We recently published a list of Jim Cramer Tells Viewers To Not Trust Billionaires & Discusses These 11 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks Jim Cramer discusses.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on the potential impact on Wall Street from President Trump’s potential actions against Denmark, Panama, and South Africa. Amongst other actions, the President has vowed to make Denmark’s Greenland territory a part of the US and threatened to cut funding to South Africa over allegations of land confiscations.
Cramer believes that the “street sells” in response to these actions. He stated “That’s what happens. I’m not in any hurry to buy anything. We just were at a high. We had some big turmoil in tech as it was. We got a lot of quarters this week.” However, while the absolute near-term outlook might be uncertain, all sectors aren’t bad. According to Cramer “The only stuff I would think about buying are the drugs, medical device. Because their business, for the most part, not made in China, not made in Mexico. So those are the ones.”
One outcome that was clear from the November election campaigns was that President Trump differs significantly from President Biden when it comes to policy. However, he might continue one aspect of the previous administration. Cramer shared that when it comes to drug prices “Remember, the IRA [Inflation Reduction Act], under Biden, they did lower the prices. I think that’s something that President Trump would continue to do.” He also believes that “It’s a bit of a canard, the drug companies charge a lot here.”
One interesting discussion during the show surrounded hedge fund billionaire Paul Tudor Jones‘ comments about the general economic climate being “precarious.” Cramer took issue with Jones’ word choice. He started by outlining “I want to point out that once again, we have billionaires on. And billionaires always say it’s incredibly precarious.” As a result, Cramer pointed out that “People at home therefore sell and they miss great opportunities to buy because they hear that it’s really precarious from someone who’s a billionaire so therefore it is.”
However, the CNBC TV host urged people to keep investing as “you can’t make money listening to a billionaire because they already have made money.” When asked whether his advice meant that he was encouraging stock buying at a time when markets were dipping he replied “No, look I’m not saying to buy. I’m just saying that’s a very tough word, precarious makes it sound like that we are in a systemic moment. I save that for 2007, 2008 when we were precarious.”
Comparing the President’s current administration to the previous one he commented:
“I think that the president gave us last time some tax cuts ahead so you kind of felt that there was some good things happening. Here he comes up with this first which makes it feel like that you justify what he said on Friday when he said he didn’t care about the markets. Ultimately, David, he does care about the markets. And I don’t think he wants them down badly.”
Cramer also speculated that if tariffs make Canadian oil more expensive then US producers could be incentivized to produce more. He doesn’t “Think they’re going to produce much more because that’s their whole . . .they’ve all tried to keep their production down because they want prices up. That’s what they do.”
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 February 3rd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU company whose shares were dealt an unbelievable blow earlier this month. The stock bled 17% of its value during the DeepSeek selloff and is down by 14% year-to-date as investors re-calibrate their estimates about the amount of spending required to set up AI models. NVIDIA Corporation (NASDAQ:NVDA) is a regular feature of Cramer’s shows. Throughout this year, he has insisted that the firm is ushering in an industrial revolution and criticized sanctions levied against its products by the US government. Here are his latest remarks about NVIDIA Corporation (NASDAQ:NVDA):
“[On Trevor Noah and NVIDIA] That sent chills through me because that meant that there isn’t an area that doesn’t own NVIDIA. And that kinda has to end before you can buy it.
“NVIDIA did everything they were told to do. And they have evidence that Singapore did not. . . they have actual evidence of where Singapore put their chips. But I think that this company has now been footballed so to speak. When I meet people, they own it. Now I’m not trying to, I don’t want people to lose money. But I think there is a cohort of people that doesn’t know what NVIDIA does. That’s worried about DeepSeek. I’m not as worried. I do think that the CUDA platform they have is going to come out fine. And that the more GPTs there are, they are a winner. But they are in quiet period. And during quiet period people get very nervous and they sell. Imagine a lot of work on NVIDIA this weekend, then you watch the Grammy’s, you say well look, jeez all my work was nullified by a guy who some people regard as a comedian who mentioned it. I don’t want the broad notion, NVIDIA is a froth stock in a sense that everybody owns it that I talk to. But it’s a great company. And I think ultimately it will be a winner but it has to be a loser first before it’s a winner.
“[on a 24% drawdown] That may not be enough, no, it may not be enough because you really have to shake out people. I mean that’s what happens. When you have a really great company that everybody is in and you don’t have a lot of people know what it is, that is a recipe for even further selloff. And then, buy. Because it’s going to win because nobody’s close to them. Nobody.
“But remember, they’re moving past the 200 and the new one Blackwell. . .there’s going to be a lot of different companies that have a better than DeepSeek. I think that Google’s better than DeepSeek.”
Overall, NVDA ranks 3rd on our list of stocks Jim Cramer discusses. 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. 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 the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.