Jim Cramer Says "Own NVIDIA, Don't Trade It"

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer commented on, along with the recent Fed meeting. Commenting on the events of the day, Cramer said:

“We had something very strange today, a story about how the Chinese government wants a full stop in buying NVIDIA’s artificial intelligence chips for some of the biggest clients. Those are the ones, they’re are made for China. We thought they’d be welcome there. Very confusing, very fluid story. Now, I have to tell you that the Chinese narrative has become the defining story with NVIDIA, and I think that is dead wrong. There’s lots of positions in play here.

You could argue that this is a ploy, something that can change on a dime when the president talks with President Xi about the People’s Republic… You could argue that NVIDIA looks like it’ll be shut out of the market, that’s worth about $50 billion in sales per year. Right now, NVIDIA has no China numbers… so don’t expect number cuts. That’s why I don’t think there was a reason to sell here. Me? Well, shocker. I say own NVIDIA, don’t trade it. And if you can get some in at the 160 level, oh boy, I’d be a buyer.

NVIDIA’s at the heart of AI. The new chips that are coming out are way ahead of the current ones. The Chinese government needs to be mindful not to shoot itself in the foot. Other countries will get these chips, which will take AI to levels where it can truly surpass humans in many different kinds of problem-solving and surpass all those Chinese companies, too. NVIDIA now has the worst-case scenario in China. Everyone knows that. I think that’s your best chance to buy.”

NVIDIA Corporation (NASDAQ:NVDA) develops computing solutions spanning graphics, AI, data center platforms, networking, and cloud services, with applications across gaming, robotics, autonomous vehicles, and enterprise AI.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, 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.