We recently published Jim Cramer’s Latest Calls: Top 10 Stocks list. In this article, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands relative to the other stocks featured in Jim Cramer’s latest call.
Jim Cramer talked about Bitcoin on a recent show and reminded investors that he has always believed in cryptocurrencies.
“I really want to talk about Bitcoin. I do it, not to the detriment of stocks, but in addition to stocks. I’m not here to buy Bitcoin, I’m here to praise Bitcoin. First, let’s dispel the idea that I never believed in Bitcoin. If you search YouTube, you’ll see that the first time I bought Bitcoin was on September 15, 2020. Price is 10,000 You can see that it was strong against the dollar.”
Cramer said he likes the idea of Bitcoin as a store of value and always recommends investors allocate 10% of their portfolio to Bitcoin. But he once again urged investors to focus on stocks for the rest of their portfolios.
“I heard Fed Secretary Powell say that he believes people are buying Bitcoin as a store of value, like gold, because there isn’t a lot of trading going on in Bitcoin. I’ve always been a proponent of keeping up to 10% of your portfolio in gold as a kind of insurance against the craziness of the world, but I’ve had Bitcoin occupy that 10% spot for years. It has also been said that it is a good substitute for gold. Why not?
Kramer then pointed to several stocks that have made dramatic gains since their IPOs to show investors the power of investing in stocks.
Also Read Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and More
In this article, we watched Jim Cramer’s latest show and picked out the 10 stocks he talked about recently. For each stock, we mentioned the number of hedge fund investors. 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 ).
Number of hedge fund investors: 193
Last month, Jim Cramer spoke out about NVIDIA Corp’s (NASDAQ:NVDA) poor performance after its quarterly results and refuted the bearish narrative impacting the stock. Cramer said other companies are making their own chips because NVIDIA Corp (NASDAQ:NVDA) still has no competition and NVIDIA is struggling to keep up with so much demand. .
the story continues
“NVIDIA Corp (NASDAQ:NVDA) stock is struggling in a typical post-earnings miasma. We know nothing is wrong. We just looked at the numbers. They were great. But things have peaked, growth rates are slowing, profits are falling, and there is widespread skepticism that competition is heating up, especially from Amazon. Yes, of course I hear this every time.
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 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.
Columbia Seligman Global Technology Fund says this about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 Investor Letter:
“The fund maintained an underweight position in NVIDIA Corporation (NASDAQ:NVDA) relative to the S&P North America Technology sector, following the company’s impressive gains in 2023 and the first two quarters of 2024. , NVIDIA’s stock price fell during the quarter after the company announced its second-quarter earnings. Although profits were better than expected, investors were concerned that the company was not driving earnings high enough, suggesting a possible slowdown in AI development. Demand for NVIDIA remains strong, and the company is forecasting orders for the coming quarters. The question that remains is whether the company can meet demand for AI processors and connectivity chips. Our team remains vigilant about NVIDIA’s high customer concentration. Microsoft and Meta drive a significant portion of the company’s revenue, which poses additional risks. ”
Overall, NVDA ranks #1 on the list of stocks featured on Jim Cramer’s latest conference call. We see the potential in NVDA, but behind the scenes we believe that 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.
