Jim Cramer Highlights NVIDIA's Deal With Synopsys

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer’s radar. Cramer noted the company’s deal with Synopsys, as he said:

“NVIDIA unveiled an important initiative with Synopsys, an electronic design automation company. I think it is safe to pin any upside that happened in this market today from the good news from NVIDIA, which, by the way, rallied $2.92. That kind of rally from the world’s biggest stock is very important to the overall market… Synopsys received $2 billion from NVIDIA as an investment to cement the relationship… This announcement did two things.

One, it tells you that there’s going to be a replacement cycle of immense proportions since everything’s built around much slower CPUs versus NVIDIA’s GPUs. And two, that whatever you may think of that hyperscaler horse race to build out chatbots that we all know, that may not be as important now that this announcement has come out… NVIDIA’s work with Synopsys, while almost invisible to you, the consumer, has much more potential to actually make a lot of money.

Wall Street, you see, loves business-to-business. This is business-to-business. Will this Synopsys deal stem the selling in NVIDIA stock? Oh, it’s hard to tell given that we could get a data point tomorrow. It’s so critical of the big data center build-out that it takes everything down. Still, though, this deal matters. It wasn’t for show, it was for substance, business to business, and it turned at least that stock around today.”

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.

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