Not every AI stock gets the Jim Cramer seal of approval. Nebius Group N.V. (NBIS) is losing money and represents too much speculation for the Mad Money host's taste, even as artificial intelligence continues dominating market conversation.
Cramer's preferred play? Dell Technologies Inc. (DELL), which offers exposure to AI infrastructure without the same level of risk.
The skepticism comes with good reason. Nebius reported third-quarter results on November 11 that underwhelmed investors. The AI infrastructure company brought in revenue of $146.1 million, falling short of the $155.11 million analysts had penciled in. On the bright side, Nebius posted an adjusted loss of 40 cents per share, which actually beat expectations for a 49-cent loss. The company also unveiled plans for an at-the-market equity program involving up to 25 million shares.
During CNBC's Mad Money Lightning Round, Cramer fielded questions about other stocks too. When a viewer asked about Kenvue Inc. (KVUE), he struck a more positive tone. "I think it is a good situation, not a bad one," Cramer said of the consumer health company.
That assessment aligns with recent Wall Street moves. Barclays analyst Lauren Lieberman maintained an Equal-Weight rating on Kenvue on November 10, while bumping her price target from $17 to $18.
Price Action:
- Nebius shares gained 5% to settle at $95.07 on Wednesday.
- Dell shares fell 2.7% to close at $119.38.
- Kenvue shares declined 1.1% to settle at $16.06 on Wednesday.
