NVIDIA Corporation (NASDAQ:NVDA) is among the stocks in focus, as Jim Cramer analyzed the broader market impact of the recent AI data center rally. Cramer said that the company “really hasn’t done much of late,” as he remarked:
It’s worth filling you in on the disappointment… Because I want you to understand my skepticism now about the rally… Why don’t we start with a big winner so you can put them in context? They’re heavily involved with one industry, I want more than that, the data center, of course. First, we have the big four of memory: Western Digital, Sandisk, Seagate, and Micron… Even a purist like me doesn’t want the market to be led by the stocks of companies that are basically sold out and can just raise prices but not do more than that. We want to be led by companies like NVIDIA, which are producing product and selling it as soon as it comes out because it’s so desired. NVIDIA deserves a premium price-to-earnings multiple; these companies, not so much. But NVIDIA really hasn’t done much of late.
Photo by Christian Wiediger on Unsplash
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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