We recently published a list of Jim Cramer Discusses These 13 Stocks & Rejects The AI PC Super Cycle. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against stocks that Jim Cramer discusses.
In a fresh appearance on CNBC’s Squawk on the Street, Jim Cramer commented in quite a bit of detail on artificial intelligence and AI PCs. AI, the technology that has caught the investing world by storm, has two facets. The first covers enterprise computing with cloud computing services such as Azure and AWS offering businesses new AI tools for their tasks. The second is the consumer end, dominated primarily via chatbots and services like the Chinese firm DeepSeek’s R1 and OpenAI’s o1.
Another aspect of AI that received quite a lot of attention last year was AI PCs. These computers use hardware designed to run artificial intelligence workloads. This hardware includes graphics processing units (GPUs) and neural processing units (NPUs), which means that their price tag is often higher than a standard computer.
On top of Cramer’s mind was a recent Morgan Stanley consumer survey report which analyzed consumer sentiment with respect to a super-cycle in AI-enabled products. The bank revealed that just 15% of the 400 respondents bought some of the products primarily because they wanted to access AI. The bank added that 60% of respondents inadvertently bought an AI PC and more than 60% shared that they would not pay extra for AI products.
Commenting on the research, Cramer started by sharing “I think the AI hardware super cycle Morgan Stanley piece is perhaps the most damming piece I’ve read.” According to him, the research was striking “Because there’s absolutely no evidence of a super cycle whatsoever.” The CNBC host shifted towards enterprise AI use cases and was appreciative of them. “I mean I think AI is very good when you listen to what Jamie Dimon [inaudible] to say, that AI is very good when you listen to what Marc Benioff has to say,” he outlined.
However, while AI has impressed business users, Cramer admitted to being wrong about consumer demand for AI PCs. “But the PC, I thought we were all gonna upgrade. And now we’re all in wait-and-see mode,” he shared. Cramer added that those he knew who have bought an AI PC “haven’t used it or there’s a button there and it doesn’t work.”
Yet, even though consumer interest in AI PCs might be lackluster, Cramer is still an AI believer. He revealed that “I use it [ChatGPT] every day.” One ChatGPT use case he likes is comparing drugs. “And you start at ChatGPT. You really do. And it’s very authoritative and it tells you who to go to. And I think it’s extraordinary. It’s an extraordinarily good product,” according to Cramer.
In fact, Cramer’s “on ChatGPT maybe five times before I come down here. Ten times before I do Mad Money. There’s nothing I don’t run through. Because I don’t want to make a mistake.” However, he did add that while ChatGPT is great, this doesn’t mean “that it’s not hallucinating.” Yet, Cramer still suggests “. . anyone use it before they buy a stock. It’s that good.”
His praise for ChatGPT isn’t the first time that Cramer’s shared opinions on AI. In a recent CNBC morning appearance, he outlined some enterprise AI use cases. Cramer shared:
“Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
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 January 23rd.
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).
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
NVIDIA Corporation (NASDAQ:NVDA) is Wall Street’s favorite AI GPU stock. It’s also a regular feature of Cramer’s morning shows. Throughout the year, Cramer has praised the firm’s announcements at the CES conference in Vegas and hit back against its detractors. The CNBC host has dismissed reports that NVIDIA Corporation (NASDAQ:NVDA) is struggling with its Blackwell GPU shipments. More recently, he also dismissed speculation that linked weak performance by Korean memory maker SK hynix to slow demand for NVIDIA Corporation (NASDAQ:NVDA)’s AI GPUs. Here are his full remarks:
“And we have to stay close to that. I think that, I know David likes me to opine in the first minute and half about NVIDIA. There’s a company, let’s get this straight. SK hynix. They do DRAM, they do NAND. They’ve got high bandwidth. And they were saying that NAND was weaker, and they’re saying that DRAM is weaker, and not high bandwidth. But it doesn’t matter. People decided. The long knives are out again for NVIDIA. . . .that’s leading the NASDAQ down, not Apple, for once.”
“Right, look I think that the stocks reflect the full bore 100 bil. My problem is that no really coming near that when they talk about the money that they have! So, it may be chimerical, but it’s going in the right direction. And I think that in terms of stocks, instead of just talking in terms like oligarchs, the main thing that people are talking about is that China has reverted to a conversation of no give without a get. We’ll give you some NVIDIA chips if you send us, if you buy some of our soy. It’s that. And that’s why NVIDIA should go up and not down because of this SK hynix. I mean when SK hynix came out, NVIDIA immediately went down three. And that’s so knee-jerk because SK hynix has a lot of different products. We know that they were called NVIDIA’s man in the room basically and that’s not true. Because if you go to Sanjay Mehrotra, he would tell you no, we’re the high bandwidth and their high bandwidth numbers were very good. Um, I come back and say, I like to look at how NVIDIA is doing when I look at NVIDIA. And NVIDIA’s doing fabulously. And that’s what people should do. And stop making these analogs. Stop doing what they did with Apple. Own NVIDIA.”
“I don’t think the President is going to go with that last-minute 18 friends that NVIDIA can do business with. Again, he’s transactionary.”
Overall, NVDA ranks 3rd on our list of stocks that Jim Cramer discusses. 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.
