Jim Cramer Thinks These 10 Stocks Deserve Your Attention

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors: 179

Jim Cramer questioned whether artificial intelligence is still a hot topic, given recent trading patterns. He pointed out that stocks associated with AI, including NVIDIA Corporation (NASDAQ:NVDA), a key player in the AI space and a name in his investment club—have dropped nearly 14% over the past five sessions. This decline raises doubts about current investor interest in AI-related investments.

“Does anyone care about artificial intelligence anymore? Seems fair to ask considering the recent trading in stocks lumped into the AI trade, including key enabler and fellow Club name Nvidia, which is down almost 14% in the past five sessions.”

A positive outlook on NVIDIA Corporation (NASDAQ:NVDA) is supported by its impressive financial performance and leadership in key areas like artificial intelligence (AI) and data centers. In Q2 FY2025, NVIDIA Corporation (NASDAQ:NVDA)’s revenue surged 122% year-over-year to $30 billion, with net income increasing 168% to $16.6 billion. This growth was driven mainly by a 154% rise in data center revenue, reaching $26.3 billion, due to high demand for NVIDIA Corporation (NASDAQ:NVDA)’s advanced Hopper GPUs used in AI applications.

NVIDIA Corporation (NASDAQ:NVDA)’s leadership in AI is further highlighted by its upcoming Blackwell architecture, expected to boost revenue even more. The gaming segment also performed well, with a 16% revenue increase to $2.9 billion, thanks to the versatility of its RTX GPUs, which are used for both gaming and AI tasks. NVIDIA Corporation (NASDAQ:NVDA)’s commitment to returning value to shareholders is clear with its $50 billion share repurchase program, showing strong confidence in future growth.

Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving.

The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”