We recently published an article titled Jim Cramer Discussed These 7 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks Jim Cramer recently discussed.

Jim Cramer, host of Mad Money, recently shared his thoughts on the market’s movements this week, focusing on the economic data that’s shaping the outlook. He highlighted the upcoming nonfarm payroll report on Friday, noting its potential to sway market sentiment. Cramer pointed out that the market has been shaken by the persistently high 10-year treasury bond yields, which refuse to drop.

“Friday’s employment numbers need to show lower wage growth and disappointing hiring. Now that could bring down the yield in the 10-year and therefore make people feel that the Fed will be back on schedule to start cutting the rates again. We gotta get them back into that groove, you know. On the other hand, if hiring and wages remain hot, well then anything good that happens next week could be repealed.”

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The labor report is especially critical, according to Cramer, because despite the strength in sectors like autos, housing, and materials, the overall economy may still be running too hot for the Fed to slow it down as needed. He turned his attention to other economic indicators, such as the Purchasing Managers’ Index (PMI), which is offering strong signals of economic activity. Cramer mentioned a recent report, including Monday’s release of the PMI composite index, as an important barometer for the economy.

This data, he explained, provides valuable insights into how the economy is performing across different sectors, with particular attention to manufacturing, which has shown particularly strong performance. In addition to these key reports, Cramer also mentioned the implications of the Job Openings and Labor Turnover Survey (JOLTS), specifically focusing on job openings.

“I’ve been mulling over these job openings numbers and I keep thinking about how President-elect Trump might reverse the high levels of immigration we’ve seen under the Biden administration.”

Cramer warned that mass deportations could create a labor shortage that would drive wages even higher, especially if the country cannot rely on enough workers to fill the gaps. In that case, Cramer mused, “robots may be our only hope,” alluding to the role of automation in addressing potential labor shortages.

“So here’s the bottom line: It’s a light week, but still impactful, accept that people will be on edge ahead of Friday’s employment report. Still, I think you should do some buying if the market gets hammered. As we saw today, it’s not nearly as bad out there as so many think.”

Our Methodology

For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 3. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.

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).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

During the episode, Cramer mentioned NVIDIA Corporation’s (NASDAQ:NVDA) Jensen’s speech on Monday and said:

“Tech was strong all day today, you know, it’s the leader again in part thanks to the buzz around Nvidia, CEO Jensen Huang’s speech at CES on Monday night, Vegas. Right now, as I’ve stressed… I think we could be dazzled by the use cases for Nvidia’s latest chips, especially the video component. Any company that buys the platform of GPUs and software can make a fortune from it. That’s important because we keep hearing that Amazon wants to compete head-to-head with Nvidia. Something, by the way, I don’t even believe.

Customers want cheaper chips. Amazon’s trying to make them. That said, if Jensen can give his customers a four times return on investment, that’s what he’s gonna talk about and show us on Monday night: actual cases of how that can be accomplished. I doubt Amazon or anyone else could compete with that and maybe Nvidia actually goes to a new all-time high.”

NVIDIA Corporation (NASDAQ:NVDA) is a well-known name in the graphics, computing, and networking industries and its graphics processing units and the CUDA software platform have become crucial for AI infrastructure. At the CES 2025 event, the company revealed several new products.

CEO Jensen Huang presented innovations targeting AI applications, including those designed to advance robot and vehicle training, along with new gaming chips and a debut desktop computer. One of the highlights of the event was the introduction of Cosmos foundation models, a new AI model. These models, which generate photo-realistic video, offer a more cost-effective method of training robots and self-driving vehicles compared to traditional data usage.

Additionally, Huang unveiled the new RTX 50 series gaming chips, which incorporate NVIDIA Corporation (NASDAQ:NVDA) Blackwell AI technology, a key driver behind the company’s growth in data centers. Huang also provided a financial outlook for NVIDIA’s automotive hardware and software division, forecasting revenue of $5 billion for fiscal 2026, up from an expected $4 billion in fiscal 2025.

Overall NVDA ranks 1st on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.

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Disclosure: None. This article is originally published at Insider Monkey.