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Stock Market Today With Jim Cramer: More Videogames Mean Buy Nvidia

Jim Cramer discusses Nvidia's earnings and Robinhood's outlook for the next quarter.

Stocks traded mostly higher Thursday and tech shares led the gains as investors bought equities following two days of declines

Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks talked about Nvidia's earnings and Robinhood's weak outlook for the next quarter.

Nvidia: Buy Or Sell?

Shares of Nvidia  (NVDA) - Get Free Report were rising Thursday after the graphics-chip maker benefited from continued hot demand for devices from computer videogamers and cryptocurrency miners, pushing its sales and profit to records.

Nvidia also issued an upbeat forecast for the fiscal third quarter even as the market for chip supplies remains tight.

Cramer said the more videogames are created, the more investors want to own Nvidia stock. "It was a remarkable quarter in a series of remarkable quarters and people, if they listen, will recognize why you pay such a high multiple for such great companies," he said.

Robinhood: Buy Or Sell?

Shares of Robinhood Markets  (HOOD) - Get Free Report fell under pressure Thursday after the brokerage firm said it expected weaker third-quarter revenue from lower trading activity.

The company posted a loss of $502 million, or $2.16 a share, in its first earnings report as a public company. 

Cramer said he doesn't want to see "seasonal" headwinds when "dealing with brand new companies." That's something he saves for when dealing with 'old hag" companies.

"As someone who was in charge, at one point, of looking at what seasons were strong and weak at Goldman Sachs, the September season is supposed to be a strong period. 

"Maybe they [Robinhood] think it's a weak season as so many of their subscribers are students, but with mobile phones in those classrooms, you can do what you want. The fact is that you're supposed to be at the beach in the summer and then back wham jam and trading in September," he added.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Jim Cramer adds or removes stocks from the portfolio? Learn more now.