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Jim Cramer Says NVIDIA’s (NVDA) Numbers Were ‘Excellent’

Jim Cramer Says NVIDIA’s (NVDA) Numbers Were ‘Excellent’

  • 17.03.2025 18:46
  • msn.com
  • Keywords: Yemen, Houthi, Iran, U.S., Israel

Jim Cramer praised NVIDIA's strong quarterly results but highlighted ongoing challenges, including market pressures and competition. Meanwhile, Trump warned Iran of consequences for Houthi rebels' attacks in Yemen and the Red Sea, escalating tensions in the region.

Nvidia ReportsNVDAsentiment_satisfied

Estimated market influence

NVIDIA Corporation

NVIDIA Corporation

Positivesentiment_satisfied
Analyst rating: Strong buy

Jim Cramer praised NVIDIA's quarterly numbers as 'excellent' and highlighted their strong performance in data centers. However, the company faces challenges such as tariff issues, competition from other tech giants like Apple and AMD, and market expectations for high growth which may pressure its stock.

Baron Fifth Avenue Growth Fund

Positivesentiment_satisfied
Analyst rating: N/A

The fund mentioned NVIDIA's strong quarterly results and their belief in the company's leadership in AI and accelerated computing. They noted the potential risks but remain confident in NVIDIA's position.

Context

Business Insights and Market Implications Analysis

NVIDIA Corp (NASDAQ:NVDA)

  • Jim Cramer's Comment: Described NVIDIA's quarterly numbers as "excellent," with solid sales and earnings exceeding expectations. Highlighted strong guidance driven by new high-end Blackwell chips.
  • Revenue Breakdown: 50% of revenue comes from large cloud providers, which are reevaluating their spending amid competition from low-cost chips like DeepSeek.
  • Q1 Guidance:
    • Revenue growth: 9.4% QoQ (down from previous 12%).
    • Adjusted margin: Expected to drop significantly to 71%.
  • Market Reaction: The market may continue to pressure NVIDIA due to unmet growth expectations and declining revenue growth rates.

Competitive Landscape

  • Key Competitors:
    • Apple, Qualcomm, AMD, Amazon (Trainium2 AI chips), and Intel are vying for TSMC’s 3nm capacity.
    • Amazon's Trainium2 chips offer cost savings and superior computational power, potentially shifting AI workloads away from NVIDIA.
  • Supply Chain Risks: Competition for TSMC’s 3nm process nodes could limit NVIDIA’s access to critical chip manufacturing.

Strategic Considerations

  • Baron Fifth Avenue Growth Fund:
    • Acknowledges NVIDIA's leadership in accelerated computing and AI but notes concerns about growth expectations and competitive dynamics.
    • Maintains conviction in NVIDIA's ability to innovate and adapt, citing robust margins and a dominant data center presence.

Market Positioning

  • Ranking: NVIDIA ranks 1st on the list of stocks Jim Cramer discusses.
  • Alternative Opportunities: The article suggests under-the-radar AI stocks with lower valuations (e.g., less than 5x earnings) may offer higher returns in a shorter timeframe.

Conclusion

NVIDIA’s strong performance and innovation position it as a leader in AI and high-performance computing. However, challenges such as declining growth rates, competitive pressures, and market expectations for hyper-growth could weigh on the stock in the near term. Investors should monitor NVIDIA's ability to maintain its dominance while navigating these headwinds.