In his recent episode of Mad Money, host Jim Cramer focused on the upcoming market events, emphasizing the importance of new consumer price index data alongside a series of reports as the earnings season kicks off.
Cramer pointed out that the Labor Department’s nonfarm payroll report revealed significant job growth in September, surpassing expectations. He highlighted the significant rally in stocks on Friday, a response to better-than-expected job creation figures. The U.S. economy added 254,000 jobs in September, significantly exceeding Wall Street’s estimate of 150,000. Additionally, there were upward revisions for the previous two months, with 72,000 more jobs reported for July and August combined.
Despite his initial expectation that stocks would decline as bond yields surged, Cramer noted the resilience in the market. He observed that people seemed to feel relief, thinking that a major economic downturn was not on the horizon, which prompted a flurry of buying activity in the stock market. He added, “Maybe we aren’t headed toward a landing at all.” He described the situation as quite unusual and, in his view, “quite exciting”.
He mentioned that on Wednesday, the Federal Open Market Committee will publish notes from its last month’s meeting, which could clarify the central bank’s bold choice to cut interest rates by 50 basis points. According to Cramer, Wall Street is rife with speculation about the Federal Reserve’s future actions, especially following strong labor statistics released last Friday. As speculation swirls around whether the next cut will be 25 or 50 basis points, Cramer leaned towards the belief that it would likely be 25 or nothing at all. He added:
“Then again, what really matters is the overall direction for rates, and that direction is most definitely lower, which is bullish for stocks”
He also mentioned that Friday would bring the producer price index report, which, like the consumer price index, will serve as a critical indicator for the Fed’s upcoming decisions. Cramer commented:
“Here’s the bottom line: a market that appreciates good news, like a robust job creation number, is a market that can handle, well, let’s just say, the historically tough month of October. After today’s performance, all I can say is so far so good.”
11 Stocks on Jim Cramer’s Radar Right Now
Our Methodology
For this article, we compiled a list of 11 stocks that were mentioned by Jim Cramer during his episode of Mad Money on October 4. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Stocks on Jim Cramer’s Radar Right Now
11. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 47
BlackRock, Inc. (NYSE:BLK) operates as a prominent investment management firm and is recognized for offering global risk management and advisory services while managing a variety of portfolios, including equity, fixed income, and balanced investments. It offers a wide range of investment products, such as mutual funds, exchange-traded funds (ETFs), and hedge funds, spanning multiple asset classes. Cramer talked about the company’s famed software and CEO and said:
“Larry Fink’s done an incredible job, not only in making money but also in producing the best asset management software. I don’t think this company gets nearly enough credit for either and its stock deserves to trade higher. I think you could break out here.”
In the second quarter, BlackRock (NYSE:BLK) reported a significant increase in technology services revenue, which rose by $36 million from the same quarter in 2023 and by $18 million compared to the first quarter of 2024.
The growth was owed to a strong demand for Aladdin technology offerings. The annual contract value (ACV) also increased by 10% year-over-year, highlighting sustained interest in the full range of Aladdin’s capabilities.
Management has noted that the long-term potential lies in utilizing the company’s Aladdin platform and capital markets expertise to develop indexing solutions for private markets. Aladdin not only serves as a critical technology for BlackRock (NYSE:BLK) but also supports many of its clients, who are increasingly adopting these technological investments within the fintech and data ecosystems.
Baron FinTech Fund stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q2 2024 investor letter:
“Despite share price performance in the fintech sector lagging broad market indices, fintech sector fundamentals remain strong with mid-teens earnings growth across the Fund. We continue to invest behind secular themes where the intersection of financial services and technology should drive innovation and growth for years to come.
One of these themes is the growth of private markets, which are the fastest growing segment of asset management with alternative assets expected to reach nearly $40 trillion by 2030. BlackRock, Inc. (NYSE:BLK) is acquiring Global Infrastructure Partners, a leading independent infrastructure fund manager with over $100 billion in AUM, to capitalize on the growing need to modernize digital infrastructure, upgrade supply chains and logistics infrastructure, and invest in renewable energy. BlackRock also announced the acquisition of Preqin, a leading private markets data vendor, to provide standardized information, benchmarks, and analytics in an $8 billion data market expected to grow 12% annually through the end of the which allows the proceeds to be invested in highly rated private credit with higher yields but less liquidity than publicly traded fixed income securities with the same credit risk. This illiquidity premium is highly valuable in an industry with narrow spreads, providing a competitive edge to well-managed annuity providers that invest in private credit. In addition, higher interest rates combined with a growing population of retirees are spurring greater demand for guaranteed income products. Fixed annuity sales grew 37% in 2023 and have more than doubled since 2021, providing a greater supply of capital that can be invested in highly rated private credit.”
10. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 51
Delta Air Lines, Inc. (NYSE:DAL) is a leading provider of scheduled air transportation services for passengers and cargo, operating on a vast scale both domestically and internationally. The company’s domestic network is centered around key hubs, including Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City. Talking about the company, Cramer commented:
“Let me get results from Delta. The airlines came on strong today with huge insider buying at Southwest Air. After that reorg, I’m not a buyer of the airlines. They’re too fickle for me. But I bet Delta tells a good story.”
Delta Air Lines, Inc. (NYSE:DAL) also maintains coastal hubs in major cities such as Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle. Internationally, the airline has established a strong presence with hubs in notable cities like Amsterdam, Bogotá, Lima, Mexico City, London Heathrow, Paris-Charles de Gaulle, São Paulo, Seoul-Incheon, and Tokyo.
It is worth noting that the stock is trading at a forward PE multiple of 8.04, an over 60% discount compared to its sector median.
Additionally, Delta’s (NYSE:DAL) President Glenn Hauenstein has addressed investors regarding improvements in capacity management. He commented that the excess capacity seen during the summer began to resolve itself in August, which positively impacted revenue trends as the airline moved into the fall, typically considered an off-peak season.
During the second quarter, the revenue was 5.4% higher than 2023. It was owed to strong demand and best-in-class operations. Revenue diversification was a key factor, with premium offerings, loyalty programs, and various other revenue sources accounting for 56% of the overall revenue.
9. Domino’s Pizza, Inc. (NYSE:DPZ)
Number of Hedge Fund Holders: 52
Domino’s Pizza, Inc. (NYSE:DPZ) operates one of the most famous pizza restaurant chains all over the world. The company operates through three segments, U.S. Stores, International Franchise, and Supply Chain. Under the Domino’s brand, it serves pizzas alongside various other menu items, including oven-baked sandwiches, pasta, boneless chicken, wings, breads, desserts, and beverages. Cramer talked about the company and commented:
“The last quarter was a big disappointment, largely to, surprisingly weak numbers from overseas. You know what? That does make Domino’s stock a little hard to call. But if you had, you know, push comes to shove, I’d go with the buyers, not the sellers.”
For Q2, Domino’s Pizza (NYSE:DPZ) reported strong comparable sales growth and solid earnings for the quarter. The company achieved a GAAP EPS of $4.03, which beat estimates by $0.35. Meanwhile, revenue reached $1.09 billion, marking a 7.1% increase compared to the previous year, although this figure fell short of expectations by $10 million.
It is important to note that the U.S. same-store sales grew by 4.8% year over year, a sign of the brand’s ongoing popularity.
Despite these positive results, Domino’s Pizza (NYSE:DPZ) stock experienced a decline, primarily driven by guidance for the remainder of 2024 and expected long-term growth challenges.
Management forecasted that comparable sales growth in the U.S. is expected to decrease to around 3% for the rest of the year, which did not align with investor expectations. Additionally, the company faces hurdles in achieving its 2024 target of opening 925 new stores internationally, with management projecting a shortfall of 175 to 275 stores.
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 58
Hewlett Packard Enterprise Company (NYSE:HPE) is a provider of solutions that allow customers to capture, analyze, and act on data effectively. The company operates through various segments, offering a variety of products, including general-purpose and specialized servers, advanced computing systems, and storage solutions. Talking about the company, Cramer said that it will hold an analyst day in the week, which will be “dedicated to its AI efforts, which are substantial and underestimated” and he also thinks it will be a “needle mover”.
Hewlett Packard (NYSE:HPE) reported a 3% year-over-year increase in revenue in the second quarter, reaching $7.2 billion, which surpassed analyst expectations. The adjusted EPS stood at $0.42, also exceeding consensus forecasts.
On September 25, Barclays upgraded Hewlett Packard (NYSE:HPE) stock to Overweight from Equal Weight with a price target of $24, up from $20. The firm believes that the company will benefit from growth in artificial intelligence server revenues and improvements in its storage segment.
Additionally, the recent acquisition of Juniper Networks is expected to contribute positively to the company’s overall performance. Barclays sees early signs of recovery in enterprise spending, suggesting that investing in the company presents a compelling opportunity, particularly given that its stock has not yet fully reflected the potential benefits of AI advancements compared to other hardware competitors.
