1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
AI chip darling NVIDIA Corporation (NASDAQ:NVDA) was at the center of the DeepSeek sell-off as it lost more than $600 billion in market value. The drop occurred because investors were worried that billions of dollars in spending by big tech to buy NVIDIA Corporation (NASDAQ:NVDA)’s GPUs might not materialize if the low development costs from DeepSeek’s R-1 model were accurate. Cramer has been one of the biggest proponents of the stock, and he started his morning show by explaining that what really mattered for NVIDIA Corporation (NASDAQ:NVDA) was whether its orders would be cut:
“Let’s talk about something else. So against the idea that you’re spending too much on NVIDIA, is the censorship [On DeepSeek R-1] that I don’t really think any of the American companies can trust.
“Right look I think you can certainly make any claim you want. I think what matters to me in the end is numbers. Do you pause your NVIDIA orders? Do you say you know what I’ve spent a lot on NVIDIA, now I can hold back. Is this some sort of prisoner’s dilemma where if you hold back then maybe Ellison goes and buys. I think that NVIDIA’s really the target here because it’s cost so much money and it just doesn’t seem to be able to command that kind of money if this is good.
“Look, we don’t know how many chips they really used.
“[On if Jevon’s paradox is going to be proven correct] Exactly, I was wondering that myself when I was looking at GE Vernova, Constellation Energy Group. Look, Carl, I think that in the end again it always comes back to, can NVIDIA make its numbers? And I think it’s harder. You know I like NVIDIA but I think it’s harder. We haven’t heard from them, but it is quiet period. Who are the winners?
“Remember, Blackwell, which is the current iteration, Blackwell’s about video. It’s just about video. And video is incredibly important. Because video is the ability to make it so that the robots work. Robots do not work on the current one. And I think robots are the next frontier. So I don’t think necessarily that uh . . . .Elon Musk, who may be focused on many different things, that Elon Musk says I don’t wanna buy NVIDIA’s chips.”
NVDA is a stock Jim Cramer talked about as DeepSeek wreaked havoc on the stock market. 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 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.
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