1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: 8-20-24
Performance Since Then: 7.73%
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU designer. Since OpenAI publicly unveiled ChatGPT, the firm’s shares have gained more than 700%. Yet, since their July peak, NVIDIA Corporation (NASDAQ:NVDA)’s shares have added just 1.62% as investors wait to see how its Blackwell GPUs perform and whether any rivals pop up. The stock has also been hit with speculation of rivals stealing NVIDIA Corporation (NASDAQ:NVDA)’s AI GPU market share due to supply constraints and high prices. NVIDIA Corporation (NASDAQ:NVDA)’s stock dipped by 3% in December after Broadcom shared that it can earn as much as $90 billion in AI revenue by 2027. Here’s what Cramer said about the firm in August:
“I almost feel like you can guess it—it’s Nvidia. It’s the king, and the rest of the market is made up of its pawns, marching to Nvidia’s drum. Remember this morning when I was on the call and said, “Look, Nvidia is almost too important. There’s too much pressure on Nvidia—can it sustain it? I don’t want Nvidia to be Samson.
“Take a look at this daily chart of Nvidia, going back to February. By the way, Larry, who advised selling Nvidia just before it peaked in the spring, predicted the stock would rise again in late May. Larry and his video calls have closely tracked the stock’s short-term cycle in red, which has followed the share price surprisingly well.
“Unfortunately, the short-term cycle now projects that Nvidia should peak sometime next week, leading to a sell-off that may extend through mid to late October. Nvidia reports next week, and the long-term cycle indicates a bottom around the same time. Given that Larry sees Nvidia as the lynchpin of the market, it makes sense that the cycle forecast predicts a downturn for Nvidia, aligning with expectations for the S&P 500.
“Yes, Nvidia is that influential. The chart interpreted by Larry Williams suggests that we might experience some pain as August ends, which could continue through mid to late October. I hope he’s wrong this time, but it’s wise to consider his analysis seriously. For my money, there’s a good chance he could be right, especially if Nvidia’s outlook isn’t strong.”
NVDA was a semiconductor stock Cramer mentioned in August. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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