedge fund investors. Why are we interested in stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the stock picks of the best hedge funds. Our quarterly newsletter strategy picks 14 small and large stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percent. (see more details here).
Analyst Says Apple (AAPL) Stock Is Overvalued Amid 'Slowing' Cycle
A general view of the Apple store, showing the range of products offered by the company.
Number of Hedge Fund Managers in Q3 2024: 158
Date of Cramer's comments: 8-16-24
Performance Since: 13.09%
Apple Inc. (NASDAQ:AAPL) is the world's most valuable technology company. With more than 50% of revenue coming from the iPhone, the smartphone plays an important role in the company's vision. Any gossip surrounding weak sales tends to hurt the stock. By 2024, investors are focused on the potential of Apple Inc. (NASDAQ:AAPL) to grow its loyal customer base to push AI services to the consumer. They also wondered whether the weakness of the Asian economy could cause problems for the company. Apple Inc. (NASDAQ:AAPL) is here in 2024 when it will become the first company in the world to touch an incredible $4 trillion in market capitalization. Here's what Cramer had to say about the firm in August:
“Buffet is the best. So he's the best. People watch his moves and end up repeating the bags and that's why they threw the bags away. That's why they dumped the apple we heard it was based on Apple's supposed weak sales. , however CEO Tim Cook told me last week that sales were strong and I explained in detail why that happened all week until we received a number of good jobless claims on Thursday morning, we labored under the illusion that our economy was moving in a possible global recession because of Japan and the safest thing to do was to sell only 10% the next day. What mattered was that the smart money was coming out of every asset class and we felt like the dopes were actually hanging around. It was the dumb money that was coming out, because Warren Buffett or one of his assistants did We were shocked. Of course we had no idea that he was selling.”
Overall AAPL you are in level 6 in our list of AI stocks that Jim Cramer recently talked about. While we acknowledge AAPL's potential as an investment, our conviction is based on the belief that other AI stocks hold great promise to deliver higher returns and do so within a short period of time. If you're looking for an AI stock that's more promising than AAPL but trades at less than 5 times its earnings, check out our report on The highest number of AIs.
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Disclosure: None. This article was originally published on Insider Monkey.
