Cramer's Morning Take: Nvidia 11/21/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. We have a very confused market, Jeff, because if you have a stock that goes up, after being down a lot, like Nvidia, and it goes up a couple of bucks, and there's like heat-sick missiles going against it, what I'm seeing is a market, and it knocks it back down. I'm seeing a market that doesn't want to go higher. I'm seeing a market that basically says, if we have gains, let's take them. It's a very scalper-oriented market. And so what happens is that as long as yields are the same, you have people come in, you have people want to exit. But right now, we have a lot of exits, unless a stock is bulletproof, it gets sellers.

Jeff Marks (0:44)

Yeah, it's a pretty volatile morning. I mean, NVIDIA is a prime example of that. Down last night, up pre-market. I think it got as high as maybe 2%, 3% just today, and now back down 1%. So, you know, it's digesting the earnings report last night, which by the way, very strong core.

Jim Cramer (1:04)

Right, I mean, let's look at this. Okay, so this morning, it's at 140, all right? And I'm commenting on it very early, probably on Twitter or whatever. Then it goes all the way up here. And at this point, I say, wait, well, not 160 I said, guys, it can't be that good. Don't come in and buy it up. Because you don't want to buy it up because there's a lot of people who bought it at 141, and they want to just make a quick profit. There's a lot of scalping going on in the name. And that's because, Jeff, I know this sounds strange, but the conference call was really good, but it was hard. And when you take, we all remember our classes, we may be in high school or college. If it's a hard class and you're being graded hard, you're going to go to another place, maybe different class. I think there are people who are on that call and they gave up. They didn't understand it and they moved on.

Therefore, they were trading blind. We have, I think, the model that bests, your Bolton best explains what's great about, in English.

Jeff Marks (2:05)

Look, it's graded so hard because it's up almost 200% year-to-date. The market is used to upside on revenues by multiple billion. Same thing with guidance, multiple billion. What they do, it was still beats and guidance was above expectations, but no one really knows, is one billion enough, two billion enough, half a billion enough. But in terms of the story, they ship more Blackwell than they thought in the quarter, overheating, not a concern. Demand expected to exceed supply for several quarters in fiscal 26, that's for the Blackwell. Sovereign AI initiatives gaining momentum, the cloud customers taking whatever they can really get their hands on. And then over the last couple of weeks, there was this concern about maybe these large language models have kind of reached a critical mass that they're stalling out. But they downplayed that as well.

Jim Cramer (2:58)

Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:10)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.