Recently, Bernstein analysts, led by Toni Sacconaghi, highlighted that the AI prospects for the company will continue to be closely linked to training and Tier 2 hyperscalers in the near term, which typically offer low profits, rather than on-premise inferencing, where profit margins are expected to be significantly higher.
7. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 65
PepsiCo, Inc. (NASDAQ:PEP) is a prominent global company engaged in the production and sale of beverages and convenient foods. The product range offered by the company is vast, including snacks such as chips and dips, cereals, and various side dishes. The beverage selection includes ready-to-drink teas, coffees, juices, and even alcoholic beverages marketed under the Hard MTN Dew brand. Popular brands like Lay’s, Doritos, Gatorade, and Pepsi-Cola highlight the company’s ability to appeal to a wide range of tastes and preferences.
Mentioning the company’s upcoming earnings release, Cramer said:
“Tuesday marks the beginning of earning season when PepsiCo reports before the open. Now, this reliable food and beverage stock has been hit with multiple price target cuts, okay. But maybe that’s put a lid on expectations to the point where the stock can stabilize on somewhat in-line results. By the way, it doesn’t hurt that PepsiCo sports a 3.2% yield, which is pretty darn good, especially as long as treasury yields stop going higher. It sure is tempting.”
Although PepsiCo (NASDAQ:PEP) may currently face challenges in the market, its strengths in supply chain management, marketing, and distribution provide a significant advantage in both growing existing brands and pursuing innovative opportunities or acquisitions. Additionally, it has established itself as a Dividend King, having consistently paid and increased its dividends for over 50 years.
On October 1, PepsiCo (NASDAQ:PEP) announced a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods, for $1.2 billion. Through the acquisition, it seeks to advance the company’s portfolio by integrating an authentic Mexican-American brand and expanding its offerings of better-for-you food products. The transaction is expected to be finalized in the first half of 2025.
6. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is a leading global automotive manufacturer engaged in the design, construction, and sale of trucks, crossovers, cars, and automobile parts. In addition to its core vehicle offerings, the company provides software-enabled services and subscription options. Vehicles are marketed under several well-known brands, including Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling. The company distributes its products through a network of retail dealers and distributors, catering to both individual consumers and fleet customers.
Talking about several key points related to the stock, Cramer said:
“Hey, you know what tempting is? General Motors. They hold an analyst meeting [on] Tuesday. GM’s having a great year. [The] stock’s up 27%. I think the redoubtable CEO Mary Barra will tell a strong story.”
Recently, General Motors (NYSE:GM) released its third-quarter sales figures for the U.S. market, which highlighted a 3% increase in retail sales compared to the previous year, resulting in a total of 659,601 vehicles delivered.
The quarter also marked a significant achievement in electric vehicle sales, with 32,095 EVs sold, representing a remarkable 60% year-over-year growth and a 46% increase from the second quarter of 2024.
Cramer went on to say:
“The company’s been able to put up quality numbers even when interest rates were higher. So who knows how well it can do now that the Fed’s our friend. Holy cow. Hey, by the way, unlike Ford, GM has a substantial buyback, which has clearly helped in stock. By contrast, Ford stock’s down 13% for the year. Given that GM still trades at less than five times earnings, and as long as Barra doesn’t cut the forecast, I think the stock can only go higher.”
With the positive momentum observed in sales and management’s optimistic outlook for the remainder of the year, General Motors (NYSE:GM) raised its guidance for full-year 2024. The company forecasts adjusted EBIT in the range of $13 billion to $15 billion, adjusted diluted earnings per share between $9.50 and $10.50, and adjusted automotive free cash flow projected to be between $9.5 billion and $11.5 billion.
Management commented that the increase in cash flow guidance surpasses the growth in EBIT, which is largely because of aligning production with market demand and expected benefits from working capital management over the upcoming months.
Diamond Hill Capital stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:
“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”
5. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 83
Wells Fargo & Company (NYSE:WFC) is a significant global financial services company that provides a wide range of banking, investment, mortgage, and finance products. The company has approximately $1.9 trillion in assets, which points to its significant position within the financial sector.
In the Consumer Banking and Lending segment, the company offers a variety of services including checking and savings accounts, credit cards, and a range of loan options.
