CNBC’s Jim Cramer on Wednesday explained to investors how Nvidia can sometimes boost other stocks when it soars.
“Take a look at today’s biggest gainers,” he said. “They’re just spinning pins, scattered this way and that because Nvidia speed ball went right down the middle.”
Nvidia led the pack on Wednesday as the S&P 500 and the Nasdaq Composite reached new highs. The artificial intelligence powerhouse jumped to $3 trillion in market capitalization for the first time during intraday trading, passing Apple to briefly become the second-largest company on the market. Nvidia’s shares are up more than 3,000% over the past five years.
The “roadmap” for Nvidia chips is only going to get more powerful, he continued, highlighting corporations that aligned themselves with the company and saw their stocks climb on Wednesday, like CrowdStrike and ServiceNow. He added that companies involved in every aspect of building data centers saw gains, from energy outfits to semiconductor manufacturers. Cramer also pointed out Hewlett Packard‘s positive earnings report on Wednesday, noting that the PC maker mentioned Nvidia several times on its conference call.
“I know that Nvidia’s stock accounts for one-third of the S&P 500’s rally this year, so it’s easy to say it has outsized influence,” Cramer said. “But as a formerly decent bowler before I hurt my elbow, I’ll tell you that I’ve never seen, ever seen anything like this. Every time Nvidia hits the head pin, it’s strike after strike after strike.”
Nvidia declined to comment.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia and Apple.
