Jim Cramer’s Bold Predictions About These 15 AI Stocks

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders In Q3 2024: 193

Date of Cramer’s Comments: September 4th, 2024

Performance Since Then: 30.7%

NVIDIA Corporation (NASDAQ:NVDA) is Wall Street’s favorite AI GPU stock we mentioned in our introduction. Its entire narrative is built on AI data center spending and the nascent humanoid robot industry. NVIDIA Corporation (NASDAQ:NVDA)’s shares have gained 30.7% since Cramer’s remarks making them rank low in performance terms when compared to some other stocks in our list.  The tepid performance is due to cost overruns and supply constraints of the Blackwell GPU. NVIDIA Corporation (NASDAQ:NVDA)’s shares dipped by 17% during the DeepSeek selloff. Here’s what Cramer has said about the stock in September:

“What about tech weakness as a recession signal? I keep hearing Nvidia may have missed its quarter due to economic softness. Let’s put that rumor to bed. The issue wasn’t demand; it was Nvidia’s inability to produce enough of its high-end Blackwell chips due to supply constraints. This wasn’t a demand issue.”

“Now, let’s address the overblown narrative surrounding Nvidia’s stock drop, which wiped out $279 billion in market capitalization. In isolation, that sounds terrifying, but keep this in perspective: Nvidia started the year with a $1.22 trillion market cap and soared to $2.93 trillion by the end of August. Yesterday’s drop to $2.65 trillion? Sure, it’s a big number, but in the context of a stock that’s up over 100% this year, it’s not as catastrophic as it seems.”

“This wasn’t the first time Nvidia’s market cap has dropped over $200 billion in a day, and it likely won’t be the last. Yet, I know what you’re thinking—Nvidia’s stock is on fragile ground. That’s fair. There are still far too many investors who don’t understand what Nvidia does or how it profits from the brainpower of CEO Jensen Huang and his team.”

“The stock can’t stabilize until these weak shareholders sell out. Meanwhile, we’re waiting to see how quickly Nvidia can get its Blackwell chip rolling and improve gross margins—the real reason for the stock’s recent pummeling.”