NVIDIA (NVDA)'s Got More IP Than a Dog Food Company, Says Jim Cramer

We recently published 9 Stocks Jim Cramer Talked About.  NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer talked about.

NVIDIA Corporation (NASDAQ:NVDA)’s shares have gained 36% year-to-date and have lost 8.9% since October’s end. The firm made quite a splash on December 24th after chip designer Groq announced that it had entered into a non-exclusive licensing agreement with it. Under the agreement, NVIDIA Corporation (NASDAQ:NVDA) will buy Groq’s assets for a $20 billion price tag to make it its largest acquisition to date. Earlier in December, Bernstein reiterated an Outperform rating on the shares and a $275 share price target. Bernstein pointed out that NVIDIA Corporation (NASDAQ:NVDA) is still waiting for US approvals to sell its H200 chips to China. Crucially, Bernstein also pointed out that the chip designer believes it enjoys a two-year advantage over Google’s TPU AI chips. These chips have been seen as an alternative to NVIDIA Corporation (NASDAQ:NVDA)’s pricey AI GPUs. Cramer also believes that the firm’s latest Rubin AI GPUs will make their mark felt:

“Yeah, this is the cheapest it’s been in a very long time when you look forward [price to earnings]. People should do that, this whole period, NVIDIA’s not been talking about what’s going on. . .you know something, NVIDIA speaks softly, but they carry the big Vera Rubin. . .it’s going to be very smooth, it’s not going to be like Blackwell. . .they’re ready, and don’t forget, it’s the big quantum leap that Jensen’s talking about.

“Remember, Jensen’s not using the number, the nine fifty, the nine fifty for 2027, I think it’s going to be a little more than ten. . .you’re paying the multiple for a dog food company. I think it’s got more intellectual property than a dog food company.”

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