Jim Cramer Discusses NVIDIA (NVDA)'s Accelerated Computing Market

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

NVIDIA Corporation (NASDAQ:NVDA) kicked off the year on a strong note after its latest announcement at CES. At the event, CEO Jensen Huang revealed his firm’s Vera Rubin AI computing platform and an AI storage infrastructure called NVIDIA Inference Context Memory Storage. Following the event, analysts reiterated their optimism about NVIDIA Corporation (NASDAQ:NVDA). For instance, Stifel reiterated a Buy rating on the shares and a $250 share price target. The financial firm commented that the chip company expects its backlog, which currently sits in excess of $500 billion, to grow. Along with Stifel, Piper Sandler also reiterated an Outperform rating and a $225 share price target, as it noted NVIDIA Corporation (NASDAQ:NVDA)’s valuation among other factors. The valuation has also been on Cramer’s mind, as in his recent comments, he has bemoaned that the firm has more intellectual property than the valuation would suggest. In this appearance, he explained how NVIDIA Corporation (NASDAQ:NVDA) is focused on AI and also commented on the share price movement:

“He’s got a list, Jensen, of the companies that are endorsing him. And it’s every single hyperscaler, that we always hear these reports saying that they’re not that interested. They’re all in. I would say, the most, the biggest takeaway I had, ten trillion dollars worth of traditional computing will have to be replaced. Ten trillion. Because we keep forgetting, we always talk about the chip. And now, yesterday, was about the software and hardware stack, that makes it so it can reason. And reasoning has been, until today, he was saying, that AI did compilations. Now they reason, inference. So you can have, that’s how you can, we’re going to get to it, you can reason with the robot, you can, this self-driving, he finally figured out, what he did when you were in his office, he had this continual loop of a car, over black ice. What matters there is that he was proving, that you do it on simulation. You don’t do it, you take a car out and smash it.

“And then he spends a huge amount of time on agentics. . .when he talks about agentics, what he’s saying is, look, these are as good as humans, if not better. . .people do not like this stock right now, the long knives are out. . .it’s a prove it situation, believe it or not. . .if you look at the way that the stock has traded, it’s prove it, then no prove it, prove it, no prove, we’re in the prove it phase. . .there are sellers at every single price and we’ve got to be aware of that. The notes were all positive today, it has the feeling that everybody that wants it, is in. And there’s always some clown which says he didn’t preannounce numbers. Which, by the way, he’s never done.

“You’ve got to understand, artificial intelligence, only half, it’s the accelerated computing and the ability to reason is Vera Rubin.”

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