Opinions
Jim Cramer - Mad Money
NVIDIA Corporation
NVDA-Q
PARTIAL SELL
Apr 21, 2025
Stock price when the opinion was issued
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Used to make 75% gross margins, but those have jumped to 90%. If it goes back to historic gross margins, even if sales continue, you'll see a huge degradation in profit. Sweet spot in terms of demand. Market thinks it can do no wrong. Worries that demand will abate or just normalize. Good news is baked in. Watch your position size.
Premium contentPremium contentProbably a good place to write some calls against it, especially as average analyst price target is ~$175. Over next few days, analysts will probably up price targets due to H20 chips being allowed to China. It'll be king of the hill for at least 18 more months. Should definitely be in your top 5.
(Analysts’ price target is $175.00)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.
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Markets are down today from Trump hectoring Jay Powell badly. If this leads to a constitutional crisis, you will need some cash. He always believed that the President can't fire the Fed Chair. This talk and tariffs have done enormous damage to stocks. Losses could worsen if Trump keeps trashing Powell without achieving a good tariff deal. Washington is incredibly biased against Nvidia and Apple, two excellent companies. Trump is more interested in cutting off China than advancing America's interests. This makes NVDA a hard stock to own, though not as bad as Apple. Apple makes the best consumer products on Earth, and they will eventually get AI right. But Apple makes a lot of products in China. The market could get worse, but at some point the pain will get so bad that Trump will back its most punitive measures. There has to be some sanity here. A strong Apple with business in China is in America's interest, while Nvidia is worth supporting. It doesn't have to be this way.