Jim Cramer Says “Arm’s Always Been Tight With NVIDIA, I Think It Gets Tighter”

Arm Holdings plc (NASDAQ:ARM) is one of Jim Cramer’s latest stock calls as he shared how to navigate Wednesday’s tough tape. Cramer noted the company’s potential in AI, as he said:

I like Arm Holdings, which I think will be the big beneficiary from the pivot to using not just its monster GPU architecture, but also its more agile CPUs to help manage these AI agents. They need CPUs. Arm’s always been tight with NVIDIA. I think it gets tighter.

Stock market data. Photo by Alesia Kozik on Pexels

Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. Cramer highlighted the company’s importance to the semiconductor industry during the March 16 episode, as he stated:

As we celebrate all things AI at NVIDIA’s annual conference, I want to highlight a company that’s become increasingly important to the entire semiconductor industry: Arm Holdings. This semiconductor design company cut its teeth providing CPU designs that maximize energy efficiency, especially for smartphones. That expertise has made Arm the preferred partner for many AI systems, including NVIDIA’s. That said, for some reason, the stock has been stuck in a rut, trading sideways for the past couple of years. Can it get its mojo back? Because I gotta tell you, it’s got the earnings back… The stock is up since the last quarter, but nowhere near reflecting the kind of book of business that Rene has just outlined for the next year and a half.

While we acknowledge the risk and potential of ARM 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 ARM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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