Jim Cramer on NVIDIA: “Just Resting Before it Reasserts Itself”

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer was focused on. Cramer discussed the company’s earnings and the following market reaction during the episode, as he said:

“The looming NVIDIA quarter dominated the market’s mindshare in a very negative way. So when NVIDIA actually reported after the close, it’s kind of an anticlimax. The company reported a healthy top and bottom line beat with robust guidance for the current quarter, that’s including any new Chinese business now that they can sell decent chips there. But NVIDIA’s all-important data center sales came in a tiny bit light, surprising, and frankly fitting the negative rap that we’ve been hearing. So the stock got dinged in after-hours trading. I think that’s mostly because it was up 35% for the year going into the quarter, and expectations were indeed sky high. But that’s the Charitable explanation… All in all, though, in reality, it’s a good quarter…

I want to explain why, even after this poorly received NVIDIA quarter, I think AI’s worth every penny… Now I’m hearing that what we call the hyperscalers, the companies spending fortunes on NVIDIA, you know, the ones that are writing the checks to NVIDIA, are part of the AI bubble… People are wondering whether the money being spent on NVIDIA is finally peaking and petering out. Now, I want to stipulate some things. First… the hyperscalers are run by the smartest people on Earth. Second, they have the better balance sheets than any country in the world…

Is NVIDIA fooling everyone? Is Jensen Huang fooling everyone? Are the valuations all way too big there? Listen, we heard the same thing about the dot-com survivors at the turn of the millennium… If you give up on NVIDIA now, I think you could miss a boat that’s not sinking, just resting before it reasserts itself. So I say own it, don’t trade it.”

caspar-camille-rubin-N_lrIeCWgw0-unsplash.jpg

NVIDIA Corporation (NASDAQ:NVDA) develops advanced computing, graphics, and AI platforms that provide solutions for gaming, data centers, enterprise AI, robotics, automotive technologies, and cloud services.

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. This article is originally published at Insider Monkey.