We recently published 11 Latest Stocks That Jim Cramer Just Talked About. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.
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The end of August is seeing some investor jitteriness when it comes to NVIDIA Corporation (NASDAQ:NVDA)’s shares. After the stock failed to close higher following its fiscal Q2 earnings report, the shares lost more than 2% on Friday after Chinese technology giant Alibaba unveiled its AI chips. Cramer commented on NVIDIA Corporation (NASDAQ:NVDA) after its earnings report and discussed it in quite a bit of detail:
“[On H20 comments in the call] Look I think that was the most opaque moment on an otherwise terrific conference call because it’s up to two different governments. A lot, for some of the numbers that you saw that they allegedly disappointed, is because they did have something in for China and there was nothing in for China. Look I’m not, China’s not a side show, it’s very, very important. Because you’ll buy the stock at 190 if it comes out today what they’re gonna do. But David, I think the, I wanna posit something that kind of, I think will help viewers at home. When we saw Microsoft, go to four trillion, we said, fine, it’s software, that happens. In the old days when we saw Exxon become the number one company, well that’s oil, that’s what happens. At one point we had Merck, okay that’s pharma. Right now we have to accept the fact that this is hardware, with a software component, and it’s changing the world, and the most important number is that they’re talking about a total addressable market that’s going to triple in the next four years. If that’s the case, then revenues could triple. And then you’d say, well, even though it’s hardware, this is the greatest growth story ever told.
“Blackwell was 17% sequential, that’s 4.9 billion dollars added off of 28 basis, okay, that’s bad [sarcasm]. That’s one.
“These are not pieces that they’re making. You can’t make them and say, you know what, let’s make another billion pieces. You can’t just, that stuff is hard to make. Everything was sold out, everything.
“[On finished goods inventory being up] All sold. All sold. Well because you can’t, these are things you can’t just ship like this. Now you know that when you hear that they talk about CoreWeave, which is by the way up six because CoreWeave is going to be the one that has the ability to put them in. If you listen to Sridhar Ramaswamy, we’ll get to that with Snowflake, he would tell you, look, you can’t just say, you know what, send me a couple of Blackwells, you have to send the Blackwells first to, uh, in this case Azure, and then, you can worth with Azure on behalf of the customer, and it’s very hard for people to figure out, actual demand, other then the fact that Azure will take everything they can get. And that matters to me. Now Wolfe asked a very important question, which is that, listen if there are only two companies that are buying everything they can, well, when one wins then isn’t that the end? And of course in this conference call they talked about the vast multitude of companies that want these. But CoreWeave is just the quickest to [inaudible] because they’re very close to Michael Intrator, and he knows how to assemble, he’s the CEO of CoreWeave.
“[On three customers accounting for 29%, 19%, and 14% of accounts receivable] Well, there are probably seven or eight customers that would like to be, but you can’t, you don’t give the smaller guys, you don’t give, sovereign AI could be really big, but you don’t just say, you know what, I’m going to go shaft Azure and I’m going to give it to, uh, Iceland. I like Iceland.
“[On whether Blackwells could go to China with the White House getting a cut of the sales] No, they’re not going to do Blackwell, there’ll be something that’s less than a Blackwell. I think that, again this comes back to who do we want to have, determines right, and it’s really confusing. Who do we want the developers to write on to take advantage of it? Jensen did say, look, the Chinese have more writers than we have, we really want to try to control this. It would be great if we controlled this.
“[On no China sales or guidance] No, and that was part of the so-called disappointment. But, David, I would tell you that if you are trying to game your model, like these guys do, and today you see Jensen at the White House, he’s not there but I’m just saying let’s say I’m positing that, well then you think that it’s going to happen, then you’ll say, wow I sold it at 178 last night, I guess I got to get back in.
“You’re creating a factory, these AI factories, okay, that’s one thing, it was a theme throughout, which is that that’s like an Eli Lilly needs a factory to be able to put together all the different studies of GLP-1 and come up with a right molecule. That’s number one. Two, you want to build a ship, well you need to have an AI factory to get the ship right. I thought the most important thing, that Jensen was talking about, was that the next generation, the GB300 which CoreWeave’s putting together, and Vera, Vera Rubin, is, that we’re now in the age with long thinking. And long thinking means, you’re not, like right now you put something into a prompt, right, tell me everything you know about the Mets beating the Phillies, you know and it comes back with like, well this guy won three in a row, he’s never done. . . now what it’s saying is I wanna figure out, we’re taking a case. . .give me all of the things I can say in defense of Lisa Cook, and it’s going to be better than most lawyers. And it’s going to be better, than most. lawyers. And then you can have a long thinking discussion with Vera Rubin that will be better than talking to any associate that you pay a huge amount of money for. And that is what’s happening. That long thinking was the most important term that Jensen used.
“But I think the long thinking was really important, and then, a discussion that Collette Kress, whose just this amazing CFO, talked about which is that a lot of the next generation is robotics, so it’s long thinking, robotics. We’re all going to have robots, now that’s something that Amazon has talked about, but it’s happening soon. If you get the total addressable market of the gigantic addressable market, that involves, remember we’re talking about the three, four trillion dollar opportunity, by 2030, that’s because you’ll have a robot.
“When I felt that there was no chance whatsoever about China, Jensen came on Mad Money and said, listen, we have it.
“I wish he hadn’t said Blackwell, I think that there are people within the White House, who are saying, listen, we really have to be careful with what we give them. I think the China hawks are relentless that Jensen’s a globalist. . . But Jensen has said, no, listen, not only am I not a globalist, but we are going to make the Chinese work on our platform. Almost jingoist, not globalist.
“[On inventory being higher 93% year-over-year] No it’s absolutely right David. It’s just that when I talk to the company about that . . .[they say] listen, what can we tell you Jim? We’re making everything we can and everything’s sold. And I don’t know what to say.
“And as I said on Twitter, go ahead, sell it and go buy some T-Bills. Please, please buy T-Bills. I want you out of this darn stock.
“But I’m just trying to say, you’re either skeptical, that Collette Kress, one of the great CFOs, is not necessarily being as, you know is painting a very rosy picture of sales. Or you can say, as I do, as someone who, needless to say, liked the stock early, maintaining my faith in the company and I’m saying, own it, don’t trade it.”
While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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