In a recent CNBC segment, Jim Cramer emphasized the importance of holding onto Nvidia stock amid the AI revolution. He advised investors to keep Nvidia as a long-term investment rather than trading it, emphasizing the company’s dominance in the AI chip market. Nvidia recently surpassed Wall Street’s profit expectations, reaching a share price of over $1,000 for the first time. Despite a challenging day for the broader market, Nvidia’s stock performed well, gaining over 9%.
The company’s quarterly revenue exceeded estimates by $2 billion, with a significant increase in data center revenue. Nvidia’s high-performance chips are in high demand among companies developing AI applications, with major customers including Microsoft, Google, Amazon, and OpenAI. Cramer pointed out that Nvidia consistently beats earnings expectations and encouraged investors to take the time to understand the company’s business model, as many on Wall Street do not fully grasp its operations.
While some skeptics may suggest that Nvidia is losing customers, Cramer refuted these claims, stating that the company’s clients are actually seeking its product. Despite requests for comments, Nvidia declined to provide a response.
In addition to discussing Nvidia’s success, Cramer also highlighted the impressive performance of the company’s stock in a declining market. He emphasized the importance of understanding the companies in which one invests, especially in the tech sector where innovative technologies like AI are driving growth.
Overall, Cramer’s analysis of Nvidia’s position in the market underscores the company’s strong performance and demand for its products. He encourages investors to consider Nvidia as a valuable long-term investment, particularly in the rapidly evolving AI industry.
The segment concluded with a reminder for investors to register with the CNBC Investing Club to stay updated on Jim Cramer’s market insights. The disclaimer disclosed that CNBC Investing Club Charitable Trust owns shares of Nvidia, Microsoft, Meta, Amazon, and Alphabet.
For those interested in reaching out to Cramer, contact information was provided, along with links to his social media profiles for further engagement. The segment showcased Cramer’s positive outlook on Nvidia’s future prospects in the AI market and reiterated the importance of understanding the companies in which one invests for long-term success.
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https://www.cnbc.com/2024/05/23/jim-cramer-warns-against-trading-nvidia-after-blowout-quarter.html