Jim Cramer’s Bold Predictions About These 10 Tech Stocks

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders In Q3 2024: 193

Date of Cramer’s Comments: 09-04-24

Performance Since Then: 17.3%

NVIDIA Corporation (NASDAQ:NVDA) is the ill-fate GPU stock that led the stock market selloff on Monday. The bloodbath made the shares lose nearly all of their gains made since October last year. Since Cramer’s comments quoted here, NVIDIA Corporation (NASDAQ:NVDA)’s shares are still up by 17.3%. Had the selloff not occurred, then they would have gained 36%. This rather tepid performance is part of an overall cautious approach for the stock that has persisted amidst reports of troubles with NVIDIA Corporation (NASDAQ:NVDA)’s latest Blackwell chips. Here’s what Cramer had said in September:

“A repeat of 1999 would indeed be devastating for NVIDIA and all the tech that surrounds it. As much as I think Cembalest is the best pure strategist on Wall Street—the best I’ve found—I found this piece a little harsh because we had many fly-by-night outfits spending like drunken sailors back in the 1990s. Now, though, the firm and its clients are some of the most well-endowed companies ever. The company doesn’t have any real competition, and no one is near them by their own proclamations.”

“As the company’s CEO Jensen Huang has pointed out many times, if the tech titans don’t spend, they’re out of luck when some great use cases come along, and they don’t have the infrastructure for it. Remember, Jensen has proved that the platform pays for itself very quickly. That sure wasn’t the case back in 1999, was it? Of course, the company’s stock has become a total pariah right now after this amazing quarter because the world suddenly seems convinced that AI spending will peak soon, at which point it’s all over but the shouting.”

“Stocks are getting slammed because most investors think the company’s run-up was too extreme, given that the company only reported a major upside surprise—not the kind of insanely huge upside surprise they’d come to expect. The sellers are eager to take the company back to where it was trading during the last visit to the penalty box in the first week of August, with the stock ticking as low as $90 and change.”

“I’m sure the sellers will be right back tomorrow morning after we learned tonight that the Justice Department has hit the company with a subpoena over an antitrust probe. Now, who cares? That’s standard practice. It’s shot first, second, and third. Though with the company right now, no one’s thinking, “Well, wait a second, why didn’t the Justice Department just ask them some questions?”