Jim Cramer Explains Why He Sticks to an “Own It, Don’t Trade It” Strategy for NVIDIA

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer’s radar. A club member asked in what case does “disciple trumps conviction” change to “own it, don’t trade it.” In response, Cramer said:

Alright, now, these are contradictory, okay, and it’s really difficult. Own it, don’t trade it… directly contradicts discipline trumps conviction. So you take a day like today, when NVIDIA’s down really badly, and yesterday, when NVIDIA was down really badly, discipline should say that you should sell some NVIDIA because there’s something wrong. But if you have conviction and you really believe in it, then you need to stand pat, and if it finally goes even lower, you need to buy some. You can make this kind of decision about one or two stocks. If you have a portfolio of things that you own, don’t trade, you’re going to lose a lot of money. We have picked NVIDIA, and we have picked Apple. Those have been our two favorites, and they’ve been right. Was it a painful day today? Yes, because we have an own it, don’t trade it philosophy, but it has made us money on those two. Anything else, we’re willing to sacrifice.

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. We discussed Wedbush’s recent price revision on the stock, which you can read here.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.  Follow Insider Monkey on Google News.