Jim Cramer Explains Why NVIDIA Stock Rallied

NVIDIA Corporation (NASDAQ:NVDA) was among the stocks Jim Cramer talked about as he discussed the recent rally in several AI-related stocks. Cramer highlighted the recent COMPUTEX festival and the CEO’s keynote speech, as he stated:

What triggered the newfound optimism in this insanely positive tech session that made me feel like it’s not going to be boom-bust, it was a hugely important keynote speech by NVIDIA Jensen Huang at the COMPUTEX festival in Taiwan… The discussion started with the power of the Vera Rubin, which is NVIDIA’s latest supercomputing architect for the data center, shipping, and scale. Then he pivoted to talk about how their new product, this revolutionary new product, where they’ll have millions ready in the fall, it’s the RTX Spark super chip. That’s an ARM-based product for this PC that works best with the AI agents that Jensen sees proliferating all over the place. This is a CPU combined with a GPU in a single package… Then he talked about how he’s lowering the price of compute drastically so his partners will make more money… Now the personal computers using his ARM-based superchips will become far more powerful and creative than those based on the old architecture. And that’s why NVIDIA stock rallied 6% today, and Microsoft, who they’re working with on this, gained 2%.

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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