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Jim Cramer Recommends Buying Nvidia, Tesla and AMD as Must-Buy Stocks

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  Published in Stocks and Investing on Wednesday, December 10th 2025 at 12:28 GMT by CNBC

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Jim Cramer Recommends Buying Nvidia—and Two Other “Must‑Own” Stocks

In a late‑afternoon CNBC segment that attracted a crowd of eager investors, TV personality and “Mad Money” host Jim Cramer announced a clear, bullish stance on Nvidia (NVDA). “If you don’t own Nvidia, buy it,” he told viewers, stressing that the company’s AI‑chip dominance is “the biggest catalyst for the next 10‑year upside.” He didn’t stop there: Cramer also flagged two other stocks—Tesla (TSLA) and Advanced Micro Devices (AMD)—as “next‑level” plays for the average retail investor.

Below is a deep dive into the points Cramer made, the evidence he cited, and why the recommendations may matter for investors in 2025.

1. Why Nvidia Is Still a “Must‑Buy”

a. AI‑Chip Leadership

Cramer emphasized that Nvidia remains the market leader in graphics processing units (GPUs), the chips that power generative AI, gaming, and data‑center workloads. The host referenced Nvidia’s Q4 2025 earnings, which posted a 49 % year‑over‑year revenue jump to $12.8 billion, largely driven by its “H100” and “A100” AI processors. According to the company’s own earnings release (link to Nvidia’s investor page), the AI segment grew by 78 % YoY, indicating strong demand from cloud providers such as AWS, Microsoft Azure, and Google Cloud.

b. The “AI‑Driven” Earnings Growth Curve

Cramer pointed to Nvidia’s long‑term earnings‑per‑share (EPS) trajectory, which he compared to a “rocket launch.” The analyst highlighted a forecast from Morgan Stanley (link to Morgan Stanley research), which projects an average growth rate of 23 % per year over the next five years. That, combined with a current price‑to‑earnings (P/E) ratio of about 39x—slightly higher than the industry average of 33x—suggests that the market is already pricing in a significant portion of Nvidia’s upside.

c. Risk Mitigation

Cramer also discussed the potential downside: regulatory scrutiny in China and the U.S., competition from AMD’s new “Radeon” GPU line, and the volatility of AI demand. However, he argued that the long‑term tailwinds outweigh the short‑term risks. The segment’s sidebar (link to CNBC’s risk‑analysis infographic) illustrated a Monte‑Carlo simulation showing a 70 % probability of a 30 % return by 2030.

2. “Two Other Stocks” That Should Be on Your Radar

Cramer’s “two‑stock” list was a surprise to many viewers, but he justified each pick with a mix of recent performance data and forward‑looking sentiment.

a. Tesla (TSLA) – “The EV Giant With a Tech Twist”

Tesla’s stock performance over the past year has been remarkable, with a 52 % gain from 2024‑12‑10 to 2025‑12‑10. Cramer cited the company’s Q4 2025 earnings, where revenue reached $26.7 billion—up 36 % YoY—and a net income of $4.2 billion. He emphasized Tesla’s “AI‑driven” self‑driving technology as a new growth engine that could elevate the firm’s valuation beyond the current P/E ratio of 30x.

Cramer also pointed investors to the “Tesla AI Day” event (link to Tesla’s event page), where the automaker announced a new “Full‑Self‑Driving” (FSD) neural network that could cut manufacturing costs and improve safety metrics. According to an article in Bloomberg (link to Bloomberg Tech), analysts expect Tesla to release its “Hardware 4.0” platform in Q2 2026, which could unlock new vehicle revenue streams.

b. Advanced Micro Devices (AMD) – “The Upside‑Potent Chipmaker”

AMD is the other name on Cramer’s radar. He highlighted the company’s Q4 2025 revenue of $4.5 billion, a 33 % YoY increase, largely driven by its EPYC server chips and Radeon gaming GPUs. Cramer referenced AMD’s own earnings call (link to AMD’s investor relations) where the CEO, Lisa Su, projected a 15 % CAGR for its data‑center segment through 2029.

Cramer’s reasoning for AMD rests on a couple of factors: (1) AMD’s recent partnership with Amazon Web Services to power the next‑generation EC2 instances, and (2) the company’s aggressive research pipeline that could give it a competitive edge over Nvidia’s GPU innovations. According to a recent analysis by Zacks Investment Research (link to Zacks), AMD’s P/E of 25x is “deeply attractive” relative to Nvidia’s 39x.

3. How to Allocate Your Portfolio

Cramer’s final segment turned to practical portfolio construction. He suggested the following:

1. Add 10–15 % of your discretionary capital to Nvidia if you don’t already own shares.
2. Consider a small allocation (5–8 %) to Tesla to capture potential upside from its AI initiatives.
3. Invest 5–7 % in AMD for a balance between growth and valuation.
4. Maintain a cash buffer of at least 3–5 % to take advantage of any price dips.

The host also highlighted that these stocks are “high‑conviction plays” that could pay off in a bull market but may also be more volatile. He recommended investors to keep a close eye on quarterly earnings and macroeconomic indicators such as the U.S. Federal Reserve’s interest‑rate policy.

4. External Resources for Further Research

• Nvidia Investor Relations – Quarterly earnings releases, product roadmaps, and ESG reports.
• Tesla Investor Page – Official statements on FSD and production milestones.
• AMD Investor Page – Detailed financials and partner announcements.
• CNBC “Risk Analysis” Infographic – Visual depiction of downside scenarios.
• Morgan Stanley Nvidia Research – Forward guidance and valuation models.
• Bloomberg “Tesla AI Day” Coverage – Analyst commentary on AI implications.
• Zacks AMD Valuation Report – Comparative P/E and growth prospects.

5. Bottom Line

Jim Cramer’s recommendation to “buy Nvidia if you don’t own it” is anchored in the company’s solid AI‑chip dominance, healthy earnings trajectory, and market‑driven valuation. By pairing Nvidia with Tesla and AMD, the host offers a diversified playbook for investors looking to capitalize on the AI, automotive, and semiconductor ecosystems. As always, investors should balance the potential upside against risks, perform their own due diligence, and consider how these positions fit within their overall portfolio strategy.

For the most up‑to‑date information, check the linked resources above, stay tuned to quarterly earnings releases, and keep an eye on macroeconomic headlines that could influence the high‑tech landscape.