Jim Cramer Just Discussed These 13 Stocks

2. NVIDIA Corporation (NASDAQ:NVDA)  

Number of Hedge Fund Holders In Q3 2024: 193

NVIDIA Corporation (NASDAQ:NVDA) has catapulted itself to becoming one of the most valuable chip companies in 2024. All of its gains are driven by GPUs catered specifically to compute artificial intelligence workloads. However, the high demand for these products has led to supply constraints. These constraints have created murmurs that perhaps NVIDIA Corporation (NASDAQ:NVDA) is vulnerable to alternate AI processors designed by Marvell and Broadcom or even by big technology players such as Amazon. Cramer covered these worries in detail, and he only partially subscribes to them. According to him:

“However, I think there are people who say you know what, I gotta get off this horse, it’s going down. There is not much more to it, David.

“I think you wait until, okay no, no one’s gonna want to hear this and I, you know I love the stock, but the next big data point is gonna be in the third week of March, when Jen-hsun Huang the CEO has a GTC conference. He talks about new reasons, new things that are going on in NVIDIA, what it means to have video going on, because I think video is big. Now do I think it’s going to go through to one hundred, I don’t think so but look, this is one of the great wins of all time. And I think the people just say you know what, I’m on the wrong horse Carl, I gotta be in Broadcom. And they don’t think that maybe it’s field bet, that Broadcom, Marvel Tech, and NVIDIA are all good because of the demand. We’re forgetting the demand.

“Now he [Marvel CEO] made this announcement about Amazon, I don’t think people realize what the Amazon announcement was basically saying was we’re going to use our own chips, we’re going to have custom silicon designed by Marvell, and we’re going to use NVIDIA too. And there is no, there is still no distance between NVIDIA from both sides. When I speak to Amazon, I speak to NVIDIA, no one is saying that NVIDIA is being displaced. Everyone is saying we can’t get enough of NVIDIA so we have to take action.

“NVIDIA is a stock that, as we used to say in the hedge fund world, a down stock. And we said why. Well, you know why, there are more sellers than buyers. But the fact is that the people who are selling NVIDIA right now David they don’t know the difference between Nivea cream and NVIDIA chips.

“Look, I’m comfortable with NVIDIA. This is what it does. This is what it does. And people don’t know that. They don’t understand NVIDIA.”