Jim Cramer Defends NVIDIA (NVDA) After AMD's OpenAI Deal

We recently published 16 Stocks Jim Cramer Mentioned In An Episode Where He Said OpenAI Could Beat All Big Tech Giants. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.

NVIDIA Corporation (NASDAQ:NVDA)’s shares slipped after AMD and OpenAI announced a deal through which the latter would buy chips from the former. However, Cramer was unmoved by the shares going lower as he dismissed the idea that NVIDIA Corporation (NASDAQ:NVDA) would experience any slowdown in demand:

“Yes I mean a lot of people felt that there is going to be a big order from Broadcom. That didn’t happen. I know that what it says to me about NVIDIA is look, they got in there, and they have a bigger view because it’s ten gigawatt. The power is amazing, the amount they need. I think that, in the end, I know that this is going to sound fatuous, I think everybody wins. So NVIDIA goes down maybe five, six today. And then you have to buy it. Because I don’t think there’s any change in the demand.

“Jensen knows that Meta has to have social and glasses. He knows that self drive is Musk. He knows that robot is Musk. He knows that Google is search. No one wants to be Bing! This is about not being Bing! And I think people don’t understand, the shame of Microsoft that they [inaudible] Bing has been driving them for years.”

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.