Jim Cramer recently hailed Elon Musk, CEO of Tesla (NASDAQ: TSLA), as one of the most brilliant minds in history. In the wake of Nvidia Corporation’s (NASDAQ: NVDA) exceptional earnings report this week, Cramer elevated CEO Jensen Huang to an even loftier status.
Nvidia (NVDA) released exceptionally robust fourth-quarter earnings post-market closure on Wednesday, extending the streak of outstanding quarterly performances for the company. The announcement sent Nvidia shares soaring, igniting a widespread rally on Wall Street.
Jim Cramer, an early advocate of Nvidia and a longstanding admirer of Huang, expressed on CNBC’s “Squawk on The Street” on Thursday that the Nvidia CEO had shared a vision for the future with him several years ago. He suggested that this vision is now becoming a reality.
When questioned about whether he thinks Huang is a “bigger visionary” than Musk, he promptly replied with an unwavering “yes,” lauded the Nvidia CEO as “the GOAT,” shorthand for “greatest of all time.”
Cramer expressed that Musk can foresee future developments, but he believes that Jensen is contemplating a legacy centered around transforming the entire paradigm of the world. According to Cramer, Jensen is single-handedly instigating an industrial revolution.
Jim Cramer Calls for Tesla’s Removal from “Magnificent Seven”
In late January, Cramer praised Musk as “one of the greatest minds ever” following the success of Neuralink, the brain implant technology company of Musk, in conducting its inaugural human implant procedure.
However, Cramer’s stance on Tesla has become critical in recent months, citing broader concerns within the electric vehicle (EV) industry and the company’s underwhelming quarterly performances. He even suggested removing the EV manufacturer from the prestigious “Magnificent Seven,” a cohort of widely favored mega-cap tech stocks known for consistently surpassing broader market trends.
In contrast, Nvidia has consistently outperformed analyst expectations due to the increasing demand for its AI chips. During the Wednesday night conference call, Huang outlined a new vision for the future, foreseeing a scenario where every software enterprise company would eventually operate on Nvidia AI software.
Cramer underscored Huang’s remarks in which he talked about using the company’s chips for software applications. The Nvidia CEO spent a lot of time stressing that there won’t be a “difficult transition” period, he said, highlighting its importance due to concerns from analysts and investors about a potential gap.
Nvidia shares were up more than 16% at market close on Thursday, but Cramer believes the stock should be up even more. He stated that upon scrutinizing these figures, it became apparent how undervalued the stock was before the recent announcement.
Jim Cramer said,
“A stock that was very expensive eight weeks ago turns out to be reasonably valued, and that matters”.
He additionally mentioned that this represents one of the exceptional secular growth narratives.
Tesla (NASDAQ: TSLA) Stock Performance
TSLA stock rose 1.36% to close at $197.41 on Thursday. The traders had exchanged hands with 92,005,631 (92.00 million) shares compared to the average daily trading volume of 111.37 million.
