NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks that Jim Cramer shared his take on. During the episode, Cramer said that he is not changing his “tune” around the company, as he said:
“No matter what, though, I still believe in AI as the fourth industrial revolution, and I think most of these stocks will be worth buying once their valuations come down to less lofty levels. And of course, I’m including NVIDIA, which people ask me about all the time. And I say the same thing. I say, own it, don’t trade it. I’m not changing my tune.”
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 discussed the company’s China business during the December 9 episode and said:
“Now that our government just agreed with Jensen and is allowing NVIDIA to sell the Chinese a very high-powered chip, the H200, only one generation behind the current Blackwell line of chips, and worth a great deal in the market, nobody cares. In a novel approach, the federal government’s putting a 25% surcharge on the product, but I don’t think that’s going to deter any sales. And what happens? Wall Street shrugs. The media is almost universally filled with doubts about China even wanting these chips, which is totally untrue… That’s why the stock’s doing nothing. It fell 58 cents today to close at $184.97 because of these untruths.
Now, here’s what I know. The Chinese want these H200 chips badly. The government won’t crow about it because… they have domestic competitors that they’ve been funding, they’re trying to play catch-up with NVIDIA, that the government is favoring the domestic competitors is pretty obvious, but we know still the government wants our products. I even think the president’s going to push for NVIDIA sales, and the Chinese will ultimately be big buyers, but nobody cares. Keep in mind, just a few months ago, the media was acting like the Chinese shutout was the seminal issue facing NVIDIA, an existential threat… Now that they’ve got a big win, it doesn’t matter.
Why? Because NVIDIA is what’s known as a retail stock owned heavily by you, by individuals who are easily scared, and small institutions take the cue from Wall Street, which was lukewarm on the deal. Do you know why I say own NVIDIA, don’t trade it? Because this kind of thing has driven regular individual investors, including perhaps you, out of the stock since it was trading at two bucks when I recommended it, and that was a few years ago… Should you stop believing the critics? The history of NVIDIA says you should. I’m going with history. History’s a strong ally.”
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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Disclosure: None. This article is originally published at Insider Monkey.
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