Jim Cramer Says NVIDIA is “Very Much in Charge of its Own Destiny”

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer was focused on. Cramer said that the stock offers returns beyond what index funds can deliver. He commented:

“There’s so much money parked in index funds that sometimes we forget that those indices are made up of individual stocks. The indices certainly weren’t created for the stock of NVIDIA, though, a company with a $4 trillion market cap, that’s not at all hostage to interest rates. In fact, it’s not even hostage to its own industry as we saw today, which is why NVIDIA could make a $5 billion investment in a one-time semiconductor kingpin today, Intel, and see its own stock rally, 3.5% or $150 billion in response. You spend 5 billion, and you tack on $150 billion in market cap. Now that’s a miracle…

More important for our purposes, NVIDIA, which had seen in stock in the doldrums of late because of its China problems, broke out of that sphere of influence for the moment… There’s a lot more to NVIDIA than China, and there’s still a lot of money to be made in individual stocks, including the biggest one in the world, NVIDIA.

… Can you game NVIDIA? Okay, here’s what you can do. Stop the gaming. You can invest in Jensen Huang and his amazing team. Invest. You can let NVIDIA, a veritable index of chip companies, make you the kind of money index funds can’t ever keep up with. You can own NVIDIA and not have to trade it. I wouldn’t be so focused on NVIDIA today if it weren’t for the fact that it’s one of a handful of companies that seems very much in charge of its own destiny.”

Photo by Christian Wiediger on Unsplash

NVIDIA Corporation (NASDAQ:NVDA) provides GPUs, AI platforms, cloud services, and networking solutions for gaming, data centers, automotive, robotics, and enterprise applications.

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