Jim Cramer on Super Micro Computer, Inc. (SMCI): 'Interest Rates Are Unable To Find Their Footing'

We recently published an article titled What Happened After Jim Cramer Talked About These 13 Stocks. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other stocks Jim Cramer recently discussed.

During a recent episode of Mad Money, Jim Cramer offered his perspective on the day’s market rally as he delved into the impact of the ongoing dynamic between President Donald Trump and Federal Reserve Chair Jerome Powell.

“All day, I heard that today’s rally was just a bear market rally, okay? That it was a phony spike, and the market will go right back down the moment the president posts that there’ll be no compromise on tariffs. Who knows, maybe Fed Chief Jay Powell should be deported.”

READ ALSO: Jim Cramer Got These 10 Stocks All Wrong and Jim Cramer Nailed These 11 Stock Picks

However, Cramer pointed out that the tone shifted significantly just after the market closed. In his words, “We get incredible news that is sure to drive this market higher.” The news came directly from the President, who clarified that he had no intention of firing Powell, a rumor that Cramer identified as a major factor in the prior day’s market slide. Trump’s statement, “Never did, never will,” regarding any plans to remove Powell effectively erased the cloud of uncertainty that had been hanging over the markets.

Given this reversal, Cramer questioned whether the rally could still be called a bear market bounce. In his view, it now looked like something more substantial. He explained that real recoveries are often mischaracterized at first. According to Cramer, they typically begin with what appear to be bear market rallies, short-lived, suspicious upticks that many investors brush off due to repeated disappointments in the past. He stressed that the early stages of genuine market turnarounds are often marked by disbelief and hesitation, with only the boldest or most reckless traders recognizing their potential early on. He added:

“Now look, just because the President doesn’t want a constitutional crisis and is going to keep Powell doesn’t mean we have more to go on. For example, there’s been no sign of change from the administration on the trade wars.”

Methodology

For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on April 22, 2024. We then calculated their performance from April 22^nd, 2024, market close to April 23^rd, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.

Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.

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).

Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 45

Jim Cramer analyzed Super Micro Computer, Inc. (NASDAQ:SMCI) and the reasons behind its massive price drop at the time. Going over the company’s fundamentals and potential, he concluded that the main reason for the stock’s decline, along with other tech names, was purely due to macroeconomic factors such as elevated interest rates back then. Here’s what he said:

 “All right, here’s one for you, how does a stock lose nearly a quarter of its value in a single session, as Super Micro Computer did last Friday when it plunged from $928 down to $713? […] As a matter of fact, I think they're purely intellectually lazy thinking. There's a simple reason Super Micro and its high price-to-earnings multiple have been getting hit over and over, because bond yields have been soaring. […] this is a market that's become way more hostile towards richly valued growth stocks. […]

Super Micro’s become integral to the artificial intelligence people because it makes non-proprietary products that’ll help customers who are using Nvidia’s ultrafast chips. I wouldn’t put it in the same camp as Nvidia’s true partners like Cadence or Synopsys […] Super Micro, I put more in the Broadcom/Marvell Tech camp, as important ancillaries to Nvidia. […] In the end, the reason Super Micro went down had nothing to do with Super Micro and everything to do with the fact that interest rates are unable to find their footing. That’s what’s so important about this week.”

The stock is down by 56.82% since Cramer gave that analysis.

Super Micro Computer, Inc. (NASDAQ:SMCI) focuses on the design and manufacturing of advanced server and storage solutions. On March 27^th, Cramer gave his thoughts on why the stock keeps declining recently:

“Now what happened in the service side here that was actually difficult was Super Micro. They provide hardware, but they also provide services. They, along with Arista Networks and Broadcom, they were all part of the data center story that people seem to have cooled on.”

Overall SMCI ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, 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.