CNBC’s Jim Cramer continues to have unwavering faith in the tech industry, particularly in companies like Nvidia. In a recent statement, Cramer reiterated his support for tech stocks and highlighted Nvidia and its “Magnificent Seven” peers as examples of their value.
Cramer acknowledged the skepticism surrounding the high valuation of tech shares, especially when their stock prices are on the rise. He admitted to having shared this skepticism earlier in his career when doubts about the value of tech stocks were prevalent. However, a cover story he read in Money Magazine forty years ago played a crucial role in altering his perspective.
The cover story, authored by a money manager, suggested that tech stocks would rebound after experiencing sell-offs. Initially doubtful, Cramer began to see the truth behind this theory as it played out in the market. This shift in mindset prompted him to bring Microsoft to Goldman Sachs, as well as invest in other tech stocks he believed would be successful, such as Apple and Nvidia.
Cramer argued that tech stocks, including Nvidia, deserve their premium valuation. While acknowledging that investors may be tempted to sell the stock, he emphasized the importance of recognizing the potential for significant growth. Drawing a parallel, he mentioned how similar doubts plagued Microsoft in the past, causing many to miss out on one of the most successful runs in history.
For those interested in learning more about investing, Cramer also offered his guide to investing as a free download. Additionally, individuals were encouraged to join the CNBC Investing Club to closely follow Cramer’s market moves.
It is worth noting that the CNBC Investing Club Charitable Trust holds shares of Nvidia, Apple, and Microsoft.