Jim Cramer Says “NVIDIA (NVDA) Could Cede Its Crown to China”

We recently published a list of Jim Cramer’s Thoughts on These 10 Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discusses.

Jim Cramer Says “NVIDIA (NVDA) Could Cede Its Crown to China”

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA) was mentioned during the episode, and here’s what Cramer had to say:

“Currently, NVIDIA makes the most sophisticated chips in the world, and until a few years ago, it had 95% of the Chinese market, giving potential Chinese rivals zero room to compete. Now that was a pretty great situation, but our nation’s interests in China have totally diverged under Trump… Last night, after NVIDIA reported one of the best quarters I’ve ever seen, CEO Jensen Huang made a plea on this show to keep doing business with China, both to maintain U.S. semiconductor supremacy and to keep the profits flowing…

He said that we act like China can’t build the highest-end chips themselves when we know they’re doing so, including DeepSeek’s new semis that were just announced. If we sell our chips to China, he says we can regain our supremacy, but if NVIDIA can’t do that business, it’s effectively a huge subsidy for the Chinese chip makers. Hmm, look, I’m a hardliner on China, but I see the point… NVIDIA could cede its crown to China very quickly if it isn’t allowed to sell a lot of chips there, returning a lot of the profits from that $50 billion in sales to the U.S. to build more capacity here. I just don’t know if President Trump cares because from his latest actions, it feels like we’re just a few years away from a total shutdown in relations with China…

Fortunately, there’s still a ton of opportunity for NVIDIA outside of China because its chips are that great. To me, though, the president’s in no mood for any of our companies to do more business in China than they have to. I think that’s a mistake when it comes to semiconductors, but right now, I fear that’s exactly what’s going to happen.”

NVIDIA (NASDAQ:NVDA) creates high-performance computing tools and software used in graphics, artificial intelligence, and networking. The company’s technology is used in areas like gaming, data centers, self-driving cars, robotics, and business AI systems.

Overall, NVDA ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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