Jim Cramer Highlights One of the Major Reasons for Sticking With NVIDIA Stock

NVIDIA Corporation (NASDAQ:NVDA) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer highlighted the company CEO’s strategy, as he commented:

… Neoclouds, these are outfits with only one priority: Get the AI factory online and make the GPUs usable. They exist to deliver reliable compute faster than the competition. Honestly, this whole edifice exists because of NVIDIA, one of the major reasons why I stick with the stock. They’ve been major backers of the big neoclouds because they want to stave off a long-term competitive threat from the hyperscalers themselves. Google, Amazon, Microsoft- those have all developed their own chips to compete with NVIDIA.

They all want to reduce their dependence on Jensen Huang’s chips. And Jensen naturally doesn’t want a world where all AI compute is controlled by three cloud giants that are actively trying to build their own custom chips. That’s why NVIDIA’s helped create this new customer class, investing in the likes of CoreWeave and Nebius. Jensen wants an ecosystem that runs through NVIDIA, and that’s why he helped this entire industry develop.

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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