Jim Cramer Believes "NVIDIA is Making a Very Smart Investment in OpenAI"

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer shed light on. Cramer discussed the company’s recent deal with OpenAI. He remarked:

“It wasn’t until Oracle’s announcement of nearly $500 billion in orders that I myself started to worry. We quickly learned that a significant portion of those orders came from OpenAI, and I don’t know how OpenAI can raise the money it needs without taking on huge amounts of debt. Although this week, NVIDIA committed to investing a hundred billion dollars in their expansion over time, but not upfront. I heard critics say this deal is what’s known as circular vendor finance, meaning a supplier giving a customer money to buy product.

I look at it very differently. I think NVIDIA is making a very smart investment in OpenAI, which could end up being worth a trillion dollars when it comes public, maybe more. It could give NVIDIA a monster return. The deal makes sense for both sides, which is really what matters.”

NVIDIA Corporation (NASDAQ:NVDA) develops GPUs, AI platforms, data center solutions, and networking technologies for industries spanning gaming, visualization, and automotive.

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.