We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
READ ALSO Jim Cramer on Microsoft and Other Stocks and Jim Cramer’s Best Performers List: Top 10 Stocks
Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 and listed the stocks in the order that Cramer mentioned them.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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NVIDIA Corporation (NASDAQ:NVDA)
During the episode, Cramer predicted that NVIDIA Corporation (NASDAQ:NVDA) could have another decline like last quarter for which his advice was to not sell. Here’s what he had to say:
“Then after the close Wednesday, we get big and then bigger. Palo Alto Networks and Nvidia… I think that NVIDIA’s last quarter fallout, the huge decline that I told you to buy, not sell, it could occur again because there are so they’re just these crazy watch parties, the sunshine soldiers, the people who don’t even know what NVIDIA is or does.
You know, I love NVIDIA. I always say own it, don’t trade it. People don’t listen to me. When it goes down, they panic out, I’m trying to stop that. Now, I have to tell you, I think… if you don’t own it, just wait, okay. The stock’s struggling here for now. I saw some guy earlier on another of the show saying he’s worried about NVIDIA. Well, of course, you’re worried about NVIDIA, you always worry about the large ones but I can smell the trader nervousness. I don’t want you taking out a trader. Okay, let them sell and then you buy.”
As NVIDIA (NASDAQ:NVDA) prepares for its fiscal 2025 third-quarter earnings report, scheduled for November 20, it is gearing up for the release of its new Blackwell architecture. However, recent reports have raised concerns regarding the Blackwell architecture. On Sunday, The Information reported that the new AI chips, which had already faced delays, are encountering overheating issues when used in server racks designed to hold up to 72 chips.
This overheating problem, particularly when multiple Blackwell GPUs are connected together, has caused some customers to worry about the viability of their data centers and whether they will have enough time to get new systems up and running.
Despite these challenges, Cramer expressed confidence on Monday in NVIDIA’s (NASDAQ:NVDA) long-term prospects, suggesting that the recent dip in stock price might present a potential investment opportunity. He said:
“Maybe this time really is the top, and it’s all because of server meltdowns… I actually am more inclined to think you’re getting a buying opportunity in Nvidia thanks to The Information publishing a story that may simply not be that unless you didn’t know all that much and you parted with Nvidia as soon as the news came out.”
Overall NVDA ranks 11th on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.