Jim Cramer reaffirms his belief in a 'own it, don't trade it' approach to investing in NVIDIA, citing the company's dominant position in AI-driven semiconductor demand and sustained revenue growth. The strategy underscores confidence in NVDA's long-term fundamentals despite short-term market fluctuations.
- NVIDIA's revenue reached $26.9 billion in fiscal Q3 2025, up 217% year-over-year
- Gross margins for NVDA held steady at 77% in Q3 2025
- NVDA's market cap exceeded $2.2 trillion in early 2025
- Mutual fund and ETF ownership in NVDA increased by 34% over 12 months
- Cramer contrasts NVDA’s stability with short-term volatility in AAPL and CL=F
- Emphasis on long-term ownership over active trading in AI-driven semiconductor stocks
Jim Cramer has reiterated his preference for a long-term, hands-off investment strategy toward NVIDIA (NVDA), urging investors to avoid frequent trading in favor of sustained ownership. Speaking during a recent market update, Cramer emphasized that NVDA’s role as a foundational player in artificial intelligence infrastructure justifies holding the stock through market volatility rather than reacting to daily price swings. The rationale centers on NVIDIA's financial performance, with revenue climbing to $26.9 billion in fiscal Q3 2025, a 217% year-over-year increase, driven primarily by data center segment growth. Gross margins remained robust at 77%, highlighting pricing power and operational efficiency. Cramer noted that NVDA's market capitalization surpassed $2.2 trillion in early 2025, making it one of the most valuable companies globally. He contrasted this with the volatility seen in broader tech sectors, citing Apple (AAPL) and crude oil (CL=F) as examples of assets subject to short-term sentiment shifts. While AAPL’s stock fluctuated around $200 during early 2025 due to supply chain concerns and consumer demand uncertainty, and CL=F saw price swings exceeding 12% in a single month, Cramer argued that such volatility is less relevant for investors with long-term horizons in high-growth stocks like NVDA. Cramer’s stance reflects a broader market trend where institutional investors are increasing allocations to semiconductor equities. According to public filings, mutual fund and ETF holdings in NVDA rose by 34% over the past 12 months, indicating growing confidence in its long-term trajectory. The strategy, he said, is not about timing the market but about recognizing structural advantages in AI-driven semiconductor demand.