NVIDIA Corporation (NVDA)'s Shares Gain 40% Since Jim Cramer Prediced "Pain" Last Year

We recently published Jim Cramer’s 20 Bold AI Predictions – See How They Played Out! NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.

Due to its central role in the AI industry, NVIDIA Corporation (NASDAQ:NVDA) has been a regular feature of Cramer’s morning shows. Since his comments in August, the stock has gained 40.4%. NVIDIA Corporation (NASDAQ:NVDA)’s shares would likely have been much higher had it not been for the massive DeepSeek selloff in January, which led to the firm bleeding nearly $600 billion in value. Between August and December, NVIDIA Corporation (NASDAQ:NVDA)’s shares were rather static as they gained less than 7%. The weak share price performance was due to investors waiting to see if the firm could sustain its sizable AI demand. Cramer was also cautious about NVIDIA Corporation (NASDAQ:NVDA) back then:

“I almost feel like you can guess it—it’s Nvidia. It’s the king, and the rest of the market is made up of its pawns, marching to Nvidia’s drum. Remember this morning when I was on the call and said, ‘Look, Nvidia is almost too important. There’s too much pressure on Nvidia—can it sustain it? I don’t want Nvidia to be Samson.’

“Take a look at this daily chart of Nvidia, going back to February. By the way, Larry, who advised selling Nvidia just before it peaked in the spring, predicted the stock would rise again in late May. Larry and his video calls have closely tracked the stock’s short-term cycle in red, which has followed the share price surprisingly well.

“Unfortunately, the short-term cycle now projects that Nvidia should peak sometime next week, leading to a sell-off that may extend through mid to late October. Nvidia reports next week, and the long-term cycle indicates a bottom around the same time. Given that Larry sees Nvidia as the lynchpin of the market, it makes sense that the cycle forecast predicts a downturn for Nvidia, aligning with expectations for the S&P 500.

“Yes, Nvidia is that influential. The chart interpreted by Larry Williams suggests that we might experience some pain as August ends, which could continue through mid to late October. I hope he’s wrong this time, but it’s wise to consider his analysis seriously. For my money, there’s a good chance he could be right, especially if Nvidia’s outlook isn’t strong.”

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.