Jim Cramer Discussed 5 Stocks Like NVIDIA and FedEx and the Threat of Oversupply in the Market

2. NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) was among the stocks Jim Cramer discussed during Mad Money, as he called the growing wave of stock offerings and debt issuance a threat to the bull market. Cramer explained why one should own NVIDIA and not trade it after its massive decline. He commented:

Now, why don’t I tell you to just throw in the towel? No, I’ll tell you why. Because it looks to me that we’re still at equilibrium and the buyers still have some spare cash. We just had a gigantic decline in semiconductors of all kinds, including the unwinding of many parabolic moves. What I told you, gotta be out of those, right? You gotta sell on the way up. And we got a hopeful footing today. Plus, today’s big leader was a stock that just shed $1 trillion in market capitalization, and that’s the stock of NVIDIA. I can’t tell if it ran because it’s so darn cheap on earnings- one of the cheapest stocks in the entire S&P when gauged against its growth rate or because of an unconfirmed story: the Chinese government has greenlit some sales of a high-powered NVIDIA semiconductor. Now, I think that you should own NVIDIA, not trade it. And if you buy it, please don’t buy it because of Chinese considerations. Nothing from China is in the numbers.

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.