We recently published a list of Jim Cramer on These 9 Stocks Recently. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discussed recently.
On Wednesday, Jim Cramer, the host of Mad Money, shared his thoughts on the importance of recognizing the scale of opportunity when evaluating a company.
“Sometimes I wonder that I’m doing a big disservice to you as a viewer when I talk about earnings per share or upside surprises or possible buybacks, dividends. I wonder if I’m failing you for focusing on what feels like the minutiae right now.”
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According to Cramer, there are instances when the opportunity at hand is so vast that the smaller elements seem insignificant, and nowhere was this more apparent than at NVIDIA’s annual GTC event. While he usually focuses on the larger game, one in which every player stands to win, Cramer said that he would rather talk about the finer points of individual stocks.
At the event, Cramer emphasized that the conference was less about today’s trends and more about what lies ahead, especially in terms of how companies could transform industries by embracing GPU kingpin’s cutting-edge technology. He pointed out that the real shift happens when companies, not consumers, adopt this technology.
“Notice I said if other companies embrace it, not you, not the consumer and that’s hard to bring light. We’ve gotten used to consumer-oriented tech conferences for years.”
The company’s work, he argued, is not aimed at the everyday consumer but at businesses and enterprises, which adds a layer of complexity in communicating its value. Cramer noted that while the focus on the enterprise might seem challenging, it is also a double-edged sword. On one hand, it is a tougher sell to individual investors, many of whom hold stocks but do not fully understand the significance of enterprise-oriented stocks. The lack of understanding, Cramer suggested, often drives investors to sell off shares in companies when their performance dips, as has happened recently. He added:
“The good news, the enterprise is much bigger than the consumer so it’ll produce much bigger earnings per share. Catering to the corporation is typically a much better business model than catering to the individual.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 19. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
While at NVIDIA Corporation’s (NASDAQ:NVDA) annual GTC event, Cramer mentioned the company and said:
“See, NVIDIA facilitates the part of the A of AI that I believe will take over America and the world. They’re transforming the economy from one that’s run by people into one where people manage machines… I know I haven’t been able to convey the excitement people feel about NVIDIA here because it’s hard to express in terms of earnings per share. In the short term, it’s absolutely about earnings, but longer term, as Jensen Huang says, it’s about the sheer size of the opportunity, the AI opportunity.
So let me say this, in my 45 years of examining companies, I’ve never seen a business with this much opportunity. Could this nearly $3 trillion company one day be worth, say $10 trillion? Sure, why not? I’m not doubting it. Or if you want this distillation, plain and simple, NVIDIA, own it. Don’t trade it.”
NVIDIA Corporation (NASDAQ:NVDA), recognized for its innovations in graphics, computing, and networking technologies, is experiencing substantial growth driven by its GPUs and the CUDA software platform, both of which play an important role in AI infrastructure.
Overall, NVDA ranks 1st on our list of Jim Cramer discussed recently. While we acknowledge the potential of 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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Disclosure: None. This article is originally published at Insider Monkey.