Opinions
Jim Cramer - Mad Money
NVIDIA Corporation
NVDA-Q
PARTIAL SELL
Jun 14, 2024
Stock price when the opinion was issued
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Clear winner, because its chips make AI possible. There is some competition out there, but AVGO isn't one of them. Look for a good buying opportunity.
He sees a parallel with INTC, which was a darling for many years. Not now. NVDA still has the market share; there are companies trying to catch up, but NVDA is still further ahead.
Premium contentThey report Aug. 27. AI will remain a tailwind for productivity and economic growth. However, he liked NVDA when it was below $90 last April, but not at twice the price. It costs too much now, though he likes the company. Technically, it needs to fall to at least $150, in the range of $125-150.
Premium contentNVIDIA Corporation is a leader in the semiconductor industry, renowned for its advances in graphics processing units (GPUs) and artificial intelligence (AI) infrastructure. Founded in 1993 and headquartered in Santa Clara, California, the company has consistently pushed the boundaries of technology, particularly in gaming graphics, AI, and data center markets. NVIDIA's technology is broadly adopted across multiple industries, including automotive, healthcare, and financial services, making it a key player in the technology sector. Social media mentions are up 11.1% in the past 24h.
Marries hardware and software and applying massive improvements to push product cycle forward. AI wouldn't exist if not for NVDA. Capex cycles do end, so it won't be the honeymoon period forever. But we're only in 4th-5th inning, much more growth to go on the capex front. Still underbuilt, undersupplied, AI still taking off.
Earnings are coming up, and he thinks they'll beat and raise again. Yield is 0.02%.
He'd still buy here. Always fireworks around quarterly earnings. It's run up, but fundamentals are outstanding. Clear technical superiority in AI chips. AI infrastructure buildout will keep order books full for a long time. Major beneficiary of AI capex.
No contest. This is the one to own.
NVDA's cycle forecast stretching back to Nov. 2023 is negative. NVDA will top out on June 17, then decline for as long as July 30 before rising again in August. He himself (Cramer) recently took profits, because NVDA has had such a monster run. That said, he himself remains a true believer in NVDA and still holds some shares. (He feels the same with Apple, which has had ups and downs this year.)