2. NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Cramer noted that he remains a “believer” in the company, as he stated:
This company just had a very successful COMPUTEX festival in Taiwan with CEO Jensen Huang at the top of his game, talking about how his Vera Rubin chips are so fantastic, and they have brought acceptance already. It was a very compelling story, and you know, I remain a believer in NVIDIA, but when I look at the stock, the big six need to sell, I’m betting most of the buyers will also own the stock of NVIDIA. If you love the data center story, right, you love NVIDIA. It’s at the heart of it. Jensen’s sticking by his mantra: companies that buy his wares will make money with them. Of course, his wares have to be put in these gigantic warehouses full of servers, and they need a lot of power and a lot of money. But the whole thing could take years. It’s a huge build-out.
So the most natural source of funds for these deals isn’t a Chevron or a JPMorgan or a Walmart or a Lilly or maybe even an Apple. Sellers will most likely hit Microsoft and Amazon, anticipating deals where they might be able to buy the stock back. And once again, I hope they don’t try to raise that money. I really wish they could just come out and say they won’t, but that’s a tough thing to do. Really, though, the buyers will raise money by selling NVIDIA. I am deeply concerned that it’ll become known as a market donor, a source of funds for those who want to buy these new companies and don’t have the capital to do so. I hope NVIDIA gets a chance to buy back so much stock that it’ll be great.
But you know what? It’s going to be a little difficult right now. That’s why I believe NVIDIA stock was down so hideously today, down eight bucks, 3.62%. It’s just too easy to sell… Right now, NVIDIA’s looking like the biggest piggy bank in the world. While it’s not going to be empty, and of course, it does have $5.2 trillion of other people’s money as its market cap, you gotta expect some withdrawals, even as I think the story is excellent. We own NVIDIA for the Charitable Trust. I have total faith in AI as the fourth industrial revolution. I have total faith in Jensen Huang. I’ll try to own it through… deals, but I have no illusions; it’s going to be a tough time for shareholders.
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.
