We recently published a list of Jim Cramer Put These 12 Stocks Under the Spotlight. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other stocks that Jim Cramer discussed.

On Friday’s episode of Mad Money, Jim Cramer reflected on a significant shift in market sentiment over the past week as he described how the mood turned from cautious to confident.

“We often speak of moments when the stock market tends to do well…. We know that stocks thrive, for instance, when interest rates are going down but there’s another auspicious moment and that’s when the conventional wisdom collectively decides that because of extenuating circumstances, in this case, a welcome break from ever higher tariffs, we’re no longer at risk of a recession in the near future.”

READ ALSO 15 Stocks on Jim Cramer’s Radar and Jim Cramer Recently Commented On These 12 Stocks

Cramer pointed out that this kind of collective pivot in sentiment can be just as impactful as a rate cut. He emphasized that in his long career observing markets, moments like these often mark good entry points for investors. He believes that we are currently in one of those moments.

Looking back on what he called a “very bullish” week, Cramer said it will likely be remembered as the period when Wall Street strategists began to back away from recession warnings. He said that the retreat from doomsday predictions helped fuel a strong rally, especially among industrial stocks.

“If hedge funds thought we were about to experience the apocalypse, and many of them did, then they were poorly positioned coming into this week. And when hedge funds are poorly positioned, you get incredibly motivated buyers like the ones we saw all week that help take us all the way…. And they may not be done with all of their buying, at least because we’re suddenly in a very different world with the pessimists having been caught with their pants down. Until they turn optimistic, which might take a little bit, we should remain in good shape.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 16. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Story Continues

Jim Cramer Favors Cisco Over Arista Networks (ANET)

A technician in a server room managing a large-scale network of computers.

Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 78

During the lightning round, a caller asked about Arista Networks Inc (NYSE:ANET). This is what Mad Money’s host had to say:

“Arista Networks had a better quarter this time than the previous quarter. At the same time, I will tell you, here’s what concerns me: I think Cisco did a better job this quarter and is taking some of their business. I’d rather have you go with Cisco, which is a much cheaper stock.”

Arista Networks (NYSE:ANET) develops and sells networking solutions that support data centers, cloud infrastructure, and AI systems. The company’s products include a custom operating system, network software, and support services for a wide range of industries. On May 2, Cramer said the following about Arista (NYSE:ANET):

“Arista Networks is a crucial part of the data centers, and it reports. And last time, the doubters surfaced immediately, claiming that these guys were losing share. I think Arista can put those doubts to rest when it’s, you know, honestly, they can, and that means it’s a buy ahead of the quarter. Never count out CEO Jayshree Ullal. Big mistake. Think about buying Arista.”

Overall, ANET ranks 5th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ANET and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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