You can still find stocks to buy on tough days in the market
The rise in oil and hot inflation data rattled the stock market on Wednesday, leaving investors with little room to hide. But according to CNBC’s Jim Cramer, there’s still room for scrutiny in select stocks.
“If I didn’t own him, I’d buy his shares.” NvidiaSpeaking on “Mad Money,” Cramer explained that the choice of the AI leader and the CNBC Investment Club is not linked to the Iran war or tied to stagflation concerns. “The lack of growth has more to do with the structure of the market. Nvidia is very over-owned right now.”
Despite positive updates and stellar earnings over the past eight months, Nvidia’s shares have been muted. Cramer believes this could finally explode if everything the company announced at this week’s GTC developers event comes to fruition, including a new inference chip and $1 trillion Blackwell and Vera Rubin orders expected by 2027.
Cramer was at the conference in California earlier this week and was interviewed by the very positive Jensen Huang for his “Mad Money” show Tuesday night. The CEO expanded on these announcements and named AI agent maker OpenClaw as the next ChatGPT.
Cramer said stocks like Nvidia are “too cheap to avoid” on a forward price/earnings basis and cautioned against buying some, but not too much, due to macro uncertainty. Analysts at Cantor Fitzgerald predict a path to $15 earnings per share in 2027; if that happens, it would put Nvidia shares at around 12 times 2027 EPS estimates. The S&P 500 trades 18 times.
As for the broader market, Dow Jones Industrial Average It ended Wednesday with the lowest close of 2026, down more than 750 points (1.6%), due to fears of inflation fueled by rising oil prices resulting from war and a hot wholesale inflation report for February measured before the US and Israel attacked Iran on February 28. The first gains in oil did not come until the first trading day on March 2. S&P 500 fell 1.36 percent Nasdaq It fell by 1.46 percent.
Fed Chairman Jerome Powell’s comments Wednesday afternoon offered no reassurance after central bankers kept interest rates steady. Powell said inflation has not slowed as much as policymakers had hoped. But he eased stagflation fears by saying unemployment was nowhere near the levels associated with the 1970s-type economy, when unemployment rose rapidly and prices were sky-high.
But Cramer acknowledged that it’s harder to find good stocks in the current environment, which brought him back to Nvidia, calling it “one of the fastest-growing companies with the lowest valuations.”
He added that such a combination was “always tempting.” He stated that pressures such as high oil prices and the fact that the Fed’s candidate to replace Powell may not be able to lower interest rates could put pressure on Nvidia shares in the short term.
“However [that] “It has absolutely no bearing on Nvidia’s long-term prospects.”
