NVIDIA Corporation (NASDAQ:NVDA) is one of Jim Cramer’s latest stock calls as he discussed the bullish AI investment thesis amid the Iran conflict. Cramer highlighted the company CEO’s keynote speech at the company’s GTC event, as he remarked:
Let’s call it a quasi off switch… a pause button that shocked the pessimists and just created a huge wave of stock buying. And what did they buy?… They bought everything in the room. See, what you see behind me is the wide world of NVIDIA. This is GTC, the AI festival of everything that drives the tech world… They bought the whole wide world of Jensen Huang and everything in it. We went to listen to the keynote speech that Jensen Huang gives every year. He told the tale of endless demand.
You know, this man previously forecasted… in Washington, maybe four months ago, that he had a half a trillion dollars worth of demand for his newer AI chips through the end of next year. Well, that was pretty exciting. And now he’s talking, well, wait a second, he just doubled it. He said there’s an even trillion dollars worth of business by the end of 2027. Yeah, he has a trillion-dollar book of business. NVIDIA’s stock shot up huge when that number came out… Then it gave it up… Getting a little sick of this, frankly, sellers emerge… I believe there will be a delayed reaction. The stock will go higher when analysts digest things because you know what? When you go from a half a trillion to a trillion dollars in sales, it does matter. Jensen told more than just a story of elevated demand. He also announced he had new chips for clients who want more inference-oriented semiconductors at a lower price. One of the reasons why NVIDIA seems stuck, just stuck at $183, epoxied, if anything, is that many of its customers seem determined to make their own chips. I heard a confident Jensen talk about the chips he’s making from a new acquisition, Groq, that are faster, better, and cheaper than anything else out there, including all these chips that these customers are trying to make. There’s no reason for his GPU customers to make their own inference chips if they can buy them for a lower price from Jensen’s NVIDIA.
Again, people yawned, but they won’t yawn when analysts put pen to paper, trust me. On day one, as I strolled the floor here, I saw all the companies that are in the world of NVIDIA, and I realized something. I can’t name a company that isn’t in Jensen’s world… except perhaps this one real competitor, AMD. Can you imagine a world where everyone’s your client? Everyone, because everyone needs computing. I’d say that’s pretty darn extraordinary. Maybe that’s why I think this stock deserves the appellation of being the biggest.
Photo by Christian Wiediger on Unsplash
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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