We recently published a list of Jim Cramer Discussed These 18 Stocks After Major AI Event. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discussed after major AI event.
After the Consumer Electronics Show (CES) in Las Vegas, Jim Cramer had a lot to talk about NVIDIA and other stocks. While you can take a look at what he had to say about Wall Street’s favorite AI GPU stock by opening our full list, Cramer emphasized that there is a clear division in the stock market. He pointed out “Well again I think that there’s two markets. There’s the healthcare market, the materials market, uh, the food and beverage market. David, that area is just wasteland.” He shared that safety isn’t on investors’ minds when understanding the current stock market. I learned from my friend Michael Haley who is a demolition man that safety never takes a vacation,” Cramer shared and added “He was not speaking about snacks. Because safety’s last!”
The CNBC host also commented on a recent report which shared that consumers might be able to save money by using GLP-1 weight loss drugs. According to him, “If you want to save some money, well, look it’s four hundred dollars. That they’re saving. And by the way, you know, the average person in this country, four hundred dollars, nice saving.”
Another segment that’s caught his attention recently is the alcoholic beverages market. The Surgeon General’s recent opinion of placing a cancer warning on these beverage bottles hasn’t escaped Cramer’s attention. However, he doesn’t think a warning label will deter consumers. Cramer commented that in the aftermath of the Surgeon General’s remarks, “liquor’s just being crushed.” He recalled the Prohibition and shared “All I can tell you is that, we did this thing in prohibition, we had this thing called prohibition, it didn’t work. That was a real way to wipe it out.” Yet, even though the stocks are down, they might not have seen different performance had the warning not been issued. According to Cramer “People don’t wanna own these stocks anyways because of interest rates. It’s just a double whammy.”
Following a comprehensive press conference by President-elect Trump, bond yields soared as investors fretted about political stability. Cramer believes technology stocks are more resilient to rising bond yields but other sectors like healthcare suffer. Yet, according to him “If you were in healthcare right now you’d be saying, what, if you’re Rob Davis at Merck, you say like listen, things aren’t that bad. But it doesn’t matter because it’s all caught up with bonds.”
One government official in Cramer’s crosshairs was FTC chair Lina Khan. Cramer commented on the increased frequency of mergers and acquisitions in the US this year. “I love these deals, David. They take out a competitor,” he shared. “You can raise numbers. It’s rationalizing the American industry. It’s everything that a previous guest [Lina Khan] on this network, hated,” according to Cramer. He also shared thoughts about Khan’s actions against Jeff Bezos’ eCommerce company. The case “is about hurting small businesses,” believes Cramer. However, he believes that it should have been about inflation instead. “Never did she [Khan] ever say that it was about keeping prices down for the consumer. But inflation is the single biggest problem that we have in this country economically. And so she completely missed that boat. And then she injected Reagan into that,” he opined.
Finally, while materials, industrial, healthcare, and alcoholic beverage stocks are struggling, the “Magnificent 7 is what moves things,” said Cramer. He also believes that “if Biden’s legacy is that the Magnificent 7 did really well, well I mean given that I’m a dollar sign represented by a man, I’m thrilled.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on Tuesday.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Since these remarks were after NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang’s appearance at the CES in Las Vegas, Cramer went into quite a bit of depth about the company. At the CES, Huang explored a variety of AI applications in a keynote that appeared intent to shift the focus away from enterprise AI applications which have dominated the narrative so far. It covered industries such as robotics and automobiles, and an announcement that caught Cramer’s attention was NVIDIA Corporation (NASDAQ:NVDA)’s plan to squeeze its Blackwell GPU into a laptop:
“First thing I’m gonna say is that there’s just a huge amount of people saying Amazon’s gunning for NVIDIA. Well, Amazon, they play a good game of chess. No, they play checkers. After this, Amazon’s a checker’s play. Jensen’s playing chess.
“Well because Amazon, well the big reason why Amazon, that Amazon’s supposed to be gunning for NVIDIA, right. Microsoft’s supposed to be gunning for, good luck, he [Jensen Huang] left that behind. Because he’s doing physical.
“So here’s what’s going on. There’d been a lot of scrum, about who’s doing maybe inference, then Amazon’s moving into training. NVIDIA’s not talking about any of that. NVIDIA’s talking about robots. They’re talking about the way you build a factory. They’re talking about physical. They’re talking about Toyota going the way that Tesla’s going. They basically just said you and I are gonna have robots.
“My point is that he is leaving everyone behind. And that’s why it’s stock can go higher. Because if we’re doing physical [physically shrinking a Blackwell GPU in a laptop form factor], what that means is, that you are going to have a robot that does, that is going to be doing exactly what we can do. A robot will be able to talk, it’ll be able to be our buddy. It’ll do things that we hadn’t been able to think they could do. And this is what this is about. This is about productivity and robots. Now yes the PC that we showed that’s gonna be for sale for a very good price. I think that’s going to be very competitive, maybe there’s really going to be AI. But I was just blown away by the digital twin for manufacturing, the Toyota being like Tesla, the humanoids. Remember he keeps [inaudible] humanoids. They even threw a bone in for Apple Vision Pro. Which the downgrade says is a bust. Okay fine, but I just think that it was, that it was, that it was about not being the Jensen Huang that we’ve been hearing about. . . .but I just think that this was, dazzling. Intellectual purposes. Not showman purposes.
“Okay so, who has been a huge customer? Tesla in the data center. Notice that he said the data center, he didn’t say car. Because they’re not making the ones for the car. But if Toyota does that, Toyota has the balance sheet to do it. You know, they’re gonna have to buy five, they may have to buy five hundred thousand chips to get this done. So you’re looking at orders from now to kingdom come. Now over and over and over again he says we’re ready to ship, Blackwell’s ready to ship. Blackwell will be shipping by. . . so therefore you want to put the numbers up right now. I thought that there would be people who say you know what I’ve already heard this.”
Overall, NVDA ranks 2nd on our list of stocks that Jim Cramer discussed after major AI event. While we acknowledge the potential of NVDA 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. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
