We just published a list of Jim Cramer Talks About These 10 Stocks Headed Into December. In this episode, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks Jim Cramer is talking about heading into December.
Jim Cramer in a recent program talked about President-elect Donald Trump’s Treasury pick and emphasized his interest in the stock market.
“On the one hand, President Trump was all about the Nielsen ratings when he was Teacher, and as president, he repeatedly said, The Dow Jones Industrial Average is at an all-time high, and the S&P 500 were his new Nielsen ratings. He likes to be counted, he likes to win, and he wants the stock market to go up to boost his performance. That is the main reason why the market exploded when he won. “
Cramer also discussed Trump’s Treasury pick Scott Bessent’s 3-3-3 plan that aims to bring the budget deficit to 3% of GDP, 3% growth and produce 3 million barrels of oil per day.
Jim Cramer said he is unsure about Elon Musk’s plans for the upcoming Trump administration.
“Would there be a top-down legal change in the operation of our government and the costs associated with it? Count me as a skeptic of any government change effort, including Elon Musk and Vivek Ramaswamy’s Doge thing, because every penny of spending in the budget has a constituency. When you put all those cuts together, you face opposition But that’s not the point. The important thing is that this Treasury Secretary is a simple person.
READ ALSOJim Cramer’s Last Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stores
For this article we looked at several of Jim Cramer’s latest plans and picked 10 stocks he is talking about. With each stock we have discussed hedge fund sentiment. Why do we like the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by following the best pictures of the best quality hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points. (see more here)
Jim Cramer Says Nvidia (NVDA) Stock Price Not Capturing the ‘Seismic Shift’ Happening in the Market
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Commenting on one of his favorite stocks, NVIDIA Corporation (NASDAQ: NVDA ), in a recent announcement, Jim Cramer said:
“To be honest, I have never seen anything like what is happening at Nvidia. Never, never. And even though the stock was down even though 19 firms raised their target prices this morning, I said this stock is not taking the seismic shift that is happening here. You see, Nvidia is messing up everything we know. “
Just beating earnings estimates isn’t enough for NVIDIA Corporation (NASDAQ:NVDA) anymore. The stock fell despite reporting better-than-expected numbers for the last quarter. However, analysts are seeing a slowdown in growth. Nvidia’s Q4 revenue guidance missed the purchase-whisper number of $399 million, and the company expects margins to continue to decline next quarter. For Q4, non-GAAP gross margin is estimated at 73.5%, down from 75% in Q3. NVIDIA Corporation’s (NASDAQ: NVDA ) biggest customers, cloud hyperscalers — which account for 50 percent of its revenue — are increasingly developing in-house AI chips and partnering with competitors like AMD. This raises concerns about Nvidia’s medium-to-long-term growth in demand and margins.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“In retrospect from the previous two quarters, The company NVIDIA (NASDAQ: NVDA) represented our top contributor for this quarter, despite not performing well, down -1.7%. In many ways, NVIDIA was a microcosm of a larger market that has become increasingly volatile. Under the calm environment, the company experienced a 27% drop followed by a +31% rally, only to repeat the cycle with a -21% draw followed by a subsequent 20% rally to end the quarter. In our view, the stock’s volatility outweighs key business drivers, but the company has benefited from increased operating budgets from cloud service providers and large enterprise AI (“GenAI”) infrastructure applications. At the same time, the stock endured weakness associated with the delay of the next-generation Blackwell chip, and earnings estimates beat expectations, although not necessarily as expected by some investors. While we continue to believe that NVIDIA is a business with great potential, with significant demand for chips and servers ahead of the demand for hardware from global enterprises, we are cautious about its growth as it lacks recurring revenue.
Overall, NVDA rank 1st on our list of stocks Jim Cramer is talking about as entering December. While we acknowledge NVDA’s potential, our confidence lies in the belief that this under-the-radar AI stock has the greatest promise to deliver high returns, and to do so within a short period of time. If you are looking for an AI stock that is more promising than NVDA but that trades less than 5 times its earnings, check out our report about cheap AI stock.
READ THE FOLLOWING:8 Best Wide Moat Stocks to Buy Now and 30 Most Valuable AI Stocks According to BlackRock
Disclosure: None. This article was published on Insider Monkey.
