Cramer's Morning Take: Nvidia 5/23/24

Jim Cramer (0:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (0:07)

Let's focus on NVIDIA earnings first, because I think this is obviously the big key. There were concerns about an air pocket headed in. There was that story the other day that Amazon delayed buying Grace Hopper in anticipation of Blackwell. Couldn't be less the case.

Jim Cramer (0:25)

Yeah, totally untrue, and if you looked at today's earnings and looked at what the year's gonna be versus at the beginning of the year, you see that at the beginning of the year, the company was getting a high single, a high teens multiple, which is ridiculous.

And that's because this thing is growing much faster than anybody realizes. It's really incredible.

Jeff Marks (0:48)

Well, I even looked at what it was versus April 30th.

So you had for Q2, the estimates now $6.33. It was $5.91 on April 30th. And then for the full year, estimates went to $26.59. It was $24.82 just a couple of weeks ago. So a good example, maybe we can keep the Nvidia chart up there.

Of how the earnings, when they're kind of in this upcycle, they continue to outperform. It's why it looks cheaper in hindsight. Also got a 10 for 1 stocks, but you were pressing Jensen.

Jim Cramer (1:22)

I felt bad I pressed for that, but they gave it to us. But I will point out, okay, so they have this new device, Blackwell, which is backward, as you say, you can use the H100.

They're all backwards compatible.

Jeff Marks (1:33)

So think of it, if you were a gamer at home and you bought a new Xbox, you could still play some of the older Xbox games on it.

Jim Cramer (1:39)

Yes, but in the after hours, what you saw was when they said, listen, there'll be Blackwell, lots of Blackwell revenue this year, it just caused the stock to jump big.

Jeff Marks (1:48)

Yeah, absolutely. Demand exceeding supply for quite some time.

Customers can't risk necessarily waiting for a product transition because that puts them at risk of losing their technology leadership, which is everything in this fast moving market where we're seeing AI breakthroughs, I don't know, every couple of weeks. Probably even sooner, that's not even that we're hearing. I'm just talking about ChatGPT versus Google and Gemini.

Jim Cramer (2:14)

I mean, I think that the emphasis on auto surprised me because I'm not a Tesla stock fan, but those of you who own Tesla stock, hold on to it because that's how bold his claims were about what they're going to be able to do in auto, which is extraordinary.

Jeff Marks (2:29)

And he's not worried about these hyperscalers making their own kind of homegrown custom chips. NVIDIAs are higher performing, lower total cost of ownership, much more efficient, so that obviously adds another, adds to the bulk case there.

And so just all confirming this, own it, don't trade it.

Jim Cramer (2:54)

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