NVIDIA's (NVDA) "Doubters Really Have a Lot of Thinking to Do," Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer discussed.

This show was aired the day after AI GPU designer NVIDIA Corporation (NASDAQ:NVDA) reported its earnings for its third fiscal quarter. The results saw the firm report $57 billion in revenue and $1.30 in earnings per share to beat analyst estimates of $54.9 billion and $1.25. Heading into the earnings, Cramer had asserted that NVIDIA Corporation (NASDAQ:NVDA) was still the "gold standard" and outlined that if the firm managed to smoothly launch its latest Vera Rubin chips, then "there might be a level where I say hey listen we own it from a very low basis." During this appearance, he discussed NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang's comment about a new "wave" of agentic AI systems that were capable of reasoning and analysis. Huang believes that the transition to generative AI is necessary for businesses, and the transformation to agentic and physical AI will be revolutionary. As he discussed NVIDIA Corporation (NASDAQ:NVDA) after the earnings, Cramer started by admitting that he was left short of words for a brief while:

"Last night, I went out to dinner and came back. For a couple of hours I thought what am I going to say today, it's such a different narrative from what we hear. And I think that what we heard last night was, these companies aren't spending enough. Everytime they spend, they make much more money. So they're trying to get as many chips as they can. Which is the opposite of what we're hearing. The circular analysis, David, there was, they're ready to sell anything they want to. They're up on almost everything. They're good investors, so the idea that there's this Lazy Susan circular nature, is defeated. And the notion, where we are in the world is far different from what people think. Far further and we're getting there. You know and the reason I start with this to you David, is because he's saying look the world is going to change so rapidly in the next three years and it's all gonna be software written on NVIDIA. I found that to be, I'm not saying that's revolutionary, that's too strong, but the doubters really have a lot of thinking to do. Including people who say bubble AI, who . . .don't know about the revolution that's occurring.

"I think that, if anything, I know obviously the President's very close to Jensen, but if anything, he bolstered the case. He basically said, without putting the words, because that keynote's better than that. Is that we own the Chinese if we want to. Because every software writer around the world, including the Chinese, will be writing on ours. And if you're really worried about the Chinese using NVIDIA chips you're out of your mind because we can program them if they want to. So they know that. The PLA will not use NVIDIA chips to build aircraft carriers. I thought it made a strong case for China. But again, doesn't need China. Because, oh my god, they have customers.

"[After David pointed out that many would say that all the money is made by NVIDIA] I think Collette would totally disagree with that. Because she's saying that billions are being made by those who take the chips. She's using the term billions.

"I do think that the big thing that we're not talking about, is that they're ready with Vera Rubin. Now I thought they're ready with Blackwell at GTC. And I was wrong. They weren't ready. But Collette is assuring us, the CFO is assuring us, it's going to be smooth. And if that's the case, gross margins are not going to get hit. And people are going to go nuts for it.

"Look I think it's early and the bear case for NVIDIA is very hard right now. Very hard. The bear case is I didn't listen to the call and I think it's overvalued."

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