1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
Date of Cramer’s Comments: 10-10-24
Performance Since Then: -6.2%
NVIDIA Corporation (NASDAQ:NVDA) is the largest AI GPU designer in the world. Since its products are industry leaders in terms of performance, their potential demand has injected trillions of dollars into the firm’s market capital. For the latter half of 2024, NVIDIA Corporation (NASDAQ:NVDA)’s stock was tepid as investors waited to see whether its products would ship in sufficient volumes. Ahead of the DeepSeek selloff, the shares were up by 3.1% but they dipped by 17% during the day. Here’s what Cramer had said in October:
“People are just beginning to realize that maybe it wasn’t just a gaming company with some real fast graphics chips…Eventually, NVIDIA and its renaissance man, CEO Jensen, pioneered both accelerated computing and generative AI. We speak too much about the latter, not enough about the former. Accelerated computing is what makes things really work here. In other words, NVIDIA created machines that think faster than you do and soon will do almost anything better than you can do
Now, I don’t want you freaking out. We’re in charge here. We make the decisions, but AI saves a lot of time… which is why it’s such a revolutionary technology for the enterprise and it’s about to get even better because we’ll see an amazing jump on the fly thinking from generative AI when NVIDIA’s new line of Blackwell chips gets fully deployed next year. They are so powerful, so fast, these guys basically invented a chip that is so quick that it created the entire AI business outta thin air. It wasn’t possible before, but now it can do incredible things and very soon it’ll be both faster and better.
By the way, I think it’s gonna do some stuff with video that’s gonna blow you away. I’ve never seen a company have such demand for its products, including demand from Tesla, which needs Nvidia for self-driving cars… The whole thing’s remarkable and the stock’s 1072% gain over the past two years was right there for the taking. As CNBC Investing Club members well know, I do think it’s got more upside, which is why I always say own it, don’t trade it. It does put a smile on my face.”
NVDA is a stock Jim Cramer talked about in October. 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 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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