4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
NVIDIA Corporation (NASDAQ:NVDA) is the leading AI GPU designer that continues to make headlines in 2024. It started the year with a catchy CES keynote that saw CEO Jensen Huang extend the narrative about the firm’s GPUs to humanoid robots. Yet, less than a month later, NVIDIA Corporation (NASDAQ:NVDA)’s shares lost 17% during the DeepSeek AI selloff as investors pondered whether low AI development costs would lead to lower GPU spending. Cramer’s comments surrounded both these factors:
“[on cloud miss stemming from more demand than capacity] Yes it does [says good things for NVIDIA]. It says great things. Now, what people are still concerned about is if notice in their verbiage, that they’re gonna be the first to sell Blackwell. Well, wait a second I thought Blackwell was selling like mad. So that was a pause. Second, we have one more in this gauntlet, will Amazon say that they’re going to pause. Why didn’t Alphabet say, you know what, in light of DeepSeek, we’re going to maybe pause our spend but they couldn’t because they’re an honest company and obviously the CFO’s not gonna let them do that.”
“I mean, Carl, we sold down NVIDIA cause of a belief that it didn’t need all this capex. So far, everyone has said they do, Amazon’s the one that has the most that they’re working on, that’s away from NVIDIA. But, if Amazon says you know what, we’re gonna [inaudible] capex, then NVIDIA’s going to go up rather dramatically.”
“[On Citi reducing NVIDIA price target] I saw that. Right I mean I read through that and I said to the guys, I said to Jeff Marks and Ben Stoto, all right, here they go, here come the downgrades. The downgrades seemed almost out of sync. It really was much more of like all right, this thing’s not moving, so like let’s get away from it. It was not substantive. The only substantive thing I really found was that I keep thinking that Blackwell, which is the next generation, is selling like mad and to have the first customer, to learn that the first customer is finally taking it, tells me that it’s going to be much more forward and not now in front of us. But it’s going to happen, because obviously if you’re spending all this money you’re gonna get Blackwell. Then you say to yourself, why do you need Blackwell? Why do you need this incredibly important platform that has software? Well you need it for both inference and you need it for training. There are people who said with DeepSeek you don’t.”
“Now there’s an outfit that I’ve been dealing with called you dot com. . . .I really like you dot com. It’s one of those companies that is really ahead of DeepSeek, it’s way ahead. So I said oh my god, this is going to hurt NVIDIA. And he’s, well no actually they’re our largest investor. Once again you just find this, the long knives came out, whether it be China or whether it be Biden or whether it be these big hyperscalers, that said listen we don’t want NVIDIA, we wanna scale back in NVIDIA and then something happened which just said, you know, I guess we can’t. So I keep coming back to, well NVIDIA’s figured this out but people don’t want, people want a price break from NVIDIA. They do. Maybe a lot of this was, okay Jensen Huang, while you’re off there in the lunar new year and meeting the president, we need a better deal because this thing’s rumored to be thirty five thousand. It’s not a chip. We keep using the term chip. It’s a platform with software. That was another thing that people missed on DeepSeek. Platform with software. They can charge more and you can use the current plug it into the software.”
“I talked with Jensen about Blackwell. Blackwell’s video. I know that I talk too much about robots. And I know that. But if everyone gets a robot, which is the vision of the guy who runs DOGE, then we would all need a lot of NVIDIA power. Cause NVIDIA has robots that don’t walk into walls. And aren’t stupid. Let’s go back to and rewind the tape [about] why we liked NVIDIA so much. They were so far ahead of everybody else, well what happened? We found out that AMD has fallen behind. We found out the hyperscalers tended to need more than they got. We did get a DeepSeek story out of China. Which said that they didn’t spend a lot to be able to develop this product which I think is now proven to be false. That’s not just a Peter Navarro narrative, an anti-China narrative. There was a sense that maybe the Chinese lied.”