The Commercial Banking segment is focused on delivering financial solutions, including banking and credit products across multiple industries. The Corporate and Investment Banking segment plays an important role in offering capital markets and financial services. The company also provides personalized services such as wealth management, brokerage, and private banking through the Wealth and Investment Management segment.
Highlighting the company’s upcoming event, Cramer said:
“We do have an onslaught of financial earnings in the morning. We’ve got Wells Fargo, JPMorgan, and BlackRock. I think the banks represent the least expensive group in the market, which means you need to use any weakness to buy them.”
During the first half of the year, the bank faced some challenges posed by interest rates but they are likely to be short-lived. It stands to benefit significantly when rates decrease, as it is among the most consumer-oriented of the major U.S. banks.
In the second quarter, Wells Fargo (NYSE:WFC) reported a net income of $4.9 billion, or $1.33 per diluted common share. Management highlighted the strong performance of the firm’s fee-based businesses, which were owed to recent market conditions and strategic investments.
Additionally, the company has been focused on returning capital to shareholders. It recently announced a 14% increase in its dividend for the third quarter, alongside substantial share buybacks, totaling $12 billion in the first half of 2024.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) is one of the biggest names in the electric vehicle and energy sectors. It is engaged in the design, development, manufacturing, leasing, and sales of electric vehicles and energy generation and storage systems across the globe.
In the Automotive segment, the company offers a range of electric vehicles alongside automotive regulatory credits. The Energy Generation and Storage segment is dedicated to solar energy systems and energy storage products. It includes the design, installation, leasing, and repair services related to these products.
Cramer called attention to the company and stated:
“… we have one of the most exciting meetings ever, and that’s going to be Elon Musk’s ‘We, Robot’ event. Okay. This is for the strategy for autonomous driving. I think this meeting will show off Tesla’s technological edge and will be incredibly well-received. And you won’t think of it as a car company after this meeting. You’ll think of it as a tech company. And that’s why I think you should buy the stock ahead. Okay, ahead of this meeting.”
As Tesla (NASDAQ:TSLA) prepares for its upcoming unveiling of the autonomous “robotaxi” on October 10, analysts are closely monitoring developments. Elon Musk has expressed confidence in the advancements in driverless technology, along with innovative AI products and robotics. He has mentioned that they could significantly increase Tesla’s market valuation.
On October 2, Baird analyst Ben Kallo made a note of the company’s reported deliveries in Q3 that slightly exceeded consensus expectations but fell short of Baird’s estimates. However, energy storage deployments reached 6.9 GWh, marking the second-highest quarterly total in the company’s history.
Analysts at Baird view the upcoming robotaxi announcement as a pivotal event and maintain an Outperform rating on the company stock, setting a price target of $280.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company. It operates through four segments, Data Center, Client, Gaming, and Embedded. The company offers a diverse range of products that include x86 microprocessors, graphics processing units (GPUs), chipsets, and various data center solutions.
Its well-known product lines include the Ryzen and Ryzen Threadripper processors, AMD Radeon graphics cards, and EPYC server microprocessors. The company also produces low-power solutions and field-programmable gate arrays (FPGAs), along with adaptive system-on-chip (SoC) products, marketed under names such as Virtex, Kintex, and Versal.
Ahead of the company’s analyst day, Cramer said:
“Not to be outdone, Lisa Su, the CEO of AMD, will hold an analyst day and it’s entitled Advancing AI 2024. It starts at noon. Today, when the stock was plummeting, I told investing club members at my 10:20 morning meeting that Su’s presentation could show this charitable trust holding in a whole new light, even as they’ve been raising their AI sales forecast quarter after quarter after quarter. I think it’s a buy ahead of the meeting, although the stock did run eight points after we talked about it at the morning meeting.”
On October 10, Advanced Micro Devices (NASDAQ:AMD) is set to host its “Advancing AI 2024” event, which is expected to show the next generation of AMD Instinct accelerators and the fifth-generation AMD EPYC server processors.
It is a highly anticipated event within the industry, especially as Chief Executive Officer Lisa Su has projected over $4.5 billion in sales from its artificial intelligence chips for the current year.
On October 5, BofA made a note of the fact that last year’s AI event on December 6 led to stock returns of 19% after one month and 80% after three months. The firm also highlighted that the stock reached its peak in early March, just before Nvidia’s GTC tradeshow.
The firm suggested that updates to the AI roadmap and server CPU developments, along with positive feedback from cloud customers, may revitalize Advanced Micro Devices (NASDAQ:AMD) stock, which has only seen a 9% increase year-to-date.
