CNBC host Jim Cramer has been a longtime supporter of Nvidia (NASDAQ:NVDA), regularly praising Chief Executive Jensen Huang's leadership and urging investors to hold the stock even during volatile periods.
CNBC anchor Jon Fortt shared data in a recent program showing that Nvidia shares are up 4,600% since Cramer first recommended it in June 2017.
"Nvidia stock is now up more than 4,600% since then," Fortt said. "So if you had invested a little more than $20,000 that day, you’d have a million dollars from just that."
Don't Miss:
- Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Just $0.81 a Share
- Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself
Cramer told Fortt that he once used to think Nvidia was just a gaming chip company. His perception was changed 12 years ago when he visited a facility of the German luxury car manufacturer Audi. After touring the facility and seeing what he called "technological marvels," Cramer asked which company supplied the chips.
"He said, ‘It's Nvidia.' I said, ‘No, I'm sorry, that's a gaming chip company.' He goes, ‘Actually, no, you should be corrected here. It is a company that has tremendous chips that are also in gaming.' And that got me thinking," Cramer said.
‘Someone Very Different'
Cramer said he decided to "dig deeper" into Nvidia and met with Huang. After seeing the projects Huang was working on, Cramer said he realized the CEO was "someone very different" and has a vision 20 years into the future.
Trending: Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
Answering a question from Fortt about market fears over a possible AI bubble, Cramer advised investors to trust the stock market and remain invested. Cramer said investors should avoid investing "aggressively" if they are worried about a bubble.
"Do you believe in the company? If you don’t believe in the company, if you just believed in the trajectory of the stock, then you’re going to get blown out. Better to be blown out now than be blown out later," Cramer said.
Cramer urged investors during the interview to understand what they own rather than simply following popular trends. He believes that having confidence in the story behind a stock helps you stay the course during market volatility.
"If you don’t know what you own, you might just think you own a hot, nuclear stock," Cramer told Fortt. "It may cool for a couple of days, and that could shake you out. What you need to worry about is how badly you’ll be hurt because you didn't understand what you bought in the first place."
Read Next:
- Bill Gates Says Climate Change ‘Needs to Be Solved' — This Award-Winning Building Material Is Tackling It Head-On
- 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Image: Shutterstock
