Jim Cramer’s Thoughts on These 5 Stocks

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

Asking how pervasive the negativity was on Tuesday, Cramer mentioned NVIDIA Corporation (NASDAQ:NVDA) and said:

“Well, we had a real test case today, didn’t we?… When you put 17,500 NVIDIAns and friends… in San Jose, you’d expect some sort of impact on the stock market or at least in the stock of NVIDIA but that sure didn’t happen. Today, we learned that nothing’s more powerful than multiple compression as NVIDIA’s stock actually slid $4 and 10 cents. It declined 3.4%. I say ouch…NVIDIA stock isn’t cheap unless everything goes right and in this climate of fear environment, it’s hard to see everything going right even for a company that is this special.”

Attending NVIDIA’s (NASDAQ:NVDA) annual GTC conference, Cramer highlighted various AI innovations from leading companies. NVIDIA’s CEO Jensen Huang presented the company’s latest chip lineup and gave a glimpse of upcoming advancements in the broader AI field. Cramer went on to say:

“So all these announcements from NVIDIA might mean everything for the future, but they meant nothing for the today… Anyway, yes, the invisible disease known as multiple compression is just that powerful and it really comes after tech stocks because they tend to be very expensive. NVIDIA stock isn’t all that pricey, but the expectations for the keynote were high. So even though it was spectacular, nobody’s gonna care in this environment.”

NVIDIA (NASDAQ:NVDA) is recognized for its advancements in graphics, computing, and networking technologies, especially its graphics processing units and the CUDA software platform.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that 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.

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