Jim Cramer Says “You Better Believe NVIDIA (NVDA)’s Getting a Big Cut” of the AI CapEx By Mega-Cap Tech

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer looked at recently. Cramer highlighted one of the company’s growth catalysts, as he said:

That leaves us with NVIDIA, which hasn’t reported yet, but when you see all these mega-cap tech companies budgeting insane amounts of money for capital expenditures, you know a lot of that’s going to NVIDIA. Sure, some of it will go to Broadcom and Marvell Tech, but you better believe NVIDIA’s getting a big cut of it. Maybe that’s why the stock’s soared nearly 8% today, its best session since April of last year, and many had just begun to give up on it.

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. Cramer discussed the stock during the February 2 episode and commented:

There’s nothing magnificent about them. There’s nothing even special. My trust owns a bunch of these, I’m very conscious of this, six of the seven. And we respect them. We know that they can take off. Some are just resting. I think NVIDIA’s taking a breather, which is usually what you see before it makes a gigantic move. The darn stock now trades at just 24 times earnings. I call it a coiled spring. Still up over 55% from the past year, well in excess of the S&P 500. I think you need to buy some here, maybe tomorrow. I don’t know if you don’t own it already. NVIDIA’s still magnificent to me. It does, the stock acts terribly. I know that.

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