We recently published 9 Stocks On Jim Cramer’s Radar . NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.
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Cramer’s remarks about NVIDIA Corporation (NASDAQ:NVDA) were interesting since they were made before the firm’s second-quarter earnings release. The shares have lost 4% since the earnings, as NVIDIA Corporation (NASDAQ:NVDA)’s data center revenue missed analyst estimates and uncertainty persisted about the China GPU sales. However, ahead of the earnings, Cramer warned that the China sales debate was noise and investors should focus on GPU profitability for NVIDIA Corporation (NASDAQ:NVDA)’s customers instead:
“He wanted 20, Jensen got it down to 15.
“[On how price targets grew at the fastest pace all year ahead of the earnings] Okay, so I’m going to deviate from the orthodoxy. Right now the orthodoxy says, what’s demand China, what’s demand China, no, no. It’s about the total cost of ownership. Is NVIDIA priced too high for its customers to make money? That’s the issue. That’s the only issue you need to worry about.
“So David, I think the issue here is not China. It’s, has NVIDIA gotten too expensive, or, are we going to hear like it’s the usual, Jensen Huang’s going to say look, if you can get a chip that can reason, well good luck, go ahead, go get the one that can reason.
“The Chinese chips, when we hear what Jensen, I think Jensen’s going to make a case, which he doesn’t even need to make, just saying, listen, you don’t need em? You don’t want em? Go ahead, make my day.
“Yeah cause people are looking for this China number, and I think that if they’re looking for the China number, it’s not going to be about that. It’s going to be about how much you make, how great it is to get one of their chips and why it’s got that ratio. Because the hyperscalers are under a lot of fire in the media for spending too much on NVIDIA. And I think that if you listen to that call tomorrow night, then we won’t have the cross currents. It’s going to be like, holy cow, how do I get one of these?”
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Disclosure: None. This article is originally published at Insider Monkey.
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