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Jim Cramer Recommends Buying Nvidia (NVDA) on ‘Inevitable Pullbacks’

We recently published a list of 10 AI Stocks Analysts Are Focusing On These Days. In this article, we are going to take a look at where Nvidia Corporation (NASDAQ:NVDA) stands against other AI stocks analysts are focusing on these days.

Dennis Unkovic, a partner at Meyer, Unkovic & Scott, said in a latest program on CNBC that DeepSeek is the result of President Xi Jinping’s policy of prioritizing AI and tech research over the past few years. The analyst believes DeepSeek is the response of China to American tariffs.

“Today, if you take technology, maybe two-thirds of it is Western and one-third of it is Chinese. It’s clear to me that what the Chinese want to do is move the needle so they’re at least 50/50. What this means…. in the future, is you’re going to have a country that’s going to have to say, what kind of technology do I want to adopt? Is it technology from the West, or is it technology from China? So I think this is a strong opening salvo of the Chinese to the U.S., saying, if you want to put tariffs on me, this is the way we’re going to go.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 AI stocks that are trending amid the DeepSeek-triggered selloff that rocked the markets. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? 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).

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors: 193

A couple of weeks ago, Jim Cramer discussed what 2025 could hold for Nvidia Corporation (NASDAQ:NVDA) and reiterated his bullish view on the stock. Cramer analyzed Nvidia Corporation (NASDAQ:NVDA)’s stock move after the CES tech show and recommended investors to buy the pullbacks:

“The new projects are way ahead of any other company, and this new Industrial Revolution belongs to Nvidia. That doesn’t mean the stock can’t go down; it just means you can happily buy the inevitable pullbacks. Although, when they do happen, remember they tend to be sizable and brought about by scared shareholders who aren’t sure exactly what Nvidia makes other than sparkling leather jackets and mini Jensens.”

Infuse Asset Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:

“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”

Overall, NVDA ranks 4th on our list of AI stocks analysts are focusing on these days. While we acknowledge the potential of NVDA, our conviction lies in the belief that under the radar 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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