Jim Cramer on the Magnificent Seven Stocks Plus Netflix

6. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

Cramer has been highly bullish on NVIDIA Corporation (NASDAQ:NVDA) and mentioned the growing demand for the super chip, Blackwell. Here is what he had to say:

“Now initially, NVIDIA got clubbed along with the whole market when the yen carry trade imploded. Then it came right back because that was only a temporary problem. Then NVIDIA got smacked down after its quarter, although it didn’t take out the blows from the previous sell-off. It’s been working its way back ever since. As we learned that demand for its next-generation super chip Blackwell is ‘insane’, that’s a technical term coined by Jensen, by the way. Next thing you know, the stock’s coming all the way back, but back with very few people who sold the stock. And before this, right, I mean they’re long gone and gone at much lower levels because they traded it, they sold it. Again, take this as a reminder that if you trade NVIDIA, you probably won’t be able to sell it high and then get back in low. The ship would’ve left without you. It’s too hard, people, it’s just too hard.”

NVIDIA (NASDAQ:NVDA) has emerged as a dominant force in the technology sector, particularly in AI. Over recent years, investor interest in the company has surged, positioning it among the largest corporations globally. Additionally, on October 14, as reported by TipRanks, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock with a target price of $165. He has designated the stock as a Top Pick and Buchalter noted a significant increase in the volumes of the Hopper architecture expected in the latter part of 2024, which could contribute to sustained growth and potentially better profit margins.

While he acknowledged some short-term hurdles tied to the evolving supply chain of the Blackwell product line, the enduring demand for these platforms remains strong. Any production delays are anticipated to shift revenue expectations from the first quarter to later in the year, without diminishing the overall demand.

Most importantly, NVIDIA (NASDAQ:NVDA) has reported that its Blackwell platforms are now fully operational, suggesting that prior production challenges have been effectively addressed. With units priced between $30,000 and $40,000, major corporations such as Microsoft and Meta are actively seeking these products to support their AI data centers.