CNBC’s Jim Cramer on Thursday explained why he encourages investors to have faith in good growth stocks and trust that they can make money in the market.
“Good things actually do happen to growth stocks, they do. You got to accept that. You got to own it. And you have to trust the market itself, because if you do, you’ve been able to make a ton of money in the past,” he said. “If you don’t trust the stocks, you’ll miss out on enormous gains by trading in and out and in and out…constantly buying high and selling low.”
He used Nvidia as an example, explaining why the artificial intelligence powerhouse is his all-time favorite stock.
The chipmaker posted a top and bottom line beat Wednesday afternoon, but the stock slipped as Wall Street worried about lighter-than-expected data center revenue. By Thursday’s close, shares were down 0.79%. With a market cap of more than $4 trillion, Nvidia is the largest company on the market.
Nvidia designs chips used for the latest generative AI technology, and Big Tech hyperscalers are shelling out billions to buy them. According to Cramer, generative AI has not yet reached its potential. He suggested it will have countless uses across the business sector, from factories to law firms.
Cramer indicated that Nvidia will continue to succeed because its products are uniquely positioned to change the world, and the company is “reinventing the very concept of work.” He also expressed confidence in the utility of the next generation of Nvidia’s chips, which is set to be released next year.
“Our job, meaning your and mine and all of the other people interested in stocks, is supposed to be finding the ones that can go up a great deal, making us the most money,” he said. “I think the market that Nvidia dominates is the biggest in the world.”
Nvidia declined to comment.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Nvidia.
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