We recently compiled a list of Jim Cramer’s bold predictions for these 15 tech stocks. In this article, we’ll take a look at how NVIDIA Corporation (NASDAQ:NVDA) stands compared to other technology stocks that Jim Cramer has talked about recently.
Like all of us, Jim Cramer is always thinking about what’s next for the stock market. So far this year, AI continues to dominate the market due to the Federal Reserve and the 2024 US presidential election. Now that the election is over and investors are pondering the incoming administration’s tariff policy, Cramer, like the rest of us, is keeping an eye on the Federal Reserve.
The Fed and tariffs are connected because the latter can cause inflation and the former can force interest rates to remain high for long periods of time. While Wall Street is trying to decipher what lies beyond AI, it is also wondering about the pace, scale, and frequency of the Federal Reserve’s 2025 rate cut cycle. The nervousness is reflected in bond yields hitting 4.38% on Friday and asset manager Apollo Global warning that four major inflation indicators appear to be accelerating again. Core CPI, Core PCE, Supercore CPI, and Supercore CPE are all starting to rise again, according to Apollo.
Cramer also had the Fed in mind on Mad Money, which aired last week. Kramer commented on the market tensions during the show. The TV show host wondered why the stock market wasn’t reacting to the strong performance in semiconductor stocks. He began by sharing, “I hate the endless focus on the Fed. Everyone. It detracts from the long-term performance benefits of a stock portfolio.” That’s because Cramer believes that “every little signal from the Fed drives predictions, and when a lot of people get spooked, they sell blue-chip stocks.”
He added that economic data shows there will be opposition within the Fed regarding further rate cuts at its next meeting in December. “While I don’t think the data are cool enough at this point to be positive about the prospects for further rate cuts, I don’t want to make that decision purely based on the Fed’s actions,” Cramer said. “Contrary to popular belief, monetary policy Investing is more important than that, and I wish everyone knew that.”
On the topic of tariffs, Kramer had a lot to share in November. Kramer began by analyzing the performance of the benchmark S&P index from mid-2017 to early 2020. “This is where the real tariff measures from the first Trump administration begin,” he said. “President Trump has imposed tariffs on steel, aluminum, solar panels, washing machines, etc.,” he said. “All of this helped the industry in question, but…the broader market didn’t like that we were causing a global trade war.”
the story continues
Cramer pointed to the index’s performance from January 22, 2018 to December 24, 2018 to support his view that tariffs are bad for the stock market. However, consider what he says before you ignore them. According to Cramer, during this period, “the S&P 500 lost 18% of its value. Part of that, of course, was because the Fed became very aggressive in raising interest rates throughout this period. Basis Points” But the Fed was definitely not alone that year. Effectively every time additional tariffs are imposed, the S&P rolls over and we find ourselves sold every time China retaliates. ”
But, according to Cramer, “Once the Fed decided to end tightening at the end of 2018, S&P was finally able to find a floor.” In response, the market “recovered like crazy as part of a bullish trading cycle” that lasted until the coronavirus outbreak in 2020. Simply put, markets couldn’t handle the trade war when the Fed was tightening monetary policy. But soon the Fed started easing, and all those losses evaporated. ”
Using a chart from Jessica Inskip, Kramer compared the last intersection of the Fed and President Trump’s tariffs to today’s environment. “The Fed is now our friend,” he outlined. Why is this so? As soon as the Fed stopped tightening, markets “reacted less aggressively to the trade war,” Cramer said. “When the market is already in a bearish trend, something like a trade war can certainly hit hard,” he said. “But if we have a bullish trading cycle like we’re currently seeing, “As long as we can maintain that, I have nothing to worry about,” he said. This cycle. ”
So as Kramer remains cautiously optimistic about the future of the stock market, we decided to see how his views on stocks have stood the test of time.
our methodology
To create a list of 15 stocks where Jim Cramer made bold predictions, we compiled his statements about the top tech stocks and ranked them by date they were made.
We also mentioned the number of hedge fund investors in these stocks. 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 points. (Click here for details).
A close-up view of a colorful high-end graphics card connected to a gaming computer.
Number of hedge fund holders in Q3 2024: 193
Kramer’s comment date: October 14, 2024
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading AI GPU designer. It is also a major beneficiary of the current AI wave due to the strength of its products. Cramer gave up easily when discussing buying NVIDIA Corporation (NASDAQ:NVDA) stock at the right time. He said:
“Initially, NVIDIA was blamed along with the rest of the market when the yen carry trade collapsed. It was a temporary issue and quickly recovered. NVIDIA has since escaped the blow of the previous sell-off. The company’s next-generation superchip, Blackwell, declined significantly after the fourth quarter. The demand for was found to be “insane,” a technical term coined by Jensen. The next thing you know, the stock price has come back a lot, but very few people are selling their stock. And before this, yes, they disappeared a long time ago, and because they traded and sold, they disappeared at a much lower level. Again, when trading NVIDIA, remember that it’s probably not possible to sell high and come back low. Without you, the ship would have departed. Guys, that’s too difficult.
NVIDIA Corporation (NASDAQ:NVDA) stock is down 2.8% since Cramer’s comments, so selling at that time was probably the right decision. Not only did Blackwell GPU supply issues worry investors, but the stock fell 7.50% in December following Broadcom’s surprising announcement that it would collaborate with three hyperscalers to develop AI GPUs. For more information, check out our coverage of Broadcom on this list. But it appears Wall Street may be open to the idea of an alternative to NVIDIA Corporation’s (NASDAQ:NVDA) offering.
NVDA ranks No. 4 overall on Jim Cramer’s list of recently talked about tech stocks. While we see NVDA’s potential as an investment, we believe AI stocks are more likely 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: BlackRock’s 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.
Disclosure: None. This article was originally published on Insider Monkey.
