We recently published a list of the Jim Cramer Stock Portfolio’s “Top 11 Stocks to Buy and Sell” for the fourth quarter. NVIDIA Corporation (NASDAQ:NVDA) ranks #1 on our list, so it’s worth taking a closer look.
Jim Cramer spoke on CNBC’s latest show about the importance of using short-term pullbacks to your advantage. He said investors need to know when to take their chips off the table.
“The idea that you should buy and hold through the best of times and the worst of times, with very few exceptions, is probably incredibly stupid,” Kramer said.
Kramer explains that if a stock you buy keeps going up and up and you keep resisting the urge to make a profit, but later the stock goes down and you subtract all your profits, you won’t actually make any money from those profits. He said he couldn’t. While this sounds simple, Kramer says the idea of buying low and selling high is easier said than done.
“Don’t get fooled by optimism. Instead, keep your head straight, check your emotions, focus on the long term, and call the cashier, especially on stocks that may be getting too expensive. “Think about it,” Kramer added.
In this article, we watched some of Jim Cramer’s latest shows on CNBC and selected the 10 stocks he talked about. We also covered an interesting prediction Mr. Kramer made for stocks in 2021 to see how it turned out. For each company, 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 ).
Is NVIDIA Corporation (NASDAQ:NVDA) the top stock to buy and sell in Q4, according to Jim Cramer?
NVIDIA Corp (NASDAQ:NVDA)
Number of hedge fund investors: 179
In December 2021, long before ChatGPT was launched or trending words like “hyperscaler” and “LLM” became popular, Jim Cramer made some prescient comments about the chipmaker on CNBC’s show. I did.
“I just went out there and looked at things and time-traveled with Jensen Huang. This could be a $10 trillion stock, so I bought NVIDIA Corp (NASDAQ: NVDA) has become a pig.”
At the time, NVDA was trading at around $29 and is currently at $123.
Nvidia’s decline after its latest quarterly results was more or less expected following reports of Blackwell’s delays 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. Although Blackwell’s plans have been delayed by several months, Nvidia’s core growth theme remains the same.
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Nvidia will see significant growth on the back of the data center boom amidst the AI wave.
At Nvidia’s GPU Technology Conference in March 2024, CEO Jensen Huang estimated annual spending on data center infrastructure at about $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 that 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 doesn’t monopolize the entire $2 trillion opportunity, as it faces competition from companies like AMD, Google, Amazon, and even Apple’s homegrown AI accelerator. Some analysts believe that NVIDIA’s data center market share from 2025 to 2029 will exceed $950 billion, less than half of the total market, but still enough to make it a leader in the field. .
Ithaka US Growth Strategy says this about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a market leader in visual computing through the production of high-performance graphics processing units (GPUs).The company serves four major growth markets: gaming, professional visualization, data center, and automotive. NVIDIA’s products have the potential to lead and disrupt the most exciting areas of computing, including data center acceleration, artificial intelligence (AI), machine learning, and autonomous driving. There are two reasons for the stock’s rise in the quarter: One, the stock benefits from a lot of excitement surrounding further developments in generative AI and the possibility that this will require the purchase of large amounts of Nvidia products in the distant future. Second, NVIDIA also posted strong results in the quarter and exceeded market expectations for Q2 2025 to support today’s accelerated computing infrastructure. demonstrated an advantageous position in the construction of
Overall, NVIDIA Corporation (NASDAQ:NVDA) ranks #1 on Insider Monkey’s list titled Q4 Jim Cramer Stock Portfolio: Top 11 Stocks to Buy and Sell. While we see the potential in NVIDIA Corporation (NASDAQ:NVDA), we believe AI stocks have a better chance of delivering higher returns in a shorter period of time. 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: Analyst sees new $25 billion ‘opportunity’ in NVIDIA and Jim Cramer recommends these stocks.
Disclosure: None. This article was originally published on Insider Monkey.
