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Jim Cramer Notes “The Total Addressable Market for NVIDIA’s Products Keeps Expanding”

NVIDIA Corporation (NASDAQ:NVDA) was among Jim Cramer’s recent stock calls on Mad Money. Cramer recommended buying the stock on any dip, as he stated:

NVIDIA’s the answer to so many of the problems that these big hyperscaler companies have… This isn’t a zeitgeist play; it’s a pure earning story. Ben Reitzes from Melius Research, the man who was really on board the earliest on NVIDIA, says NVIDIA’s doing so well, yet it only sells at 15 times earnings, well shy of the average stock of the S&P 500. That’s just plain crazy. We have to wait until May 20th to see the actual numbers, but I think you want to own it ahead of time. Buy it on any dip. Hurting NVIDIA is a perception that Google and Amazon are moving away from the company, developing their own chips. The reality is that both companies are huge NVIDIA clients. They aren’t going anywhere. Reitzes is looking for OpenAI to come into NVIDIA big with its next software iteration. He says there could be many more big customers coming.

The total addressable market for NVIDIA’s products keeps expanding. It must be exhausting to be NVIDIA’s CEO Jensen Huang, who’s out there endlessly explaining the fourth industrial revolution, and how it’s all built on the back of NVIDIA. He’s constantly challenged by analysts and commentators who are so off base and they just don’t, they don’t understand the premise. I watched him have to debate a host who was talking about how good the Amazon and Google chips are. Jensen retorted that if they’re so good, why aren’t they willing to benchmark them with the organizations that measure these things? It’s NVIDIA that’s willing to be benchmarked, and they always come up aces. There are plenty of stocks to buy to participate in the fourth industrial revolution. Just remember, though, there would be no revolution without NVIDIA.

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.

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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