A sharp rise in oil prices and hot inflation data rattled the stock market on Wednesday, leaving investors with little place to hide. But CNBC’s Jim Cramer says there’s still room for some stocks to nibble.
“If I didn’t own it, I would buy the stock.” Nvidia“The lack of upside has more to do with the structure of the market,” Cramer explained on “Mad Money” that the selection of AI leader and CNBC Investment Club is not tied to the Iran war or to concerns about stagflation. NVIDIA is currently overowned. ”
Over the past eight months, Nvidia’s stock price has languished despite positive information and impressive earnings. Kramer believes that if everything the company announced at this week’s GTC developer event comes to fruition, including new inference chips and an expected $1 trillion order from Blackwell and Vera Rubin by 2027, things could finally turn around.
Kramer attended a conference in California earlier this week and interviewed highly bullish Jensen Huang on Tuesday night’s “Mad Money.” The CEO expanded on these announcements, calling AI agent maker OpenClaw the next ChatGPT.
Cramer said stocks like Nvidia are “inevitably too cheap” based on future price-to-earnings ratios, and said macro uncertainties mean people should buy some, but not a lot. Cantor Fitzgerald analysts expect 2027 earnings to be $15 a share, which would give Nvidia stock roughly 12 times 2027 EPS estimates. The S&P 500 trades at 18x.
When it comes to the wider market; Dow Jones Industrial Average Wednesday’s close ended at a 2026 low, down more than 750 points, or 1.6%, on inflation fears fueled by high oil prices due to the war and high wholesale inflation reports in February, measured before the U.S. and Israel’s Feb. 28 attack on Iran. The first spike in oil prices did not occur until the first trading day on March 2nd. S&P500 fell 1.36%. Nasdaq It fell by 1.46%.
Federal Reserve Chairman Jerome Powell’s comments Wednesday afternoon were not reassuring after central bank officials left interest rates on hold. Powell said inflation did not slow as much as policymakers had expected. But he allayed fears of stagflation, saying the unemployment rate is nowhere near the levels associated with a 1970s-style economy, with soaring job losses and soaring prices.
But Kramer acknowledged that the current climate makes it difficult to find good stocks, which is why he came back to Nvidia, calling the company “one of the fastest growing companies at one of the lowest valuations.”
Such combinations are “always attractive,” he added. He said pressures such as rising oil prices and the Fed’s inability to lower interest rates under President Donald Trump’s nominee to replace Powell could weigh on Nvidia shares in the short term.
“But that doesn’t matter at all for Nvidia’s long-term prospects.”
