Jim Cramer Reflects On Nvidia's Success After Shares Hit Record High On Thursday: 'Do Opposite Of Everything That Captures Conventional Wisdom'

Jim Cramer has urged investors to look beyond skepticism and embrace winning stocks, using NVIDIA Corp NVDA as an example.

What Happened: Cramer, in his show “Mad Money,” highlighted the importance of believing in a stock’s potential, especially when it defies conventional wisdom. He cited Nvidia’s remarkable performance as a case in point, reported CNBC.

The company’s recent earnings report, driven by a surging demand for its AI products, surpassed Wall Street’s expectations. Cramer, a long-time Nvidia supporter, believes that many investors overlooked the stock’s long-term prospects, focusing instead on macro events like the Federal Reserve’s interest rate hikes.

He also noted that Wall Street underestimated Nvidia’s technology, which he found unique. Cramer recalled a moment when Nvidia’s CEO, Jensen Huang, demonstrated the potential of generative AI, long before it gained mainstream popularity.

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“To nail Nvidia, you needed to do the opposite of everything that captures the conventional wisdom of modern-day investing in this country,” Cramer said.

“A certain amount of skepticism is healthy, but if you’re trying to make money in the stock market, you’ve got to believe in something.”

Why It Matters: This isn’t the first time Cramer has spoken out in support of Nvidia. He recently questioned the skeptics of Nvidia as the company’s stock soared to new heights. Cramer challenged those who had previously criticized Nvidia, asking where they were as the stock broke records.

Following Nvidia’s blowout earnings report, Cramer also praised CEO Huang as a visionary, placing him on a pedestal alongside Tesla‘s Elon Musk. Cramer credited Huang’s long-term vision for Nvidia’s success, a vision that he had shared with Cramer several years ago.

Earlier, Cramer had also commended Nvidia for its record revenue during the first earnings season of 2024. He emphasized the need for a longer-term vision, which he believed was demonstrated by Nvidia’s impressive financial report.

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