Jim Cramer on NVIDIA's CEO: "Why the Heck Wouldn't I Believe Him"

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer put under the spotlight. Cramer highlighted that the company’s CEO is an “excellent investor.” He said:

“Last month, Jensen Huang won a very similar deal with OpenAI; this time, a 10-gigawatt deal… Unlike AMD with its grant of warrants to OpenAI, NVIDIA actually is going to be investing a hundred billion in OpenAI in stages over the life of the deal. If you haven’t studied Jensen’s moves, you might not know that he’s an excellent investor. He does all the work himself… He animated that rather than this being a circular, lazy Susan deal as the billionaires described and the hedge fund shorts described, it’s simply a great investment in an up and coming company.

He pointed out that there can be no circular deal if there’s no quid pro quo. No matter, I hear it from people… who are outraged that… I believe Jensen when he said that the deal wasn’t exclusive. This guy has created $4 trillion of market capitalization in less than five years. Why the heck wouldn’t I believe him?”

NVIDIA Corporation (NASDAQ:NVDA) develops advanced computing, graphics, and AI technologies spanning data centers, gaming, and automotive systems. The company’s products power applications in artificial intelligence, visualization, autonomous vehicles, and cloud computing.

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.