Jim Cramer shared his insights on Monday regarding the recent changes in the Dow Jones Industrial Average. He emphasized the importance of owning Nvidia Corp. NVDA rather than trading it.
What Happened: On Monday, the CNBC “Mad Money” host noted on X that there is minimal money indexed to the Dow, suggesting Nvidia should return to its previous trading levels from Friday.
“Other side of the trade? Own Nvidia, don’t trade it, but you need to know that there is virtually no money indexed to the Dow so Nvidia should got to where it was Friday during regular trading and same with Intel,” he wrote.
This comment comes in light of Nvidia’s recent inclusion in the Dow Jones Industrial Average, replacing Intel Corp. INTC, which ended its 25-year presence on the index. The announcement was made by S&P Dow Jones Indices.
Why It Matters: Nvidia’s stock has soared, driven by the increasing demand for AI capabilities. The shares have surged over 186% since the start of the year, benefiting from the AI boom.
Meanwhile, the company’s CEO, Jensen Huang, has been proactive in accelerating the delivery of next-generation memory chips from SK Hynix Inc.
Intel is also struggling with its Gaudi AI chips, highlighting the challenges it faces in keeping up with Nvidia’s rapid growth. Intel’s revenue from these chips is expected to fall short of targets due to a slower-than-anticipated adoption rate.
Price Action: On Monday, Nvidia was trading 1.91% higher during pre-market hours, according to Benzinga Pro.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
