We recently published Jim Cramer’s November Portfolio: Top 10 Stocks List. In this article, we’ll take a look at how Nvidia Corp (NASDAQ:NVDA) stands compared to the other stocks in Jim Cramer’s November portfolio.
The stock market is in turmoil following Donald Trump’s victory. Jim Cramer, who has long believed that a Trump presidency bodes well for the stock market, spoke earlier this week about the market’s reaction when it became clear that Kamala Harris would win. Looking back at Kramer’s analysis now, it’s easy to see what group of stocks could rise in the coming weeks and months.
Jim Cramer analyzed the causes of the market’s decline at the close Monday night. Kramer believed the possibility of Iowa turning blue was scaring some market circles based on a variety of assumptions.
“Let’s start with the bond market, which has had the most surprising response. Interest rates have dropped significantly today. Now, I was used to interest rates going up with Democratic wins, so this surprised me. That’s completely out of character. But the bond market is soaring, and that decision is not made on a whim. If Harris wins the election, billions of dollars will be invested today to lower interest rates. I think that’s surprising.”
Mr. Cramer then talked about various stock groups that have moved on the idea that Ms. Harris has a chance of winning this election. Housing stocks rose as the market became bullish on the possibility of subsidies if Harris wins. But tech stocks fell, and Cramer explained why:
“Today’s trading (in hyperscalers and tech stocks) was terrible. What does that say? Traders say that Harris is a notoriously anti-hyperscale company, and that Biden’s FTC and antitrust appointments I’m betting that we will support it,” Kramer added.
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In this article, I watched some of Jim Cramer’s latest shows and selected 10 stocks that he talked about. For each company, we mentioned hedge fund sentiment.
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Jim Cramer on Nvidia (NVDA) exit: ‘The greatest stock of this generation’ is taking a break
Number of hedge fund investors: 179
Last month, Jim Cramer talked about the decline in Nvidia Inc. (NASDAQ: NVDA) stock, mocking the stock’s naysayers, saying that NVDA bears always seem to come up with an “obituary” when the stock price falls.
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“This generation’s greatest strength, as we’ve seen time and time again, is simply taking regular breaks.”
Investors will be watching closely when Nvidia, Inc. (NASDAQ:NVDA) releases its latest quarterly results next month.
NVIDIA’s decline after its second-quarter results was more or less expected following Blackwell’s delayed report confirmed by management. However, the main cause of the delay was due to changes in the Blackwell GPU mask. Analysts say this does not affect the chip’s core functional logic or design. Blackwell’s plans have been delayed by a few months, but the core growth themes for Nvidia (NASDAQ:NVDA) remain the same.
Nvidia Corp (NASDAQ:NVDA) is poised for strong growth on the back of a data center boom amid the AI wave.
At Nvidia Corp’s (NASDAQ:NVDA) GPU Technology Conference in March 2024, CEO Jensen Huang estimated annual spending on data center infrastructure at approximately $250 billion. Depending on how long this level of investment continues, the total could be between $1 trillion and $2 trillion over the next decade. In the same Q&A session, Bank of America’s Vivek Arya echoed this estimate, saying the total addressable market is in the range of $1 trillion to $2 trillion, especially if countries invest in their own AI infrastructure. suggested that it would fit within. By the end of the decade, spending is likely to reach the high end of that range.
Of course, NVIDIA Corp (NASDAQ:NVDA) faces competition from companies like AMD, Google, Amazon, and even Apple’s internally developed AI accelerators, so it’s unlikely it will monopolize the entire $2 trillion opportunity. you can’t. Some analysts believe that Nvidia’s (NASDAQ:NVDA) data center market share from 2025 to 2029 will exceed $950 billion, less than half of the total market, but it will still be a leader in its field. I think that’s enough.
Baron Opportunity Fund said the following about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“Given the impressive returns of NVIDIA Corporation stocks over the past few years and their growing weight in our portfolio, we have reduced our stakes in NVIDIA and Microsoft Corporation during this period. As mentioned above, , our view on AI and the leadership of these two companies remains unchanged. On an absolute basis, NVIDIA and Microsoft remain the top two positions in the portfolio, as of this writing. occupies our largest position, with Microsoft in second place, but both remain significantly overweight to the benchmark.”
Overall, NVDA ranks No. 6 on Jim Cramer’s list of stocks in his November portfolio. We see the potential in NVDA, but behind the scenes we believe AI stocks have great potential to deliver higher returns and do so in a shorter time frame. If you’re looking for AI stocks with more promise than NVDA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks, According to BlackRock
Disclosure: None. This article was originally published on Insider Monkey.