Despite this, the competitive landscape is becoming increasingly crowded, and expectations among investors are high, as they expect the company to raise calendar year 2024 AI sales by another 10% to over $5 billion. The analyst maintained a Buy rating on the company stock with a price target of $180.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) lagged the market after the company reported earnings results that, while generally strong, left the market wanting more. The company reported AI revenue of ~$600 million and increased its forward-looking outlook for AI revenue growth, but shares took a breather, as results missed elevated expectations after the stock’s strong performance. Despite the stock’s underperformance during the quarter, the company’s AI story remains very much intact. The growth outlook for the company is supported by better cloud demand, enterprise recovery and continued share gains ahead of the company’s new AI product launch.”
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based global financial services company that runs through various segments. The Consumer & Community Banking (CCB) segment provides deposits, loans, and payment services to consumers and small businesses.
The company’s Corporate & Investment Bank (CIB) offers investment banking services, including advisory and capital-raising solutions, along with securities services. Meanwhile, the Commercial Banking (CB) segment serves small and midsized businesses, local governments, and corporations with lending and investment banking.
Finally, the Asset & Wealth Management (AWM) segment delivers investment management and financial services to institutional clients and high-net-worth individuals. As of June 30, 2024, JPMorgan Chase reported assets totaling $4.1 trillion, with stockholders’ equity amounting to $341 billion.
Cramer mentioned the company and said:
“We do have an onslaught of financial earnings in the morning. We’ve got Wells Fargo, JPMorgan, and BlackRock. I think the banks represent the least expensive group in the market which means you need to use any weakness to buy them.”
In the second quarter, JPMorgan Chase (NYSE:JPM) achieved a net income of $18.1 billion, or EPS of $6.12 on revenue of $51 billion. The revenue represented an increase of $8.6 billion or 20% compared to the previous year.
The company also announced an increase in the quarterly common stock dividend from $1.15 to $1.25 per share for the third quarter. It is payable by October 31 to the shareholders of record on October 4. The stock has a dividend yield of 2.37%, as of October 4.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is a leading global provider of graphics, compute, and networking solutions, known for its technologies that cater to various markets, including gaming, professional visualization, data centers, and automotive applications. Within its Graphics segment, NVIDIA offers GeForce GPUs designed for gaming, the GeForce NOW streaming service, and Quadro/NVIDIA RTX GPUs tailored for enterprise graphics. Additionally, the company develops software solutions.
Cramer commented on the excitement surrounding the company and said:
“Nvidia’s Jensen Huang will be ringing the Nasdaq opening bell with his team to celebrate the birth of the GPU 25 years ago. Those are the faster chips that make generative AI work. Congratulations to the NVIDIA team.”
NVIDIA (NASDAQ:NVDA) first gained recognition with the launch of the GeForce 256 in 1999, which was hailed as the world’s first graphics processing unit (GPU). It revolutionized gaming by delivering smoother graphics and higher frame rates, ultimately shaping the future of computer graphics and gaming experiences.
Over the years, the company expanded its focus beyond gaming and has made a name for itself, especially in AI. Recently, CEO Jensen Huang highlighted the overwhelming demand for NVIDIA’s next-generation AI chip, Blackwell, calling it “insane.”
Huang expressed that the rapid pace of technological advancement presents an opportunity for the company to intensify its innovation efforts. He emphasized the goal of advancing capabilities, increasing throughput, and reducing both costs and energy consumption.
Blackwell is set to be priced between $30,000 and $40,000 per unit, and demand is high from major corporations such as Microsoft and Meta, which are establishing AI data centers to support applications like ChatGPT and Copilot.
Generation Investment Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“Recent net performance is behind market averages. However since the fund’s inception, we have spent only about 8% of the time underperforming on a rolling five-year basis.1 We do not enjoy these spells. A number of different factors has contributed to the current period of underperformance. The fact that we do not own NVIDIA Corporation (NASDAQ:NVDA) is one. That single company accounted for roughly 25% of returns in the benchmark so far this year, meaning almost everyone who does not own Nvidia has lost out. Year-to-date, not owning Nvidia explains about a third of our relative underperformance.
Nvidia is, clearly, an earnings juggernaut. In the past year its revenue has more than tripled, as cloud companies load up on hardware to power AI models. So while its earnings multiple has increased, we are not seeing a repeat of the dotcom mania of the late 1990s. This company’s valuation is backed by cold, hard cash…” (Click here to read the full text)
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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