Cramer's Morning Take: Nvidia 2/12/24

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

We are in a flop and chop mode. We are not doing anything other than just kind of like meandering here. And you know what, Jeff, I feel like the meandering has to do some with the CPI coming out, some with retail sales, and some with just the fact that we've been up 14 or 15 weeks and no one really knows what to do if you can't really come in and buy here.

Jeff Marks (0:27)

Yeah, look, you've seen some stocks that made new all-time high after new all-time high last week, pulling back a little bit, some healthy profit taking. You were saying on air, why is Palo Alto down about 1%. Well, it made a 6% move in a single day last week.

Eli Lilly was also another big winner last week after earnings, and some of the positive data it had around tris-epidide and mash. So I think that's what's happening. Meanwhile, you have energy doing well today, banks doing well. So a little bit of a reverse from what we've seen in tech and healthcare.

Jim Cramer (1:01)

Now, I do want to point out that there's an excellent note by Ben Righteous, who's been very right on Nvidia, talking about the 30-30 season, and obviously 30 earnings per share, 30 multiple.

Remember, he was the one who first said that maybe the multiple is like 16 when the stock was dramatically lower. I liked it because one of the things that Jensen, the CEO of the company, talks about, iPhone moment, that's what he uses. He said, look, it's hard to imagine, but everyone will have an iPhone. People will think like that.

Jeff Marks (1:33)

Yeah, and that's what he draws comparisons to, because he's saying, an investor once asked in 2007, why won't every person need an iPhone? And then recently he's being asked, well, why won't every server need to be accelerated? And he says the answer to both is yes. He thinks $30 in earnings is on the horizon. You put a 30 multiple, that's a 30-30. A nice play on home runs and steals now that we're kind of moving into baseball season. But that's how you get a $900 stock, and that's his two-year price target. Keep in mind, two-year price target.

But yeah, a real good note, he thinks concerns about 2025 being in down years have eased. That's why the stock has been up pretty much every single day since the start of the year.

Neck and neck now with Amazon, by the way, and market cap.

Jim Cramer (2:19)

How about that?

Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning meetings every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:39)

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 forward slash Investing Club Disclaimer.