Cramer's Morning Take: Nvidia 8/24/23

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Jim Cramer (0:33)

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

Right off the bat, we get the Nvidia news, and then we're on to the next. We're almost as if that's done. Let's talk about Jackson Hole. Yeah. You've got to admit it's pretty amazing.

Jeff Marks (0:51)

Big day tomorrow, of course, with Fed Chair Jerome Powell speaking at Jackson Hole. Some interesting action today, because you would think, considering the blowout number from Nvidia and how much their revenue guidance was and how strong really their long-term outlook was, you'd think you'd see some outperformance in the NASDAQ today.

Jim Cramer (1:09)

Yeah, but I mean, Nvidia, look, I mean, Nvidia, there's been so many people, it's hard to find another guy who can come in now.

Jeff Marks (1:16)

All time high yesterday, all time high today.

Jim Cramer (1:18)

Right, I mean, look, Nvidia's fabulous. And you could argue that nothing goes straight to the sky and that this has got to go there, okay? And that's entirely possible. But look, we've had a view on Nvidia, which is own it, don't trade it, and I'm urging you not to trade it.

It doesn't make sense because it's the best in show. Maybe the best ever.

Jeff Marks (1:38)

Yeah, I think another thing, too, to point out about the Nvidia quarter is, and this is something you always talk about, is how when the numbers come out, the stock is actually gonna look a little bit cheaper than it was before. So I took a look at how the estimates changed overnight. So for fiscal year 24, it went from $8.29 to $9.60. For fiscal year 25, it went from $12.66 to $15.20.

Jim Cramer (2:04)

Wow.

Jeff Marks (2:04)

So that's a $2.60.

Jim Cramer (2:07)

Oh my.

Jeff Marks (2:08)

And then out of year, it went up another $1.30. So you can see that the earnings estimates continue to go higher and higher, which actually makes the PE multiple the next day.

Jim Cramer (2:18)

Right.

Jeff Marks (2:18)

Look a little smaller.

Jim Cramer (2:20)

Don't forget what they're doing. A lot of people feel the double. That's people who don't understand. They're in very close touch with their customers. That wouldn't happen.

Another thing that does happen in a bout, well, they're starting to make them right now. You have the Grace Hopper 200 They're not doing it in scale, but there's already another. There'll be another after that. The way that they have it is that we don't want to think about Moore's Law, the CPU, where you just keep making them smaller.

If you make them smaller, the form factor doesn't really help anymore. This is different. You make them bigger, make them burn less heat. I mean, that's what he's always trying to change.

Jeff Marks (2:55)

And let's talk this through for a moment because Grace Hopper's CPU plus GPU, could that be at risk to AMD?

Jim Cramer (3:03)

No, it's locked in entirely ARM. 100% ARM.

Jeff Marks (3:06)

It's an ARM-based architecture.

Jim Cramer (3:09)

They're going out of their way to say it's not AMD and it's not Intel. It's not, they say it's not x86.

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