Critical Metals (CRML) Drops 6% as on 'Sell' Reco

We recently published 10 Stocks With Massive Losses; AI Stocks Not Spared. Critical Metals Corp. (NASDAQ:CRML) is one of the worst performers on Monday.

Critical Metals declined by 6.14 percent on Monday to end at $19.58 apiece as investors took path from a former hedge fund manager’s recommendation to start cashing in on profits.

In the latest episode of Mad Money, host and former hedge fund manager Jim Cramer told a caller to start cashing in on Critical Metals Corp. (NASDAQ:CRML).

“It is time to [take profits in] Critical Metals. You need President Trump to go in there and buy 10 percent of the company—I don’t think it’s going to happen,” Cramer said.

Additionally, optimism for the stock tapered off after trade tensions between the US and China eased.

Critical Metals Corp. (NASDAQ:CRML) has been riding the geopolitical tensions over the past few weeks following China’s new policy to curb rare earth exports that fueled fears of another supply shortage. The curbs sparked optimism for US rare earth producers on expectations that the export restrictions would push customers to look elsewhere for supplies.

Rare earth metals are critical in the growth of the overall economy, as production of various industries, including semiconductors, aerospace, and automotive, heavily relies on the said minerals.

While we acknowledge the potential of CRML 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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