Monday.com vs. AI Stocks: Is Cramer's Favorite Still a Growth Leader?

The market's obsession with AI has reached fever pitch, but is it time to revisit Jim Cramer's long-standing favorite, monday.com (MNDY), now that its stock has surged 28% since the Mad Money host first championed it in 2024? While undervalued AI stocks like Quantum Computing (QUBT) and Hut 8 (HUT) are grabbing headlines with 850%+ returns, Monday.com's enterprise software moat and Cramer's institutional backing make it a compelling alternative for investors seeking steady growth. Here's why the stock still belongs in your portfolio—and how it compares to the AI darlings.

Cramer's Case for Monday.com: A Salesforce for the Modern Enterprise

Jim Cramer first spotlighted monday.com in May - November 2024, calling it a “junior Salesforce” with the potential to dominate project management software. His prediction paid off: the stock climbed 28.3% by May 2025, and its Q3 2024 revenue hit $251 million—a 33% jump—while free cash flow soared 27%.

The company's secret? A no-code platform that simplifies workflows for enterprises, with a $1 billion ARR milestone hit in just 10 years. Analysts now see a $320 price target (up 10% from current levels), citing its expansion into CRM and IT solutions. Even as AI stocks dominate headlines, Monday.com's enterprise traction remains unmatched.

The AI Opportunity: Why It's Risky but Rewarding

While Monday.com grows steadily, undervalued AI stocks offer explosive upside—if you can stomach the volatility. Consider these contenders:

• Quantum Computing (QUBT): A 850% return over 12 months, fueled by its EmuCore reservoir computer deals with automakers. But its $2 billion market cap is tiny, and quantum computing's commercial viability remains unproven.
• Hut 8 (HUT): A $1.4 billion market cap with data centers for Bitcoin mining and AI. Its 430-megawatt expansions look smart, but regulatory risks around crypto could sink it.
• AMD (AMD): A safer bet with 36% revenue growth in Q1 2025, but its AI chip race against NVIDIA leaves it playing catch-up.

Why Monday.com Wins in the Long Game

1. Stable Valuation: MNDY's P/E of 77x is far below AI peers like QUBT (200+ P/E) or Palantir (PLTR, 150x). Its 2027 EPS target of $5 suggests it could grow into this multiple.
2. Enterprise Scale: 66 hedge funds hold MNDY—proof institutions trust its SaaS model. AI stocks lack this institutional backing, relying on speculative hype.
3. Diversification Edge: Monday.com isn't just a project tool—it's expanding into CRM and IT, a strategy Salesforce used to dominate. AI stocks focus on narrow niches, making them vulnerable to disruption.

The Bottom Line: Buy MNDY for Safety, but Hedge with AI

Investors chasing AI's 100x upside should look elsewhere—but don't overlook Monday.com. Its 28% gains and enterprise-grade software make it a safer growth bet. Pair it with smaller AI plays like Hut 8 (HUT) for data center exposure, but keep 70% of your tech allocation in Monday.com.

The verdict? Cramer's pick isn't dead—its valuation sanity and proven execution give it staying power in a market gone AI-crazy. Act fast: as more hedge funds pile in, this “junior Salesforce” could soon outgrow its mentor.

Action Item: Buy MNDY at $290, targeting $320 by year-end. Allocate 10% to HUT or QUBT for speculative upside—then sit back and let Monday.com's workflow revolution do the rest.