Jim Cramer Responds to Investor With 60% of Portfolio in NVIDIA
Jim Cramer Responds to Investor With 60% of Portfolio in NVIDIA
Thomas Richmond Sat, July 25, 2026 at 10:45 PM UTC
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Tulane Public Relations/Wikimedia CommonsQuick Read -
Cramer backed GEV as a diversification play for an investor whose NVDA position had ballooned to 60% of his portfolio.
GE Vernova booked $2.4 billion in data center electrification orders in Q1 2026 alone, surpassing its entire 2025 total.
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On the May 29, 2026 episode of Mad Money, a caller named Patrick from Virginia brought Jim Cramer a problem most investors would love to have. He bought NVIDIA (NASDAQ:NVDA) back in 2017 when Cramer called it "the stock of our generation," and over the next eight years, the position grew to roughly 60% of his individual stock portfolio. Patrick has spent the past year actively trimming that holding and asked Cramer whether GE Vernova (NYSE:GEV) made sense as a diversification target.
Cramer's answer doubled as both a green light on the new pick and a defense of the original thesis: "I still like NVIDIA very much. I'm not backing away from NVIDIA."
The 60% Problem
A single stock growing into majority control of a portfolio is the kind of outcome long-term investors fantasize about, and few know how to manage. Selling can be difficult because of taxes, conviction in the business, or simply the emotional attachment that builds after years of owning a major winner.
Patrick's approach stood out because he spent a full year trimming the position in stages. That discipline allowed him to reduce concentration risk without abandoning a stock that helped build his wealth in the first place.
Cramer's Take on NVIDIA
NVIDIA remains one of the market's defining winners. The stock closed at roughly $207 on July 21, 2026, giving the company a market capitalization of approximately $5.0 trillion. Its 52-week range spans $164 to $237, reflecting both the turbulence and the relentless upward momentum that have defined the AI era.
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The business continues to produce results that support the bullish narrative. In Q1 FY2027, NVIDIA reported $81.6 billion in revenue, up 85% year over year, while Data Center revenue surged 92% to $75.2 billion. Non-GAAP diluted EPS came in at $1.87, well ahead of the consensus estimate of $1.77. Management also authorized an additional $80 billion in share repurchases and raised the quarterly dividend 25-fold.
CEO Jensen Huang captured the tone on the earnings call: "This was an extraordinary quarter. Demand has gone parabolic." The AI boom that attracted investors years ago has only accelerated, and NVIDIA's results keep reflecting that.
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Why Cramer Likes GE Vernova
Cramer also expressed enthusiasm for Patrick's diversification target. "I think GE Vernova is absolutely terrific. We know that it's come down nicely from its top. It's at a very good level." GE Vernova hit an all-time high of $1,195.94 on July 6, 2026, before pulling back to the $1,070 to $1,090 range. Even with that retreat, the stock has gained roughly 84% over the past year, and the company heads into its Q2 2026 earnings report on July 22 with analysts projecting year-over-year EPS growth of approximately 70%.
The company sits on the other side of the AI buildout. While NVIDIA supplies the chips powering AI systems, GE Vernova provides much of the electrical infrastructure needed to run them. Data centers require enormous amounts of power, and demand for generation, transmission, and grid equipment has become one of the biggest secondary beneficiaries of the AI boom.
During Q1 2026, GE Vernova booked $2.4 billion of data center-related electrification equipment orders, surpassing the total recorded across all of 2025. Total orders climbed 71% organically to $18.3 billion, and management raised full-year free cash flow guidance to a range of $6.5 billion to $7.5 billion. The company's gas power backlog also expanded to roughly 100 gigawatts during the quarter, up from 83 gigawatts at the end of 2025.
GE Vernova would allow Patrick to reduce his concentrated NVIDIA position while maintaining exposure to the same long-term AI infrastructure theme.
A Market Looking for New Leaders
Cramer ended the discussion with a broader observation about the market: "This market needs a few more catalysts to broaden it out besides the data center. Maybe we'll get that in June. Got to hope so, because you can't just keep trading the same stocks."
A relatively small group of AI-related companies has driven a large portion of market gains and earnings growth expectations in recent years. For investors sitting on oversized winners, that reality means position sizing deserves as much attention as stock selection.
Editor's note: This article updates NVIDIA's stock price and market capitalization to July 21, 2026 levels, corrects Data Center revenue to $75.2 billion (from the initial $75.25 billion), refreshes GE Vernova's one-year gain to approximately 84%, and adds context on GE Vernova's all-time high of $1,195.94 reached on July 6, 2026, its Q2 2026 earnings report due July 22, and its gas power backlog expansion to roughly 100 gigawatts.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
