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Jim Cramer on NVIDIA: “Just Resting Before it Reasserts Itself”

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer was focused on. Cramer discussed the company’s earnings and the following market reaction during the episode, as he said:

“The looming NVIDIA quarter dominated the market’s mindshare in a very negative way. So when NVIDIA actually reported after the close, it’s kind of an anticlimax. The company reported a healthy top and bottom line beat with robust guidance for the current quarter, that’s including any new Chinese business now that they can sell decent chips there. But NVIDIA’s all-important data center sales came in a tiny bit light, surprising, and frankly fitting the negative rap that we’ve been hearing. So the stock got dinged in after-hours trading. I think that’s mostly because it was up 35% for the year going into the quarter, and expectations were indeed sky high. But that’s the Charitable explanation… All in all, though, in reality, it’s a good quarter…

I want to explain why, even after this poorly received NVIDIA quarter, I think AI’s worth every penny… Now I’m hearing that what we call the hyperscalers, the companies spending fortunes on NVIDIA, you know, the ones that are writing the checks to NVIDIA, are part of the AI bubble… People are wondering whether the money being spent on NVIDIA is finally peaking and petering out. Now, I want to stipulate some things. First… the hyperscalers are run by the smartest people on Earth. Second, they have the better balance sheets than any country in the world…

Is NVIDIA fooling everyone? Is Jensen Huang fooling everyone? Are the valuations all way too big there? Listen, we heard the same thing about the dot-com survivors at the turn of the millennium… If you give up on NVIDIA now, I think you could miss a boat that’s not sinking, just resting before it reasserts itself. So I say own it, don’t trade it.”

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NVIDIA Corporation (NASDAQ:NVDA) develops advanced computing, graphics, and AI platforms that provide solutions for gaming, data centers, enterprise AI, robotics, automotive technologies, and cloud services.

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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