We recently compiled a list of the Jim Cramer Talked About These 16 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks Jim Cramer was talking about.
Jim Cramer, host of Mad Money, shared his thoughts on the market’s reaction to the election results. He noted that the trading session on November 6 was largely influenced by a collective sigh of relief from traders who were glad the election was over. With President-elect Donald Trump set to take office, many were preparing for the shifts his administration could bring. Cramer pointed out that the market responded positively to Trump’s victory, stating:
“The market likes Donald J. Trump and it loves a peaceful transition to the next president. We got both and we had a monster-buying celebration. It was a bull jailbreak and the bears never knew what trampled them.”
Cramer reflected on the uncertainty leading up to the election, with many investors fearing a prolonged and contentious process. But with the winner now clear, Cramer argued that the market is better off knowing what lies ahead. He remarked:
“Let’s understand that many people thought we’d have a contested election, which would cause tremendous uncertainty. The fact that we already know the winner is a huge win for the stock market in itself, which makes it a magnet for new money. This election, with its vicious maelstrom of hate and fear, is finally over.”
READ ALSO Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins and Jim Cramer’s Latest Game Plan: 15 Stocks to Watch
One of Cramer’s main focuses was Trump’s proposed tax cuts, which he believes will have a substantial impact on corporate profits. Cramer emphasized that the tax cuts are expected to boost earnings, particularly by lowering corporate tax rates, which would directly increase profit estimates and earnings per share. Cramer also highlighted the importance of maintaining low interest rates for these benefits to materialize.
He cautioned that while the current environment might feel like a party, there could be risks down the line, especially as debt continues to grow. Despite these concerns, Cramer seemed optimistic, suggesting that the market could continue to rally as long as interest rates stay low and corporate tax cuts come to fruition.
However, Cramer also pointed out a potential complication and commented:
“We also have to accept that we will have another earning season right at the time of the inauguration. So we’ll have to worry about those earnings too, but not yet.”
Additionally, Cramer suggested that there could be more significant market moves in the near future, especially if President-elect Trump makes comments about the Federal Reserve that investors find unsettling. He said that such remarks could trigger a negative reaction from the market, potentially leading to a downturn before things settle again.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 6 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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Cramer said that Trump likes winners like NVIDIA Corporation (NASDAQ:NVDA) and reiterated his philosophy of “own it, don’t trade it” for the stock.
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta… Trump likes winners. He likes success stories. That means he’ll like Nvidia. Remember, Trump’s all in with Elon Musk. He knows that Musk respects Nvidia’s Jensen Huang. Good stock to own, not trade.”
NVIDIA (NASDAQ:NVDA) has firmly established itself as a dominant force in the graphics processing unit (GPU) market. As the company heads into its fiscal 2025 third-quarter earnings report, expected on November 20, it is preparing to launch its new Blackwell architecture, which it claims will be the most powerful chip the company has ever produced.
This launch, slated for the fourth quarter, is expected to ramp up production significantly, generating billions of dollars in additional revenue, according to statements made during the company’s previous earnings call in August. According to TipRanks, on November 11, UBS raised the price target on the stock to $185 from $150 and maintained a Buy rating.
The firm remains optimistic about NVIDIA’s (NASDAQ:NVDA) future performance, citing strong customer demand and positive supply chain dynamics. Based on the firm’s conversations with customers and analysis of the supply chain, UBS analysts believe that Q3 revenue will likely fall between $34.5 billion and $35 billion, with Q4 guidance around $37 billion, potentially reaching up to $39 billion when the company reports Q4 results in early 2025.
Overall NVDA ranks 12th on our list of the stocks Jim Cramer was talking about. 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.
