Jim Cramer’s Exclusive List: 10 Stocks to Monitor Closely

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors: 179

Jim Cramer believes that NVIDIA Corporation (NASDAQ:NVDA)’s recent revenue shortfall is primarily due to production delays for their new AI chip, Blackwell. He emphasizes that the demand for this chip remains extremely high, and NVIDIA Corporation (NASDAQ:NVDA) is making progress in addressing the supply issues. Cramer doesn’t see this as a significant setback for NVIDIA Corporation (NASDAQ:NVDA)’s overall performance.

“Now, I don’t see much evidence of this, though the bears will point to NVIDIA Corporation’s failure to report a spectacular revenue beat. But that only happened because their new AI chip, Blackwell, got delayed. They’re having trouble producing it at scale, which is totally reasonable. But they’ve basically solved the problem now. It’s a supply problem, not a demand problem. Demand is off the charts.”

NVIDIA Corporation (NASDAQ:NVDA) offers a strong bullish case, supported by its outstanding financial performance and leadership in AI and GPU technology. In Q2 FY2024, NVIDIA Corporation (NASDAQ:NVDA) posted remarkable earnings, with revenue soaring to $13.51 billion, a 101% year-over-year increase, largely driven by booming demand for AI and data center products. Notably, data center revenue surged by 171% to $10.32 billion, as businesses ramped up investments in AI infrastructure.

NVIDIA Corporation (NASDAQ:NVDA)’s strategic partnerships with companies like VMware Inc. (NYSE:VMW), Snowflake Inc. (NYSE:SNOW), and Hugging Face further bolster its position in the AI ecosystem, while its H100 GPUs continue to set benchmarks in AI model training. New product releases, such as the GeForce RTX 4060 and AI Workbench, reinforce NVIDIA Corporation (NASDAQ:NVDA)’s growth across multiple sectors. Looking forward, NVIDIA Corporation (NASDAQ:NVDA) projects even stronger results for Q3 2024, with expected revenue of $16 billion and gross margins between 74.8% and 75.5%.

Analysts remain highly optimistic about NVIDIA Corporation (NASDAQ:NVDA)’s future, driven by its technological dominance and the expanding global demand for AI. This combination of innovation, strategic partnerships, and market leadership makes NVIDIA Corporation (NASDAQ:NVDA) a compelling investment opportunity.