It’s an open secret that Nvidia Corp. NVDA is one of Jim Cramer’s favorite stock names, and despite all the negative psychology attached to his recommendations, shares of the graphic processor manufacturer have done fairly well.
What Happened: Following Nvidia’s GTC keynote presentation by its CEO Jensen Huang, Cramer had nothing but praise for the company.
Referring to OpenAI’s generative GPT AI model using Nvidia AI chips, the stock picker said, “OpenAI would not exist without Nvidia.” He noted that the company delivered the first DGX Supercomputer to OpenAI seven years ago in 2016.
Cramer did not sound bothered about the stock running up nicely of late. In the past six months, the stock has risen about 99%. Since the stock bottomed at $108.13 (intraday) on Oct. 13, it has added a whopping 142%.
“But Nvidia is now making cards that will create the unimaginable for all,” the CNBC “Mad Money” host said.
“It is that powerful a story and its lead is stunning.”
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Why It’s Important: Nvidia is considered the chipmaker at the forefront of the AI revolution.
Commenting on the GTC event, KeyBanc Capital Market analyst John Vinh said he came away from the event with increased confidence in NVDA’s unique position in semis to best monetize AI across all fronts including hardware, software, service and systems.
The average analysts’ price target for the stock is $268.78, suggesting roughly 2.6% upside potential. The company's huge addressable market opportunity and its AI inferencing and training expertise could support multiple expansion from current levels, analysts say.
Shares of NVIDIA were trading 2.74% higher at $269.18 on Wednesday at the time of publication, according to Benzinga Pro data.
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