Cramer ponders the qualities needed to remain loyal to successful market leaders, like Nvidia.
- On Thursday, CNBC's Jim Cramer advised investors to persist with winning stocks, even when faced with skepticism.
- "To succeed in investing in Nvidia, you must go against the conventional wisdom of modern-day investing in this country, said he. "A healthy dose of skepticism is necessary, but if you want to make money in the stock market, you need to have faith in something.""
Sometimes, investors should disregard critics to discover and maintain successful stocks, advised CNBC's Jim Cramer on Thursday as stock prices reached new heights.
"To succeed in investing in Nvidia, you must go against the conventional wisdom of modern-day investing in this country, said he. "A healthy dose of skepticism is necessary, but if you want to make money in the stock market, you need to have faith in something.""
In 2017, Cramer named his dog after Nvidia, and on Wednesday, the company reported earnings that surpassed Wall Street's expectations, fueled by the demand for its AI products.
Cramer believes that many investors were too fixated on macro events, such as the Federal Reserve's interest rate hikes, and failed to recognize the long-term potential of stocks like Nvidia. Additionally, some investors were deterred by Nvidia's size, viewing any entity that generates significant profits rapidly with suspicion.
Cramer remembered a time when CEO Jensen Huang demonstrated the capabilities of generative AI to him, which he found unique, but Wall Street did not fully grasp the power of Nvidia's technology until it became more mainstream.
"Cramer stated that Jensen and his team were aware that it was only a matter of time, so they were prepared with hundreds of thousands of graphics cards for the moment of magic."
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.
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