We recently published an article titled Jim Cramer Discusses These 18 Stocks & President Trump’s $500 Billion AI Plan. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer had a lot to say about a lot of stocks. Along with stocks, he was also full of comments about the new Trump administration and how it’s different from the previous one. Cramer shared, “If you go back over the councils that were disbanded post-Charlottesville, what you would see are a lot of traditional industrialists and drug companies.” According to him, “These were the people that were not drawn to, by Elon Musk. Elon Musk has changed the equation” to increase the role that technology companies and executives are playing this time around.
Commenting further on Musk, Cramer shared, “Now, by the way, there’s a lot of talk now about where is Elon Musk?” This means wondering where he is “in terms of having people in powerful positions say, in the Defense Department.” Cramer believes that Musk “doesn’t seem to have them” and added, “If Musk wants to be meaningful, I don’t want a seat at the table, I want a table.”
The CNBC host also mentioned some industries that will benefit from AI. As part of a discussion about the returns from the multiple billions of dollars that firms have invested into AI, Cramer cautioned not to “forget healthcare.” He believes “Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
Cramer also shared his thoughts about the breadth of market performance during the day. While markets were rising, he noted, “Yet the S&P oscillator I follow, [inaudible] is slightly overbought, there’s a lot more room.” Cramer believes “there’s a considerable part of the market that has done nothing. Nothing for years. And that’s coming on.” He doesn’t like small-cap stocks either. “And I’m not a small cap aficionado,” Cramer commented. He believes, “That stuff doesn’t work. People always try to chin that up. And then somebody sells a big small cap derivative.” The host added that instead of small-cap stocks, he likes “companies that frankly, what we, you know we didn’t think all that much of the second tier tech companies that are really taking off. The semis that haven’t done anything lately.”
As for President Trump, Cramer believes that he needs to look at insurance costs that affect a large number of Americans. According to him:
“The President has to take a look at these issues. Because this is where the, the copay, your insurance, your group insurance, your property, casualty insurance. That’s where the President’s going to put it. If he wants to put a stake in the inflation. He goes after the pharmacy benefits managers.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on January 22nd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
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.”
Overall NVDA ranks 2nd on our list of the stocks Jim Cramer recently discussed. 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 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.