Amazon.com, Inc. (AMZN): Jim Cramer Maintains It Needs To Buy NVIDIA

We recently published 10 Stocks Jim Cramer Discussed As He Asserted He Could Beat The Government’s Numbers. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer recently discussed.

Amazon.com, Inc. (NASDAQ:AMZN) is struggling on the stock market lately as investors are worried about the growth prospects of its cloud computing division. The shares have gained a mere 1.4% over the past month, after they fell by 9.6% after the firm’s second quarter earnings were accompanied by weak AWS growth. Cramer continues to maintain that Amazon.com, Inc. (NASDAQ:AMZN) is struggling because it is focusing on its in-house AI chips instead of NVIDIA’s AI GPUs:

“Think about what happened to Amazon, when they decided to go away from using all the NVIDIA that was possible. . .

“They’re [Amazon’s custom AI chips] are as good, they can do inference, they’re not as good. You have to do training and inference, they’re apparently not as strong. And, you know, you’ve got Meta, you’ve got Grok, you’ve got, jeez, I mean, ChatGPT.

“It’s enough for me, I’ve been defending them endlessly, but I feel like I’ve lost my way defending them because of too many who tell me. Jim, you loved NVIDIA and now suddenly you think that Trainium, their chip is as good as NVIDIA which is not? It’s not. And by the way, on the conference call, they said, listen we’re still very close to NVIDIA. Well if you’re that close, that’s close but no cigar.”

Here are his previous thoughts about Amazon.com, Inc. (NASDAQ:AMZN):

“We’re in the era, this is what happens, The two big overhangs in this market had been Apple waiting for the sword of Damocles and Amazon, trading down because Amazon Web Services is viewed as a share donor. Both of those seem to have been forgotten. David, the forgotten negatives there has been replaced by we’re dumping the big tariffs for now.”

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