Jim Cramer Reiterates "NVIDIA, I Say Own It, Don't Trade It"

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer discussed along with macroeconomic conditions. Cramer noted the effects of the company being banned from sale in China during the episode, as he said:

“Maybe you could argue that NVIDIA was held back by a ban on selling even dumbed-down AI chips to China, which was initially partially repealed recently. But with NVIDIA still up more than 36% for the year, and China basically completely excluded from their numbers, it clearly didn’t do that much damage. It could be upside too if they shipped that H200 to China this spring, which is what press reports indicated earlier today. NVIDIA, I say own it, don’t trade it.”

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies. During the December 18 episode, Cramer mentioned the company and said:

“The rest of tech took its cue from Micron and broke the recent downtrend, even though the supply-demand situation for most of these companies, quite different from Micron. For instance, let’s say two of my favorites, Broadcom and NVIDIA, both of which are up today. They simply do not have the same situation at all… NVIDIA and Broadcom are what’s known as fabulous companies. They make their chips through Taiwan Semi. That’s who actually does the manufacturing. If demand overwhelms supply, it’s Taiwan Semi’s problem. That’s why even though Micron’s crying about demand, it doesn’t exactly translate to Broadcom and NVIDIA, unlike Western Digital and Seagate, which are basically in the same kind of business as Micron, albeit with less intellectual property.”

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.