We recently published an article titled Jim Cramer’s Bold Predictions for These 15 Artificial Intelligence Stocks.In this article, we’ll take a look at where Apple (NASDAQ: AAPL ) stands compared to other artificial intelligence stocks Jim Cramer has talked about.
As 2024 trading draws to a close, the major stock indexes are still doing well despite mixed performance across sectors. The flagship S&P is up 26% year to date, while the Nasdaq is up 33.56%. On top of that, the Nasdaq 100 Index rose 29.8%, further confirming the conclusion that technology stocks will drive the stock market’s returns in 2024. For further evidence, consider the performance of the Dow Jones Index. The index tracking various sectors of the U.S. economy has gained 14% so far this year, making it the weakest performer of all.
However, even within the tech sector, not all stocks perform equally well. For example, consider the performance of two stocks. Both companies are semiconductor companies. first place, ranking third place The largest U.S. memory chip maker is among Jim Cramer’s list of bearish tech stocks. Second, ranking first place Also on the same list are Wall Street’s artificial intelligence darlings. The two stocks are up 7.64% and 184.60% year-to-date, respectively, so even though they are both technology companies, their stock price returns differ primarily because of the different levels of investment the two companies have made in artificial intelligence. .
However, while artificial intelligence is supporting stocks in 2024, other factors continue to impact stock performance. Continuing our example of GPU Designer stock, the stock fell 1.1% on the day the Fed cut interest rates, but guided for two rate cuts in 2024 instead of the previous four. The stock price fell despite the company having the widest moat in the artificial intelligence industry. On the same day, the flagship S&P and Nasdaq fell 2.9% and 3.6% respectively. Following the late sell-off last Friday, neither index has fully recovered to levels seen before the Fed’s announcement.
Cramer predicted that the market may not easily reverse all losses after the Fed’s announcement. The day after the Fed’s decision, the host said on CNBC’s Squawk on the Street show that “speculation in Bitcoin is rampant, following speculation about nuclear power, following speculation about quantum computing.” It took the market by storm even before the announcement. Commenting on quantum computing in particular, Cramer mentioned a quantum computing stock and wondered whether the industry was all hype without substance. “How about it [the firm] Go to Quantum? When we don’t even know what quantum is? Because do you know what a fungible token is? he added.
As artificial intelligence continues to influence winners and losers in the stock market, Cramer also shared trading tips for 2025 on a recent episode of Mad Money. He believes that a key fact that everyone needs to remember when trading is not to become disillusioned by strong gains. Cramer believes that although both bulls and shorts “make money” in the stock market, it is the pigs that are “slaughtered.” He elaborated further and shared that in his experience, he has “seen moments where stocks kept rising and rising to the point where people reveled in their gains.” However, the TV presenter believes that “it’s when you’re drunk that you need to remind yourself that you don’t want to behave like a pig”.
Cramer’s second secret to successful investing is having the perseverance to hold on to stocks even when the market is tough. He believes that staying the course is not only “the hardest part of investing,” but adds that “bearing short-term pain in order to achieve long-term gains” is “the core of market performance for a century.”
Finally, a key factor that many people overlook when trading stocks is finding the right entry price. Cramer warned against buying in bulk. “Under no circumstances should you buy the entire position at once,” he stressed, adding, “You should also not sell it all at once.” Instead, Cramer recommends staging “your purchases, processing your orders, and trying to get the best price over time.”
Our methodology
To round up Jim Cramer’s bold predictions for artificial intelligence stocks, we took a look at the stocks he mentioned on Mad Money and Squawk on the Street back in August. We then picked stocks with exposure to artificial intelligence computing, hardware, and energy generation and ranked them based on the number of hedge funds buying these stocks in the third quarter of 2024.
For these stocks we also mention the number of hedge fund investors. Why are we interested in stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by mimicking the top hedge funds’ stock picks. Our quarterly newsletter strategy, which selects 14 small-cap and large-cap stocks each quarter, has returned 275% since May 2014 and beat the benchmark by 150 percentage points. (See more details here).
Apple (AAPL) stock pricey as upgrade cycle ‘slows’, analysts say
A wide view of an Apple store showcasing the range of products the company has to offer.
Number of hedge fund holders in Q3 2024: 158
Date of Kramer’s comments: 8/16/24
Performance since then: 13.09%
Apple (NASDAQ: AAPL ) is the world’s most valuable technology company. Since more than 50% of its revenue comes from iPhones, smartphones play a key role in the company’s assumptions. Any talk of soft sales could hurt the stock. In 2024, investors are focused on Apple Inc’s (NASDAQ: AAPL ) ability to leverage its loyal customer base to push artificial intelligence services to consumers. They also wonder whether economic weakness in Asia could spell trouble for the company. Apple (NASDAQ: AAPL ) will become the first company in the world to reach a mind-boggling $4 trillion market capitalization in 2024. Here’s what Cramer said about the company in August:
“Buffett is the best. So he’s the best. People look at his actions and ultimately come to ridiculous conclusions, and that’s why they throw away the bag. That’s why they throw away Apple, and we’re told it’s based on Apple Sales in China were said to be weak. However, CEO Tim Cook told me the week before that sales were likely to be strong, and I detailed why throughout the rest of the week and into Thursday morning we were receiving positive Unemployment numbers, we were all wrong about our economy and the smart money was on sale.
Overall AAPL Ranked sixth On our list of artificial intelligence stocks that Jim Cramer has talked about recently. While we acknowledge AAPL’s potential as an investment, we firmly believe that some artificial intelligence stocks have greater promise of delivering higher returns in shorter time periods. If you’re looking for an AI stock that’s more promising than AAPL but trades at less than 5x earnings, check out our report on the stock The Cheapest Artificial Intelligence Stocks.
Read next: 8 Best Wide-Moat Stocks to Buy Right Now andThe 30 most important AI stocks, according to BlackRock.
Disclosure: None. This article originally appeared on Insider Monkey.
