We recently published Jim Cramer Talked About These 14 Stocks & Discussed AI And Layoffs. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.
After NVIDIA Corporation (NASDAQ:NVDA)’s GTC Conference in Washington, Cramer had a lot to say about the firm. He discussed the firm’s earnings multiple, CEO Huang’s comments about a $500 billion revenue opportunity, and China approvals:
“[As shares rose after Huang’s GTC conference and approached $5 trillion and Carl commented on BofA’s report of consensus shifting from 80 cents when ChatGPT emerged to now being ten bucks] Yeah I mean that’s what happens when you have a stock that looks like a very high price to earnings multiple but isn’t. You do have to have a suspension of belief because this man has pulled off something rather [inaudible]. If you look at all the companies that were speaking at GTC, you’ll see that he’s integral to every single industry. I wanna be sure, the number that he actually gave, the 500 billion in orders, that actually may be a bit of a, a bit of an overstatement of what he might have meant to say. Because I think that you are looking for something that’s more, about a 100 billion dollars lower. It’s not hyperbole but I think that I just want to walk it back a little, David, because you know, if you look at Ben Reitzes’ piece from Mellius, you will see that piece right there. . .that’s a good piece in terms of what the real number is.
“Some people think that we are splitting hairs, but we are talking about a 100 billion dollars. It did add yesterday the equivalent of a Mastercard. . .and I just think it’s important to keep the perspective that this is just a juggernaut. I mean a lot of it is that they have a new chip, new platform, I don’t like to use the term chip, that the Rubin, that people like. Remember they are the way that Pentium used to be, they have the Richard Feynman all set. So one of the things that Jensen explained, Jensen Huang the CEO explained to me is, what you do is you want to think where you want to be and then you walk back. That’s how he does his iterations. You know I’m completely enamored of the product line of Lisa Su. But Jensen is ahead when it comes to load, with software. And David, inference, I guess it’s just not whatever compute you can use.
“The narrative shifted in the middle of the night from one saying, what a great day at GTC, to three points additional when the President said, Blackwells will be discussed. . .I’m wondering whether Jensen Huang, hasn’t at last, with David Sacks, convinced the President that it is better for the Chinese to write on our programs than on Huawei. That has been Sacks’ approach. Now obviously Navarro has felt that is a very globalist view. And globalists were out for a while. But if Jensen has convinced them, then David it is a 50 billion dollar market. Quickly he would always say look it’s not in our numbers. But what’s happened is that people are betting that it will be in the numbers. Be prepared for some disappointment.
“It’s tough to move the needle for a five trillion company [with 5 billion of additional of revenue expected]. . .I once doubted Jensen. He said it could be ten billion. . .he said it could be ten trillion. I said I’m trying to get my head around two trillion. He said what does it matter? What does it matter, the size of our company? What matters is what we’re accomplishing. . .you’re trying to contain it in the four walls of a spreadsheet or by our little lilliputian minds and we can’t. . .Jensen is trying to get it so that you have an inexpensive robot in your house doing all the things that you don’t want to do.”
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Disclosure: None. This article is originally published at Insider Monkey.
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