Mad Money

The S&P 500's top 10 performers since its bear market low — and where Cramer stands on them now

Key Points
  • CNBC's Jim Cramer reviewed the S&P 500's top 10 performers since the index hit its bear market low a year ago.
  • Top performers include Nvidia, Meta, Fair Isaac and General Electric.
Jim Cramer breaks down his thoughts on Meta's performance in last year
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Jim Cramer breaks down his thoughts on Meta's performance in last year

The S&P 500 hit its bear market low one year ago, so CNBC's Jim Cramer gave his take on the index's top 10 performers since then.

"I think some of them can keep winning from here, but some have definitely lost their luster in a world where rates are soaring again and we're increasingly worried, once again, about the economy," Cramer said.

  1. Nvidia: One of Cramer's favorite stocks, in August 2022, Nvidia announced a quarterly shortfall and was then hit with a ban on selling its graphic chips to China. But things quickly turned around for the company following the debut of ChatGPT, Cramer said, with investors realizing the important role its chips play in artificial intelligence.
  2. Meta: Like Nvidia, Facebook-parent Meta reported a less-than-stellar quarter last fall and ended up issuing two big rounds of layoffs, Cramer said. But he stressed that the company's prospects have changed since then. With its costs under control, growing revenue and a "compelling" AI application called Llama 2, Cramer said Meta is an example of a great company that stumbled but ultimately found a way to change its narrative.
  3. Fair Isaac: Cramer said he finds it hard to recommend Fair Isaac, a data analytics company focusing on credit scores, because of increased mortgage rates, which will affect the housing market.
  4. General Electric: According to Cramer, General Electric has "finally gotten its act together" after years of underperformance and setbacks. Cramer highlighted the company's aerospace and health-care spinoffs, as well as its upcoming power spinoff, GE Vernova.
  5. Broadcom: Cramer called semiconductor and software company Broadcom one of the "less appreciated AI winners," but he added that going forward, Broadcom needs to close on its $61 billion acquisition of VMware.
  6. Lam Research: Cramer suggested investors look into semiconductor equipment stocks such as Lam and its peer, Applied Materials, before they become too expensive.
  7. Adobe: Cramer recommended Adobe for its use of AI, specifically products such as Firefly, saying he thinks the stock has more room to run.
  8. Royal Caribbean: Cramer said this cruise company has done well this year because of the post-Covid travel boom, but he warned that these stocks can be volatile, especially with consumers feeling the burden of inflation.
  9. Eli Lilly: Cramer said this drug maker has done well due to its diabetes treatment Mounjaro, which has also found off-label use for weight loss.
  10. PulteGroup: Cramer said homebuilders such as PulteGroup remained strong in the face of the Fed's rate hikes in part due to the housing shortage. But he cautioned that this group is seeing pullbacks as mortgage rates edge toward 8%.
Jim Cramer eyes Nvidia and its AI potential after last year's gains
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Jim Cramer eyes Nvidia and its AI potential after last year's gains

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Meta and Broadcom.

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