We recently published a list of Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other NASDAQ 100 stocks that Jim Cramer discussed recently.
Jim Cramer, the host of Mad Money, recently shared his perspective on the stock market, especially reflecting on the events of 2024. He emphasized that years like 2024 don’t come around often, where everything feels so clear and the winners are so apparent. According to Cramer, if investors tried to get too creative or overcomplicate their strategies, they likely missed out on the obvious winners.
“If you tried to get creative, you tried to get clever, you missed out on some truly idiot-proof winners. The losers on the other hand, well, they were not as easy to spot because in many cases they were the market’s former winners, even if they long ago lost their way.”
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As part of his annual analysis on Mad Money, Cramer examined the top and bottom performers of the Nasdaq 100 in 2024, offering insights into what worked and what didn’t. He reviewed how, in many instances, investors tend to become frustrated with stocks that are overhyped, knowing deep down that eventually, something better will come along. He likened these overly loved stocks to a “mouse trap,” where the price could only go down from such lofty heights, warning that many investors would regret not jumping off the metaphorical spaceship before the crash.
Cramer shared his thoughts on the five best performers in the NASDAQ 100 for 2024, calling it a “real good collection of winners” and expressing a genuine fondness for these stocks. He also noted that, while the Nasdaq 100 losers may have appeared to have suffered dramatic declines, the reality was more nuanced.
“The Nasdaq 100 losers, though they aren’t so horrible as the declines would make you think, but they got clobbered because they were emblematic of golden calves, worshipped for a long time before being revealed as not so special after all.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Talking about NVIDIA Corporation (NASDAQ:NVDA), Cramer said:
“The stock was up 171% last year and also by the way, had a very strong close today of 4.3%. Of course, for a decent chunk of the year, there was a lot of worry about a late product and a fractured client base that wants to design its own chip because NVIDIA’s cost too much even if the return on investment’s really large here.
Believe me, if I thought anyone could touch NVIDIA’s products and platforms, I’d be happy to say, sell it and book the gain but I can’t justify that because this company’s peerless. Frankly, the biggest thing working against the stock is, well, the terrible way it trades, giving up huge clumps after making soft climbs. For any other company, I’d say abandon the stock, but NVIDIA’s products are too good, too indispensable and its CEO runs harder than anyone else I’ve ever met. I expect a great speech from Jensen Huang at CES next Monday.”
NVIDIA (NASDAQ:NVDA), a leader in graphics, computing, and networking solutions, is driving significant growth through its GPUs and the CUDA software platform, which are essential for AI infrastructure. CEO Jensen Huang’s recent keynote at CES unveiled several products, including Project DIGITS, a personal AI supercomputer, next-gen GeForce RTX 50 gaming GPUs, and the Cosmos platform for robotics and autonomous vehicles. The company also highlighted its focus on AI Blueprints for Agentic AI to automate business functions.
It is noteworthy that Analyst Dan Ives sees a $1 trillion market opportunity in robotics, potentially boosting NVIDIA’s valuation to over $4 trillion. Furthermore, the company’s Chief Financial Officer, Colette Kress, highlighted the company’s growth prospects, noting that Blackwell chip shipments are on track and the upcoming fiscal year is expected to see growth in the data center business.
Kress pointed to two key transformations driving long-term revenue growth. First, there is a $1 trillion installed base of general-purpose computing solutions that have been in use for decades, presenting significant opportunities as data and accelerated computing become more critical in data centers. Second, Kress emphasized the shift to AI solutions, where the growing use of data with AI in daily life offers substantial expansion potential. These changes, she noted, will unfold over the next decade and beyond.
Overall, NVDA ranks 1st on our list of NASDAQ 100 stocks that Jim Cramer discussed recently. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.