Jim Cramer Discusses These 8 Stocks & Says Trump’s Focused On His Goals And Not The Market

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders In Q4 2024: 223

After its GTC conference earlier this month, NVIDIA Corporation (NASDAQ:NVDA) is back as a regular feature on Cramer’s morning show. The host has been adamant about the firm’s share price movements. Not only does he believe that investors are erring by not taking CEO Jensen Huang’s GTC announcements seriously, but he also blames zero-day option traders for driving down the stock price. His remarks touched on both these themes:

“[Dan Ives on Wedbush warning about something have to change, Jonas cutting PT to $410 from $430 and saying it’s a top pick because firm is transitioning to AI and robotics] Well, you know what’s a highly diversified play on AI and robotics? It’s the unfathomably bad acting golden negative bear cross, NVIDIA. . . So I mean if you want AI, I’ll give you NVIDIA. You want self-drive, I’ll give you NVIDIA. And I’ll tell you, do want some NVIDIA? I’ll give you NVIDIA. That stock can’t even seem to hold 117.”

“No, I think what’s pressuring the chip sector is the endless drag that is NVIDIA. And people felt that you would have after the NVIDIA conference, that things have historically done a little well. I mean actually they do very well going in. And it didn’t happen. And now I mean when I see what’s known as these zero day. . .options pressuring NVIDIA, and people don’t think that anything could ever happen like that. That you couldn’t really have a 2.8 trillion dollar company being pressured by the options market, but it is, no one believes that except for the people who directly trade it and people who are, who clear the options. And the heavy pressure on NVIDIA is extraordinary. No company can withstand the actual repeated machine gunning of a stock. Using zero day options which we don’t factor in nearly enough. Because a lot of younger people, but also a lot of institutions are really focused on driving a stock. Look, if institutional buyers came in they could overwhelm. But right now NVIDIA is the reason why anything that is data center is suspect. I think that’s wrong. I can make a case for NVIDIA. But I know a stock that looks bad when it looks bad. And that is the ugliest stock in the chartbook. And I get that. That’s what happening.”

“You can’t build these centers. And you can’t do AI, without NVIDIA. And I think that Jensen Huang, if you actually parsed his words, you would have realized the demand is just ridiculous. He claims that they can make so many more than they could, the yield in the first quarter wasn’t that good. I think the numbers are going to inflect. I think the gross margin’s going to go from 71 to 75%, but right now the stock is gripped with all the negativity that’s captured the stock market.”