We recently published a list of “Jim Cramer talks about these 10 stocks heading into December.” In this article, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands compared to other stocks Jim Cramer is talking about heading into December.
Jim Cramer spoke about President-elect Donald Trump’s Treasury nominations on a recent show and emphasized his enthusiasm for the stock market.
“Meanwhile, President Trump was all about Nielsen ratings when he was on ‘The Apprentice,’ and as president he has repeatedly said that the Dow Jones Industrial Average and S&P 500 are his new Nielsen ratings. He likes to be recognized, he likes to win, and he wants the stock market to go up because of his accomplishments. That’s a big reason why it’s skyrocketed.”
Cramer also touched on a possible 3-3-3 plan put forward by Scott Bessent, President Trump’s nominee for the Treasury Department, which would reduce the budget deficit to 3% of GDP and growth rate to 3%, and increase Japan’s It seeks to produce 3 million barrels of oil.
Jim Cramer said he is skeptical of Elon Musk’s efficiency plans in the incoming Trump administration.
“Can there be legitimate top-to-bottom changes in the efficiency of our government and its associated costs? I want you to consider me a skeptic about all endeavors. , because every penny of budget spending has a constituency. All these proposed cuts will face enormous opposition. But that’s not the point. It shows that the person nominated as chief is a serious person.”
Also Read Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and More
In this article, we watched some of Jim Cramer’s latest shows and picked out 10 stocks that he talked about. For each stock, we mentioned hedge fund sentiment. Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Jim Cramer says Nvidia (NVDA) stock doesn’t capture the “seismic shifts” taking place in the market
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Number of hedge fund investors: 193
Jim Cramer had this to say about one of his favorite stocks, NVIDIA Corporation (NASDAQ:NVDA), on his latest show:
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“Frankly, I have never seen anything like what is happening with Nvidia. Never, never. And yet, I said, this stock simply doesn’t capture the seismic shift that’s happening here. You know, Nvidia is disrupting everything we know.”
For NVIDIA Corporation (NASDAQ:NVDA), simply beating earnings estimates is no longer enough. The stock fell despite reporting better-than-expected numbers for the latest quarter. However, analysts feel that growth is slowing. Nvidia’s fourth-quarter revenue outlook is below buy-side whispers of $39 billion, and the company expects gross margins to continue contracting next quarter. Non-GAAP gross margin for the fourth quarter is expected to be 73.5%, down from 75% in the third quarter. The cloud hyperscaler, which is NVIDIA Corporation’s (NASDAQ:NVDA) largest customer (accounting for 50% of its revenue), is increasing its in-house AI chip development and collaboration with competitors such as AMD. This raises concerns about Nvidia’s medium- to long-term demand and profit growth.
Polen Focus Growth Strategy says this about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“In a reversal from the past two quarters, NVIDIA Corporation (NASDAQ:NVDA) was the largest relative contributor for the quarter, despite a slight underperformance of -1.7%. In many ways. , NVIDIA was the epitome of increased volatility across the market. Beneath its calm surface, the company experienced a 27% drawdown and subsequent +31% rally. The company ended the quarter with a cycle of drawdowns and subsequent gains of 20%.In our view, the stock price volatility goes beyond fundamental business factors, but the company is driven by cloud service providers and large enterprises. Generative AI (“GenAI”) has benefited from increased capital spending budgets for infrastructure spending. At the same time, the company endured weak stock prices related to delays in its next-generation Blackwell chips and earnings expectations that were better than expected, although not as much as some investors had hoped. We continue to believe that NVIDIA is a very well-positioned company, with significant demand for its chips and servers ahead of hardware demand from real-world enterprises, and a lack of recurring revenue. , is cautious about the sustainability of its growth. ”
Overall, NVDA ranks #1 on Jim Cramer’s list of stocks to talk about heading into December. 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 Widemot Stocks to Buy Now and 30 Most Important AI Stocks, According to BlackRock
Disclosure: None. This article was originally published on Insider Monkey.
