Jim Cramer: "Nvidia (NVDA) and Apple (AAPL), Hold Them No Matter What"

▲ Apple (AAPL), Nvidia (NVDA)/AI generated image

Jim Cramer, an American financial broadcast host, named Nvidia (Nvidia, NVDA) and Apple (Apple, AAPL) as stocks that should never be sold, even during a market crash. It is as if he once again declared the principle that one should enjoy the fruits of growth through long-term holding rather than chasing short-term market prices.

According to BeInCrypto, a virtual asset specialized media outlet, on September 28 (local time), Cramer, host of CNBC's Mad Money, named only Nvidia and Apple as stocks recognized as exceptions to his strict sell-off principles. Cramer has emphasized that one should not hesitate to cut losses if a company's investment logic falters, but he has granted the highest level of trust and exceptional status to these two companies.

Cramer maintained his long-standing investment philosophy for the two stocks: "Don't trade, just hold." He explained that if one repeatedly sells and buys to avoid short-term price drops in sound long-term growth stocks, it's easy to miss the subsequent stock price recovery phase. Even amidst controversies such as "Inverse Cramer," an opposing trading strategy adopted by some investors, he cited the two companies' ecosystem expansion capabilities and cash generation abilities as core justifications.

The firm trust in Nvidia is analyzed to have originated from a conversation with Nvidia CEO Jensen Huang in 2022. It is assessed that CEO Huang's presented roadmap for artificial intelligence (AI) semiconductor demand and data center infrastructure transition, even during the stock price crash at the time, has been proven by today's explosive performance growth. Nvidia's business model, which recently surpassed $96.2 billion in Q2 revenue, growing 106% year-over-year, supports the justification for long-term holding.

Apple, too, has established itself as the archetype of a permanent holding stock, based on its unique device ecosystem and stable service segment revenue. Robust cash flow, with its global active device base reaching an all-time high and quarterly revenue surpassing $109.4 billion, is defending against downside stock price movements. Cramer warned that hastily disposing of leading companies with excellent competitiveness during temporary performance slowdowns or stock price correction phases could lead to greater losses.

However, Cramer added a caveat that there are no eternal stocks in the market, and both companies must continuously prove their corporate value. Investors are focusing on whether Nvidia and Apple, vying for the world's number one market capitalization, can firmly maintain their market-leading positions amidst the AI transition and technological hegemony competition.

[Article Key Summary]

-Jim Cramer named Nvidia (NVDA) and Apple (AAPL) as stocks recognized as exceptions to his strict sell-off principles.

-He diagnosed that holding sound growth stocks long-term, rather than frequent trading, is the way to fully enjoy stock price recovery after a correction.

-While citing the two companies' strong ecosystems and performance growth as reasons for trust, he also pointed out that the responsibility to prove their value always exists.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*