We recently published Jim Cramer Said AI Is A “Souped-Up Google” As He Discussed These 11 Stocks. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.
NVIDIA Corporation (NASDAQ:NVDA)’s earnings report saw the shares fall by as much as 4% in aftermarket trading. Cramer discussed the stock in detail the day before its earnings and shared a key metric that had to be addressed during the earnings call for the firm’s long-term success:
“Okay, so, we actually had the CEO of MongoDB on this morning, talking about the overspending. Are the hyperscalers overspending? Does it really matter? . . .Talked about hallucination and the problems there. I come back and say, the answer to everything, come to this company. You cannot have generative AI, the way you’d like to, without NVIDIA. So you’re going to have, what some people say, overspend, but, its the table stakes, it’s the price to be in the business. David, there are a lot of people who feel this will come up tonight, that the total cost of ownership in NVIDIA has gotten too high and you can’t make money with it.
“[When asked what he meant by total cost of ownership] Cause if you buy the stuff and then you have it inserted by Dell, and you try to train on it and you have the inference, it turns out that you lose money.
“Okay so the rap is, NVIDIA makes all the money and nobody else does. And that’s what has to be addressed tonight. Not China. I mean everyone’s going to say China, it’s like, yes, okay so you’re a parrot. . well that’s those people. Well, I mean, no kidding, China. What matters is that we hear from Jensen Huang about that whole narrative, that the spend isn’t getting them any results, is false.
“I’m not going to disagree with that, but I think Jensen might be able to say, look, the return here is monstrous, you just have to be able to bear with it.
“[On talks about not being able to replace with AI what was happening with key software providers] Look, I think that’s a really important narrative, but I think what’s more important and why this conference call is valuable, is because if that’s the case, what’s the demand? I mean the demand, some people say it might be as high as ten to one. . .but I do think that there is a case to be made that this is by far the most important stock in the market.
“For the longest time in the world software is what mattered. Before that by the way, it was, just so you know, oil. . .but it was these, it finally became semiconductors. And for the longest time until Lip-Bu was the only person, Lip-Bu Tan, the now loved from the White House, was saying listen, one day, semiconductors are going to rule the world again. Not unlike dinosaurs. And what happened is, it happened. Because of NVIDIA.
“I’m just saying, the zeitgeist in this country had always been enterprise software, that’s how you made all your money. Right. Software. . .you have this one country, but you do not have the other semis. . .but it’s just this one semi, but semiconductors have reasserted what maybe from the days when Intel, when the Texas Instruments. . .
“People at home are trying to figure out why we are so possessed with NVIDIA? If it looks like that no one’s getting any return from NVIDIA, if it looks like that they had to go to the President to get China. And the reason is we are either going to make a lot of money with AI, right, or Dev, Dev Ittycheria, from MongoDB, says listen no one’s going to make any money. Which means the only company that’s going to make money is NVIDIA. Which means in the end you’re going to hear someone break ranks. That’s what everyone is scared about.”
“I think you have to. But frankly I don’t trust anything from China. Look DeepSeek got people out. 50% ago and that was a disaster. I’m trying to keep people in. And I try to keep people in and why I wore by the way just so you know, my NVIDIA cufflinks today? Because I want people to be in. Remember 2017. Where were the other guys? When I was naming my dog NVIDIA, where was the other guys? Now they’re all in the party. At 4.4 trillion.”
While we acknowledge 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% 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.
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