NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 25, Baird raised its price target on NVDA shares to $225 from $195 and maintained an Outperform rating ahead of the company’s earnings report on Wednesday. The firm raised its revenue and earnings estimates, citing a “significant acceleration” in GB200 sell-through shipments during July. The firm expects shipment momentum to continue, with xAI shipments concentrated in fiscal fourth quarter. Furthermore, as per the analyst, GB300 remains on schedule for an initial launch in late September and is expected to deliver a substantial performance increase over GB200.
NVDA Headquarters Courtesy of NVIDIA
NVIDIA Corporation (NASDAQ:NVDA) develops computing, graphics, and AI technologies for industries such as gaming, data centers, and automotive. The company offers products like GPUs, cloud-based services, and AI platforms. It is worth noting that on August 11, Cramer said:
“This morning, we learned that the US government is planning to take a 15% cut on all the AI chips that these two companies are currently selling to China. For NVIDIA, that means a 15% cut on the H20, which was their cutting-edge chip for AI a few years ago, something they were previously banned from selling in the PRC. The president then said that NVIDIA might be getting approval to sell a next-generation chip to the Chinese, something, wow, more like their current version, Blackwell, except it won’t have as much computing power. We didn’t expect that Blackwell could be allowed in China. This was a big deal that the market completely just ignored. That was a mistake. President had asked for 20% cut of revenues, but NVIDIA CEO Jensen Huang bargained him down to 15%. That was good…
The cost of shareholders for the NVIDIA deal, as we told investing club members today, NVIDIA was selling about $8 billion worth of chips to China every quarter prior to the previous export restriction. A 15% haircut would equate to a little more than $1 billion per quarter or about $5 billion per year. Hey, that’s a big number for most companies, but not for NVIDIA. They were desperate to get this China business back by any means necessary…
From the perspective of big business, this is a great deal. Under the previous export controls, NVIDIA and AMD couldn’t sell these ships to China at all. If they can get that business back in exchange for a 15% cut, that’s a win for their shareholders.”
While we acknowledge the risk and 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 time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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