Jim Cramer Discusses These 18 Stocks & President Trump’s $500 Billion AI Plan

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders In Q3 2024: 193

Over the past two years, NVIDIA Corporation (NASDAQ:NVDA) has shaped into one of the most dominating technology companies in the world. Its newfound glory is entirely due to its GPUs, which form the backbone of global AI computing. NVIDIA Corporation (NASDAQ:NVDA)’s latest AI GPUs, the Blackwell lineup, have dominated its narrative recently. Investors have differed over whether the firm can ship them regularly and sufficiently to maintain market dominance. Cramer believes that NVIDIA Corporation (NASDAQ:NVDA) is ushering in a new industrial revolution. Here are his latest remarks:

“Well had there been a doubt in people’s minds about NVIDIA, which is at the same price it was in June. That NVIDIA may not have the orders it needs. Well that was ended yesterday. Because obviously this team up would want everything it could. I also think that the whole sovereign nation kerfuffle that Biden put in at the last minute with 18 friends who can get NVIDIA. That’s going to be put aside. I don’t think that there is any sense that there is any water being held by that. By the way, NVIDIA maybe crucial in something that we haven’t thought of. The President wants a smaller trade deficit with China. One way to do it is to have them have all the NVIDIA chips they want, provided they’re not used militarily. Now, you could argue how could that ever be. I think this President is trying to get everybody’s trade deficit to go to a surplus for us. And NVIDIA is the crucial way to do it.

“When you are as visible with NVIDIA as I am, you’re like a magnet. Someone came up to me, a very well capitalized outfit, saying look, we’ve got something it goes ten times faster than NVIDIA. And I you know well that’s terrific. I remember when Intel had the 386 and they were companies that had something that was ten times faster and I don’t even know where those companies went to. I think it’s scale, I think it’s the ability to be able to manufacture, 45 plants going on right now. And the idea of the payback which seems to be left out of the equation all the time. How many times has Jensen Huang said the payback is four to one the moment you get Blackwell versus my friend Michael Cembalest yesterday who’s still talking about it being a big drag on free cash flow. I am a believer that you make money when you get a NVIDIA Blackwell.”