NVIDIA Corporation (NASDAQ:NVDA) is a stock that Jim Cramer continues to stand by with, even though it has struggled. While it’s unclear whether he’s as loyal to it as he is to Costco, throughout 2026, the CNBC TV host has continued to assert that the firm provides a great long-term opportunity. NVIDIA Corporation (NASDAQ:NVDA)’s shares are up by 17.5% year-to-date, fueled primarily by a 16.8% jump since July 29th. In a brief couple of tweets, Cramer first commented on t/he shares and then on Elon Musk’s announcement that he would exclusively buy the firm’s AI products:
“you get a couple of reports that Nvidia chips are holding their value and are scarce and the stock soars.
“If Elon hadn’t gone all in Nvidia with what could be the biggest set of orders in the history of Nvidia then AMD’s stock would have been up last night. The loss of that business overshadowed ANOTHER MONSTER quarter from Lisa Su. Listen: @SquawkStreet this a.m.
“You have to spend to make
Due to the centrality of its products for the AI ecosystem, the debate for NVIDIA Corporation (NASDAQ:NVDA) is about AI spending. The bulls and the bears are torn between whether the spending will be sustainable or whether hyperscalers will reduce their budgets. Cramer’s initial tweet also discusses this and addresses another key point about the resale value of the pricey AI GPUs.
For the NVIDIA Corporation (NASDAQ:NVDA) bulls, the revenue growth rate, which was 85% in the first quarter, means that its valuation, such as a forward price-to-earnings (P/E) multiple of 22.88, is too low. Additionally, they point to the firm’s future potential by quoting NVIDIA Corporation (NASDAQ:NVDA)’s backlogs and bookings for the current Blackwell systems and the next-generation Vera Rubin AI GPUs. The firm is estimated to have a $500 billion chip backlog, while CEO Jensen Huang, as optimistic as ever, has projected $1 trillion in sales for the Blackwell and Rubin GPUs through 2027.
However, the bears caution that potential tailwinds stemming from custom AI chips, circular deals and margin pressures could spell trouble in the future. According to the bears, deals such as those where NVIDIA Corporation (NASDAQ:NVDA) guarantees backstops for customers that buy it products can cause demand to appear inflated than it actually is. They also point towards high HBM memory chip costs to warn that NVIDIA Corporation (NASDAQ:NVDA) could experience margin erasure.
As for Advanced Micro Devices, Inc. (NASDAQ:AMD), the debate for the firm is similar to the one that was present when Intel was the dominant player in the global chip industry. The bulls and the bears are divided on whether Advanced Micro Devices, Inc. (NASDAQ:AMD) can become a genuine alternative or competitor to NVIDIA’s advanced AI GPUs. The bulls are optimistic about the growing use of agentic AI due to its positive impact on CPU demand. While Advanced Micro Devices, Inc. (NASDAQ:AMD) makes CPUs and GPUs, NVIDIA is limited to GPUs and CPUs designed through Arm-based designs. However, the bears point towards other factors, such as $808 million in capital expenditure in the second quarter, which was significantly higher than analyst estimates of $299 million. Additionally, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s forward P/E ratio of 66 is quite high and leads to debate about whether it can lead to headwinds in case of even the slightest weakness in financial performance.
The hedge funds clearly favor NVIDIA Corporation (NASDAQ:NVDA), though. During Q4 2025, 264 out of the 1,041 funds part of Insider Monkey’s database had owned a stake, while this figure was 275 out of 1,022 in Q1 2026. On the other hand, 132 and 134 funds had owned AMD in Q4 and Q1, respectively, to indicate a more muted sentiment. Short interest as a percent of the float was 1.39% for NVIDIA Corporation (NASDAQ:NVDA), while it was 2.45% for AMD. Both firms were part of our list of 10 Blue Chip Stocks Jim Cramer is Crazy About.
While Insider Monkey acknowledges 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 have limited downside risk. If you are looking for an AI stock that is more promising than NVDA that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
