We recently published an article titled Jim Cramer Says AI Is Back & Discusses These 10 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on how market sentiment towards AI appeared to be changing. “Yeah look, this is a moment where, if you have AI, we are now saying it’s good,” he said. “Remember we were sick of AI for a while and now AI’s back,” Cramer added.
He also commented on the current tensions between the US and China regarding AI and overall trade. The US has restricted sales of advanced AI chips to China, and to Cramer, the current environment “feels so much like Russia and United States from the Khrushchev time on, it really does.” He added that US technology was superior to the Chinese, and when co-host David Faber pointed out that China was pushing out a lot of STEM graduates, Cramer replied: “We’re four times smarter than they are. Our schools. Four times better.”
The US AI chip sanctions have included restricting all but 18 countries from being able to acquire the latest AI chips. The laws were introduced under the Biden administration and Cramer’s been their critic. When Faber asked him to explain the rules, called ‘Diffusion Rules,’ Cramer outlined:
“Okay so Biden picked 18 friends. 18 friendly nations that were allowed to get all the chips that they . . and then there was the next group, which was the not so friendly, which when look at, is a lot of EU countries which I always thought were friendly because of NATO, that kind of thing. . .Iceland, Mexico, not in there. And then there’s just the enemies list.”
Cramer added rather cryptically: “And some people now feel that they’re going to offer licensing for a country which would really be bad. Worse than what Biden did.”
He added:
“No they have got to get that changed because. . .if you go check, Jensen Huang did this . . .he did this huge tour, all around the world, to all these countries that are basically going to be denied and that are not friendly.”
As for the impact of tariffs on economic growth, Cramer believes: “Well, we gotta see, this next quarter is the quarter where, everyone is so concerned.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on May 1st.
For these stocks, we also mentioned the number of hedge fund investors. 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 In Q4 2024: 223
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU designer whose stock has struggled this year. Investor concerns about the demand for AI GPUs and growing US restrictions against GPU sales to China are some of the factors that have impacted the stock. Cramer’s previous remarks have defended NVIDIA Corporation (NASDAQ:NVDA) and asserted that the firm will experience sizeable demand. Here are his recent thoughts:
“And that and the fact Jensen Huang hasn’t said a thing other than the President and the stock is finally getting out of its way.”
“Well how about the fact that Jensen Huang said the whole time they’re buying, they’re ordering, they’re ordering, and people didn’t care what Jensen’s saying. He was out of favor. And then Michael Intrator comes in and says they’re ordering, they’re ordering, what journalist had decided to sabotage this thesis?” “And they’re, both Microsoft and Meta have one single problem that the liars who used, who come on air all the time, maybe they’ll realize they’re lying, maybe they’re just brainwashed. These guys all need more NVIDIA, They all need more data center. I mean that was the theme. I thought the theme was there’s too much NVIDIA and there’s too much data center. David, there was a false narrative that started ever since. . . the DeepSeek Sputnik. And now you have Jensen Huang, explaining to President Trump, how you have to be able to have more countries and we don’t know whether he’s going to win.”
Overall NVDA ranks 3rd on our list of the stocks Jim Cramer recently discussed. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center