Jim Cramer Notes NVIDIA (NVDA) is "Safely Back Above the $3 Trillion" Market Cap

We recently published a list of 15 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks on Jim Cramer’s radar

On Friday’s episode of Mad Money, Jim Cramer reflected on this week’s market performance, with attention to upcoming earnings reports and broader market sentiment.

“Now we’ve been on a real rebound since post-Liberation Day meltdown back in the first week of April, with tech leading the way after really taking it on the chin.”

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According to Cramer, the rebound has been largely driven by tech stocks, which had previously been under pressure. However, he expressed uncertainty about whether that trend will hold, as he mentioned that the tech sector has been relatively quiet in terms of news, aside from a keynote from Jensen Huang. Looking ahead, Cramer noted that more retail earnings are expected this week.

“But here’s the bottom line: Unless we get news of new hostilities in the trade war with China, I think this market’s propensity will still be to go higher, even though we are overbought. And even with this late-night credit rating downgrade of the US debt, which is very quizzical to me, I think we’re containing the downside of the economy, and that means no recession, which tells me the negativity may be out of sync with the reality. That’s often the best kind of market…”

Our Methodology

For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

Cramer started his game plan for this week with NVIDIA Corporation (NASDAQ:NVDA) as he commented:

“We tend to focus on what’s going to happen next, and what’s going to happen next is that Jensen Huang is going to give the COMPUTEX keynote speech, and it’s going to come Sunday night. Now I’m hearing there’s going to be some dazzling new products and ideas. This speech will be online streamed at 11:00 PM Eastern.

Now, I can’t figure out whether to watch it live or the moment I get up, but I won’t dare to come to work without knowing what Jensen is saying. Now we know NVIDIA stock rallied 16% this week and is now safely back above the $3 trillion in market cap number. That’s the beneficiary of a huge bevy of orders from the Gulf monarchies.

By the way, turns out they have a lot more CoreWeave than we thought, and that stock took off today. Now, I wouldn’t be surprised if NVIDIA has more room to run, particularly because there are a lot of people who felt that it should never have been at $3 trillion in the first place, and they’ve been proven wrong.”

NVIDIA Corporation (NASDAQ:NVDA) provides computing solutions that include graphics, networking, and AI platforms, serving industries such as gaming, data centers, professional visualization, and automotive technology.

Overall, NVDA ranks 1st on our list of stocks on Jim Cramer’s radar. 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 AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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