It’s no secret that CNBC’s Jim Cramer is a longstanding supporter of semiconductor giant Nvidia. Ahead of the Big Tech company’s quarterly report, which it will release after Wednesday’s close, Cramer reminded investors why he feels so strongly they should buy, not trade, Nvidia stock.
“Hey, maybe I’m still a believer, but I do know why,” Cramer said. “Nvidia deserves its valuation, and if they take a whack at it tomorrow, when they report—remember, Friday’s another day.”
Cramer conceded that some on Wall Street may be suspicious of the fast and furious growth of Nvidia’s market capitalization, but said he thinks this success is warranted and poised to continue. He likened Nvidia CEO Jensen Huang to popstar Taylor Swift, saying their success is unparalleled in their respective fields.
“They share kinetic energy and brilliance, and neither’s anywhere near their pinnacle,” he said. “When it comes to artificial intelligence, we could be so early that Nvidia’s equivalent of the ‘Eras Tour’ might still be years away, with a string of hits that’s the envy of the industry.”
Investors shouldn’t overlook Nvidia’s importance in the artificial intelligence space, Cramer added. He suggested many new AI products are all “spawn of Nvidia,” and that as revolutionary as Nvidia software is now, the company probably has more advanced technology in the pipeline.
“Open your eyes, people,” Cramer said. “If you think that Nvidia’s quarter is one and done, you’re also thinking that AI is one and done.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.
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