2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q4 2024: 223
NVIDIA Corporation (NASDAQ:NVDA) is the world’s latest AI GPU company. Cramer’s comments quoted here were made ahead of the firm’s highly important fiscal fourth-quarter earnings report. The results saw NVIDIA Corporation (NASDAQ:NVDA) post $39.3 billion in revenue and $0.89 in adjusted earnings to analyst estimates of $38.05 billion and $0.84. The firm’s Q1 guidance also surpassed estimates, but its gross margin guidance of 71% fell below estimates of 72.2%. NVIDIA Corporation (NASDAQ:NVDA)’s shares were flat in aftermarket trading after the report. Here is what Cramer said before the results were announced:
“People are talking about NVIDIA. And there is a nice deal this morning with Cisco. I think it’s actually much more important than people realize. Cisco’s the first to qualify. It’s going to be a real partnership. And that uh Chuck Robbins working closely with Jensen. But there is an overwhelming sense that this market keys on NVIDIA at a moment when we have no idea what the federal government’s gonna do to NVIDIA.”
“Well I mean they might, they literally might just say you know what we’re, we’re going to block NVIDIA. Not just the low-end NVIDIA but every NVIDIA. I had Lam on and I had KLA on, and they’ve already taken the big hit. They could take another hit.”
“No, block and say listen you’re not going to get anything from the United States.” “NVIDIA, big export market China. Are they going to take it away?” “How do you know the government doesn’t say no more low-end chips? Because if you had a lot of low ends. . . I’m talking about, you have a company that reports and maybe they’re not in control of their forecast. And the forecast has been very important.”
“Well cause the Biden administration was quite content having the lowest-end chips go to China. Maybe this administration, and this issue perhaps led by Peter Navarro, says nothing. You get nothing.”
“Well how about if they ban H20? We don’t know! . . .that’s the low-end, that’s like instead of the H200, right. No, it’s not a tinker toy versus, uh, you know a Caterpillar. But it is without a doubt something that is, that had passed muster with the previous administration because it was not really thought to be capable of military.”
“Look NVIDIA is the stock that people say is the biggest battleground. And there are people who think it’s dramatically overvalued. And I don’t get that. Uh, one of the things I’ve asked them, I’ve put the questions to them. You know you have a thing tomorrow, where you actually can ask the CFO some things. . .but I said look I need to know, what kind of, you have the biggest, you have this concentration of five customers. Maybe I want the pastiche if not mosaic of what, of what Apple has. Maybe I want a billion customers.”
“Yes! I am! I am worried. Because I think that if it really turned out to be that hard, to make Blackwell. We do know by the way that Blackwell, Dell’s got a good relationship and . . .HPE was late, but if I’m not, I mean I’m kind of, look I’m looking at the government, I thought the government was off the table.”
“Well I mean look, let’s understand, they say that they’re going to do more. Well what is there to do more? They’ve already restricted almost everything, they send them the lowest-end chips. They obviously still can use those. That’s it. Okay. And they’ve restricted, and I don’t know, look remember the Biden administration on the Saturday night before they ended, the eighteen countries? But I’m just saying that, like, why feel confident that NVIDIA has a good business model, but I don’t know whether the government says listen we’re not going to let you sell chips to all the countries that he just did a charm tour to. Look if you’re not worried, what [inaudible] are you in?”
“It doesn’t work for humanoids. It doesn’t work for video. It doesn’t work for self-driving.” “Look, what does the government mean? When it says it has to crack down on more? The government was cracking down so severely on these guys that I’m shocked that they have to crack down more. I mean they’re probably willing to give anything to the Kremlin.”
