Jim Cramer Believes "Anyone Who Refuses to Buy NVIDIA's Chips Will Be Left Behind"

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently shed light on. Cramer was bullish on the company even though he highlighted the criticism toward it. He said:

“Now let’s deal with NVIDIA and its earnings report this Wednesday. Are there some concerns? Sure, there’s China demand, which the usual trash cyber rags, it’s amazing, there are trash cyber rags like there used to be, like yellow journalism, they got them. They tell us the demand is waning. Do you know when they’re going to start shipping the new chips? I don’t know, maybe there’s no demand for them. And most important of all, when do the big spending hyperscalers lose their appetite for these expensive chips? Soon, right? Soon, soon, soon. It can’t keep going on without a payoff, right? And then NVIDIA will no longer be king of the hill, top of the heap…

To which I say, we live in a biased world. We’ve loved enterprise software and disdained semiconductor stocks for decades. We like the evergreen nature of enterprise software, disdain the episodic nature of semis… But now, just as software ate hardware, now AI is eating software. As Cramer pal Ben Reitzes put it over Melius, that’s a research firm, hardware is to the future as software used to be to the future. You can’t have generative AI without NVIDIA because we haven’t seen generative AI yet that is all that different from a souped-up Google…

More important, the new NVIDIA chips will allow the chatbots to reason; they’ll actually be able to argue with you to get a better answer. Do you really think AI spending is headed lower, not higher when NVIDIA has chips that will allow you to ask your system questions, and it comes back with questions to you to get the answer right? Reasoning will be the holy grail of this whole AI generation. Okay, that’s it. And people are selling these stocks ahead of that change. That’s downright unreasonable. I think anyone who refuses to buy NVIDIA’s chips will be left behind in the great hyperscaler arms race.”

NVIDIA Corporation (NASDAQ:NVDA) develops computing infrastructure products focused on graphics, networking, and AI solutions. The company’s solutions are applied across gaming, cloud infrastructure, robotics, autonomous platforms, and enterprise artificial intelligence.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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