Jim Cramer on NVIDIA: “It Is Being Slaughtered Like Everything Else”

NVIDIA Corporation (NASDAQ:NVDA) was among the stocks Jim Cramer commented on, saying that tech stocks cannot be trusted to lead anymore. Cramer noted that the company stands to benefit from the upcoming IPOs. He said:

Many of these tech companies are coming public because they need money to build out their data center networks. It’s telling that the one company with a buyback that’s cheap that will actually benefit from all these IPOs is NVIDIA, and it is being slaughtered like everything else. That’s the one to buy. That’s the one that snaps back first out of this morass.

Photo by Christian Wiediger on Unsplash

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. Cramer mentioned the company during the June 8 episode and commented:

All these countries are buying NVIDIA’s wares too, and they’re not looking for a quick return. Right now, they’re 14% of the business. That could rapidly become much bigger, and that number doesn’t include what’s in the pipe. I think that number will be substantially higher this time next year, enough to allay the fears that some hyperscalers just don’t want NVIDIA at all…

Are the chips expensive? Can they generate a good payback? I guess it depends on who you ask, but real countries are buying these chips in droves for their sovereign AI programs, and that alone will lessen NVIDIA’s dependence on a handful of major hyperscalers. I’m not changing my view; I still say, own NVIDIA, don’t trade it. But with the upcoming wave of mega IPOs, it’s going to be tough for anything tech to stand out in the near term, even a company as tremendous as NVIDIA, which is the most important stock in this entire market.

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