Jim Cramer says to consider Nvidia, JPMorgan Chase, Crowdstrike

Investors need to be more selective after the market’s recent rally, CNBC’s Jim Cramer said Tuesday, warning that buying stocks near their highs is often a “license to lose money.”

In a choppy session that saw sharp moves in major indexes, Cramer said investors should avoid chasing stocks that are already up 30% or 40% for the year and instead wait patiently for better entry points.

The Dow Jones Industrial Average closed the session down 466 points, or 0.94%.

Cramer warned against the recent enthusiasm for oil stocks, arguing that investors who bought producers near recent highs could be vulnerable if Venezuela increases production and pressures crude oil prices.

Even as he said the group was chronically undervalued, he also noted short-term risks at the banks ahead of earnings season.

Cramer said JPMorgan Chase It looks cheap at around 16 times earnings, but CEO Jamie Dimon has warned that he tends to highlight risks when conditions are strong – a comment that could temporarily weigh on the stock.

Cramer also stated: CrowdStrike It fell nearly 100 points from its November highs before rebounding. He added that geopolitical instability, including political turmoil in Venezuela, has historically increased hacking activity and strengthened demand for CrowdStrike services.

Likewise Cramer praised Nvidia CEO Jensen Huang, who recently described CrowdStrike as an essential cybersecurity provider supporting $10 trillion in AI-driven enterprise transformation. He also reiterated his confidence MicrosoftAside from heavy AI spending, long-time favorites Nvidia and broadcom.

“Sure, have some unloved tech names, but make room for a quality consumer [stock]” said Cramer.