Jim Cramer recently discussed Apple Inc. (NASDAQ: AAPL) and NVIDIA, showing optimism around their stocks. He remarked that both companies are performing well and making significant profits.
"We've seen breathtaking rallies in the data storage stocks. We also have some stocks that simply can't lift, and I gotta mention them, Apple and NVIDIA," Cramer said. "I know you want to know if it's over for these two members of the Magnificent Seven. I come at it a totally different way. I think both Apple and NVIDIA, the companies, are humming along, making a lot of money."
He explained that money managers often sell existing holdings to buy new ones at the start of the year, making stocks like Apple and NVIDIA sources of funds. "It's simply that money managers need to sell something old if they want to buy something new, so their stocks become what is known as a source of funds," Cramer noted. "Do you know it's a time-honored tradition at the beginning of the year? I've seen it happen in January repeatedly over the years."
Cramer advised investors to wait out the selling pressure. "You just have to wait these two out. You'll know when the selling is done. It's truly not over yet, or the stocks wouldn't start rolling over every day from the get-go. And you see it as well as I do," he stated.
He recommended holding the stocks rather than trading them. "I say, own Apple and own NVIDIA, don't trade them. Nothing's changed for me," Cramer added. When asked if they were in a difficult position, he responded, "Are they [the house of pain]? Nah, wrong address."
Apple Inc. manufactures and sells devices including the iPhone, Mac, iPad, wearables, and accessories. These products are supported by the company's app ecosystem, AppleCare, and cloud services.