We recently published a list of the Jim Cramer Just Discussed These 13 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discussed recently.
As the Federal Reserve exits the year by having continued its interest rate cuts, Wall Street is wondering what 2025 will hold for markets. Inflation is a key concern among investors, and many believe that the Fed might have to update its models that determine the rate cuts. This update will account for any potential uptick in inflation and one which might be spurred by tariffs imposed by the incoming Trump Administration.
In a fresh episode of Squawk on the Street, Cramer commented on what might happen once the interest rate cuts intensify and how these effects might tie in with Trump’s strategies. Cramer doesn’t “understand that people want to be very concerned about the future after the cut, I really am not buying any of this.” According to him if the tariffs go through then the CPI can rise which will lead the Fed to not cut interest rates. But, if the tariffs don’t materialize or if “they’re targetted tariffs, and we get break in housing, I mean we just saw Tol Brothers, I know it’s only one million dollar house and not a hundred and fifty, but it starts somewhere. And we get some more apartments come in and we have big inventories from more than Ford.”
In the event the CPI rises, Cramer believes that “A year we’ll be sitting here and saying well, okay we had this blip up inflation but that’s over.” As a result, he believes that it is important to focus on “what the President-elect is gonna do. Why do we have to focus so much on what’s going to happen next year for the Fed when they actually have to react to what the President does?”
Cramer also believes that the US needs more workers. Commenting on Japanese billionaire Masayoshi Son announcing $100 billion in investments at Trump’s Mar-e-Lago resort, Cramer stated “I think the most important thing is we don’t have the workers for this stuff.” He added “The idea that we get the workers, and we do not have a good birth rate, robust birth rate, we do not have enough workers, we’re gonna have immigration reform. You know you wanna create jobs, what you need are people to fill them and we don’t have it.”
Another matter that’s caught Cramer’s attention when it comes to the President-elect is Trump’s remarks about taking on healthcare benefit managers once he assumes power. During a press conference at Mar-e-Lago, the President-elect shared that Americans were “paying far too much,. . . .much more than other countries” for healthcare. He added “We have a thing called the middle man, you know, the middle man right? The horrible middleman that makes more money frankly than the drug companies. And they don’t do anything except they’re a middleman.”
Trump says that his team will “knock out the middle man [AND HE’S] going to be very unpopular after that.” According to Cramer, “I think that what, if President-elect Trump follows up about knocking out the middleman, he will. He will because these companies will eventually lose their support in Congress,” as “when you have that kind of come together over them, you don’t wanna be in that business.”
Cramer commented on the impact the President-elect’s comments had and can have on the pharma benefits management industry. According to him “these companies are not, uh, without their friends. And by the way, they all resent the middlemen. Cardinal’s had a lot to be able to be a little bit more forward about what can be done. McKesson is considered to be a company that has done a lot to be able to make it so smaller drug stores get product.” Craner added that “the drug will all give you some great data which shows you that they are not the cause of the inflation. But they always are willing to finger, uh, United Health,” and as for the environment surrounding healthcare benefit managers, “right now, I’ve never seen it this bad for them.”
Our Methodology
To make our list of stocks that Jim Cramer is talking about, we listed down stocks he commented on during a fresh episode of CNBC’s Squawk on the Street.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 In Q3 2024: 193
NVIDIA Corporation (NASDAQ:NVDA) has catapulted itself to becoming one of the most valuable chip companies in 2024. All of its gains are driven by GPUs catered specifically to compute artificial intelligence workloads. However, the high demand for these products has led to supply constraints. These constraints have created murmurs that perhaps NVIDIA Corporation (NASDAQ:NVDA) is vulnerable to alternate AI processors designed by Marvell and Broadcom or even by big technology players such as Amazon. Cramer covered these worries in detail, and he only partially subscribes to them. According to him:
“However, I think there are people who say you know what, I gotta get off this horse, it’s going down. There is not much more to it, David.
“I think you wait until, okay no, no one’s gonna want to hear this and I, you know I love the stock, but the next big data point is gonna be in the third week of March, when Jen-hsun Huang the CEO has a GTC conference. He talks about new reasons, new things that are going on in NVIDIA, what it means to have video going on, because I think video is big. Now do I think it’s going to go through to one hundred, I don’t think so but look, this is one of the great wins of all time. And I think the people just say you know what, I’m on the wrong horse Carl, I gotta be in Broadcom. And they don’t think that maybe it’s field bet, that Broadcom, Marvel Tech, and NVIDIA are all good because of the demand. We’re forgetting the demand.
“Now he [Marvel CEO] made this announcement about Amazon, I don’t think people realize what the Amazon announcement was basically saying was we’re going to use our own chips, we’re going to have custom silicon designed by Marvell, and we’re going to use NVIDIA too. And there is no, there is still no distance between NVIDIA from both sides. When I speak to Amazon, I speak to NVIDIA, no one is saying that NVIDIA is being displaced. Everyone is saying we can’t get enough of NVIDIA so we have to take action.
“NVIDIA is a stock that, as we used to say in the hedge fund world, a down stock. And we said why. Well, you know why, there are more sellers than buyers. But the fact is that the people who are selling NVIDIA right now David they don’t know the difference between Nivea cream and NVIDIA chips.
“Look, I’m comfortable with NVIDIA. This is what it does. This is what it does. And people don’t know that. They don’t understand NVIDIA.”
Overall, NVDA ranks 2nd on our list of stocks that Jim Cramer just 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 time frame. 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.