1. NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer put under the microscope. Cramer discussed the stock in detail during the episode, as he stated:
Most people don’t understand how these kinds of programs work. They’re not based on the specific fundamentals of individual companies. They’re based on intuition, a belief that the market’s paying too much for one kind of company and not, let’s say, not enough for another. Now, in order for these huge programs to work, you need to wait for something that can hide what you’re doing. The hedge funds that do these programs love camouflage. Last night, NVIDIA gave it to them by reporting a spectacular quarter, with amazing growth and a roadmap to make trillions of dollars in a very short timeframe. The gross margins were fantastic. The level of business, extraordinary. The new clients, fabulous. It was a tour de force quarter.
NVIDIA made a terrific case for the next wave of artificial intelligence, where these machines will actually be able to reason. NVIDIA’s new super chips are going to come out on time later this summer. We learned of a huge amount of business from Anthropic and OpenAI… Oh, and let’s not forget the self-driving cars, robots, and digital twins that Jensen Huang, CEO, has told you are coming. They’re here. Basically, NVIDIA gave you everything you could ever want, including terrific guidance for the current quarter.
The buyers all knew, which is why the stock caught fire last night and was really climbing. But it was all for naught. Why? Because today, NVIDIA stock became cannon fodder for the unannounced sell program that I detected from the moment the market opened. The stock started giving up points right at the opening bell, crushed by a torrent of sellers… At the end of the day, the amount of money NVIDIA’s making is extraordinary. It’s only going to get better.
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 potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 11 Most Undervalued AI Stocks to Buy Now and Top 10 Gene Therapy Stocks to Buy According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
