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Jim Cramer on NVIDIA: “It’s Really At the Heart of What’s Known as the Fourth Industrial Revolution”

NVIDIA Corporation (NASDAQ:NVDA) is one of Jim Cramer’s latest stock calls as he shared how to navigate Wednesday’s tough tape. Cramer said that the company’s stock is “hard to understand,” as he commented:

Now, I just got back from one of the most remarkable of all places, the showcase for artificial intelligence and accelerated computing in all of its forms, NVIDIA’s GTC conference in San Jose. There, I saw so many different companies capitalizing on NVIDIA’s software and hardware platform, and they’re going to do that regardless of what happens in the Middle East. NVIDIA’s stock is hard to understand… But what keeps people from missing the big gains in the stock is that it’s really at the heart of what’s known as the fourth industrial revolution. That’s where technology overruns the way we do things. Not just companies, but individuals. They can do more with less. They can create all new industries we haven’t even imagined yet. They can generate amazing profits for companies that harness AI, whether it be ChatGPT, Anthropic, or Gemini… They’re a canvas anyone can write on… But most of all, if I didn’t own it, I would buy the stock of  NVIDIA.

I know it can go down, maybe four or five points. It doesn’t mean anything. It’s small. The tech giant’s not hemmed in by Iran. It’s not shredded by stagflation fears. Its lack of upside has more to do with the structure of the market. NVIDIA’s overowned right now. That won’t matter if all the good things I saw at GTC come to fruition, though. Some stocks may be just too cheap to avoid.

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. We recently mentioned the company while discussing the best growth stocks to buy. You can read about it here.

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.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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