Cramer's Morning Take: Nvidia 2/27/25

SPEAKER_1 (0:00)

This is a message from sponsor Intuit TurboTax. Taxes was getting frustrated by your forms. Now Taxes is uploading your forms with a snap, and a TurboTax expert will do your taxes for you. One who's backed by the latest tech, which cross-checks millions of data points for absolute accuracy. All of which makes it easy for you to get the most money back guaranteed. Get an expert now on turbotax.com, only available with TurboTax Live full service. See guarantee details at turbotax.com/guarantees.

SPEAKER_2 (0:31)

Are you still quoting 30-year-old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcard, based on the February 2024 Nelson Report.

Jim Cramer (1:00)

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

Jeff Marks (1:08)

We've de-rest the portfolio to a degree from some of the tariff exposure.

Jim Cramer (1:14)

Painful, no, well, actually not that painful except for consolation. But what I see happening here is that you have NVIDIA up nicely and then the statement comes out and then NVIDIA drops. And if you are in a Wells Fargo, the statement comes out, doesn't do anything. And you can buy BlackRock and it doesn't do anything. So we have to be aware. Lending.

Jeff Marks (1:39)

Another one that just keeps moving up. Yeah.

Jim Cramer (1:42)

And we're having a new, it's a new market and it's a market where you have to take into account whether it can be tariffed or not or whether it will be tariffed or not.

Jeff Marks (1:51)

Yeah. I mean, the thing about NVIDIA though, and we're seeing some pullbacks again in that whole kind of theme AI infrastructure, although they were initially higher. Quarter was good.

Jim Cramer (2:01)

Quarter was very good. Quarter was good.

Jeff Marks (2:03)

You had a revenue beat by 1.2 billion, driven by data center sales, right? That's really where it counts, 2 billion there. Earnings better than expected. Blackwell, 11 billion. Much better than the several billion we've heard from management.

Jim Cramer (2:16)

It's just a huge number.

This was done in a very difficult gap period where they didn't have everything working right. It was a monumental quarter, but they have China risk, they have Taiwan risk, and people just say, well, you know what? I can't be in that. Now, I'm going to urge you to understand this is like 19 times earnings. We're going to continue with the hold, not sell. But that's because the company is fantastic. And yes, there could be any day now, it'll be a Taiwan jar, any day. So keep your powder dry. But understand, you're keeping your powder dry not because of anything that's happening at the company. You're doing it because of something that might happen with the present.

Jeff Marks (2:53)

And look, revenue was better than expected to by a billion. Gross margins had touched light, but they're going to improve through the year, return back to the mid 70s as Blackwell ramps up. Jim, what about your thoughts? You know, there's obviously been a lot of volatility here ever since Deep Sea came out, that low cost efficient large language model. But I think Jensen pushed back pretty well last night on the idea that it's only going to increase the need for compute. Three scaling laws, pre-training still growing, post-training scaling, but also this test time scaling application, which they also call long thinking. Just more compute at inference to improve accuracy needed.

Jim Cramer (3:33)

Look, I'm going to talk about stepping back tonight and just saying, okay, well, look, let's be really obvious about this. What goes down is something that could be tariffed, and what goes up is something that's difficult to be tariffed. And that's it. I mean, it's very hard to tariff a brinker. Texas Roadhouse, big winner here. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive warning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_5 (4:10)

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.