Jim Cramer Says “The History of NVIDIA Says You Should” Stop Believing the Critics

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently commented on. Cramer said that the “Chinese will ultimately be big buyers” of NVIDIA chips, as he commented:

“Now that our government just agreed with Jensen and is allowing NVIDIA to sell the Chinese a very high-powered chip, the H200, only one generation behind the current Blackwell line of chips, and worth a great deal in the market, nobody cares. In a novel approach, the federal government’s putting a 25% surcharge on the product, but I don’t think that’s going to deter any sales. And what happens? Wall Street shrugs. The media is almost universally filled with doubts about China even wanting these chips, which is totally untrue… That’s why the stock’s doing nothing. It fell 58 cents today to close at $184.97 because of these untruths.

Now, here’s what I know. The Chinese want these H200 chips badly. The government won’t crow about it because… they have domestic competitors that they’ve been funding, they’re trying to play catch-up with NVIDIA, that the government is favoring the domestic competitors is pretty obvious, but we know still the government wants our products. I even think the president’s going to push for NVIDIA sales, and the Chinese will ultimately be big buyers, but nobody cares. Keep in mind, just a few months ago, the media was acting like the Chinese shutout was the seminal issue facing NVIDIA, an existential threat… Now that they’ve got a big win, it doesn’t matter.

Why? Because NVIDIA is what’s known as a retail stock owned heavily by you, by individuals who are easily scared, and small institutions take the cue from Wall Street, which was lukewarm on the deal. Do you know why I say own NVIDIA, don’t trade it? Because this kind of thing has driven regular individual investors, including perhaps you, out of the stock since it was trading at two bucks when I recommended it, and that was a few years ago… Should you stop believing the critics? The history of NVIDIA says you should. I’m going with history. History’s a strong ally.”

Photo by Javier Esteban on Unsplash

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.

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