We recently published a list of Jim Cramer Discusses These 8 Stocks & Says Trump’s Focused On His Goals And Not The Market. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer mentioned that selling due to pre-market futures activity is not a wise move. He added that President Trump’s approach of making big announcements on the weekends also leads to traders positioning themselves:
“But look, we’re looking at the futures, again, if people want to go sell everything because they see the futures, that historically is not been a really great way to go. It is Friday, we have a lot of news that always comes out on the weekends these days. Again, if you do not like Trump, you don’t want to own stocks. If you like Trump, you’re probably thinking this is a pretty interesting level.”
Cramer added that the Trump administration’s announcements and decisions are geared towards the President’s objectives and goals and not the stock market. “And I think that it’s not like you’re going to hear from the administration you know what we look at the stock market we’re going to go easy. That’s not their thing,” he said. “Their thing is to say we’ll even sacrifice the stock market to get what we want and then we’ll look to see what happens. But I have no illusions,” he added.
Commenting on the recent price action of the stock of the world’s leading AI GPU designer, he outlined that the stock “is pulling down all the tech. And that’s why I think if you didn’t have such bad numbers in housing, and bad numbers . . the tape is very negative. But I can make the case that right now if you look away from tech there’s some real bargains here. It’s just we keep losing bull markets.”
The CNBC host also commented on how it’s difficult to publicly make predictions about the stock market and whether there’s time to buy stocks:
“I said last night in my close, that if you came on our air, and you said to buy ahead of April 2nd, and the market gets killed on April 3rd, you will look like the biggest idiot in the world. Because there’s such a thing called YouTube and they can run you endlessly. So you can’t stick your neck out. Do I ever want to own some stocks? But I’m not sticking my neck out, because I don’t want to be constantly bombarded by YouTube which just says, you know what, this is a good opportunity because it makes you too much sound like buying stocks ahead of the Great Depression. There’s plenty of time to buy stocks. There’s plenty of time. But I do think that we’re in a void ahead of April 2nd. Then we have to look at it. Does that mean it can just go down endlessly? I don’t know Sarah, it’s conceivable.”
As for the tariffs, one reason why markets are roiled is because of uncertainty. According to Cramer:
“If the government is going to put through tariffs, no one will know what to do. And I think that’s part of the chaos. It’s not like they figured out how to be able to make it so that if you’re coming in from Mexico, you know how to pay. If you’re flying in from China, you know how to pay. I think the government right now should be working on schedules. And figuring out who is going collect it.”
Finally, he urged viewers to not give up. Commenting on markets being down for the week and equal weight delivering higher returns than market weight, he shared:
“If you have a broadening out, that gets away from Mag 7, you’re going to have a healthier economy. People aren’t used to that. People are so used to stocks going higher. . . .But the fact is the vast majority of stocks are doing okay, it’s just that you don’t see it because we’re stuck in an index that has heavy tech tells me, you know look, don’t give up, don’t give up. Giving up may, you may, you may get hit for another five to seven percent as we get to April 2nd.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on March 21st.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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.”
Overall, NVDA ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
