People Should Have Listened to NVIDIA (NVDA)'s CEO, Says Jim Cramer

We recently published 15 Stocks on Jim Cramer’s Radar.  NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer's radar.

NVIDIA Corporation (NASDAQ:NVDA)’s shares are down by 1.3% year-to-date. RBC Capital set an Outperform rating for the stock and a $240 share price target for the firm in mid-January. Some of the factors that the financial firm discussed as driving its optimism included a $500 billion backlog, strong AI demand, and a sizable ecosystem. Cramer has also regularly discussed NVIDIA Corporation (NASDAQ:NVDA) over the past couple of months. Even though the shares have performed sluggishly, the CNBC TV host has asserted that the semiconductor company will continue to perform well due to the sizable demand for its processors. Along with RBC Capital, Wolfe Research also kept an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA)’s shares in January. The financial firm kept a $250 share price target and discussed the impact of China H200 GPU shipments. Cramer mentioned the firm’s CEO, Jensen Huang:

“Jensen knew, Jensen saw it coming. People should have listened to Jensen Huang. They should have listened to him. They didn’t.

“Jensen, people thought, at GTC, the conference where he laid out things. That he was way too bullish. That he was frankly, dreaming with the Vera Rubin. Dreaming, dreaming with the Feynman. That’s the next. And he saw it, but he would tell you, my job, I see things out 20 years and then I work backwards. Now don’t forget, Jensen, he is going tell you, that with the work that David Ricks and he’s doing at Lilly, being a 100. . .I wanna point out that Jensen did and others didn’t, he understood the demand. He went to Taiwan Semi and they believed in him.

“. . .but again, it does not have the power of what we just saw, Sanjay Mehrotra. . .because people don’t believe, the companies that are going to buy the chips, are going to build all that you are talking about. Remember you said they won’t build? NVIDIA needs everybody to build. One of the reasons why Jensen was out with the drug companies, at the healthcare conference, he needs to have the more than just the hyperscalers want chips. And he’s doing it. The demand was great, Taiwan Semi did not single them out by name.”

Giverny Capital Asset Management also mentioned NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

“I will end with a note of caution. While I am excited over TSMC’s prospects, I also perceive that enthusiasm over Artificial Intelligence has reached a level of euphoria. In late September, NVIDIA Corporation (NASDAQ:NVDA) announced a deal in which it would invest $100 billion in Open Al, the developer of ChatGPT. Open Al will use that money to buy Nvidia chips to use in new data centers. Nvidia essentially is financing a customer who might not otherwise have the capacity to buy $100 billion of Nvidia chips. Nor does the customer have a proven business model: Open Al is expected to lose $14 billion in 2026. Nvidia has done similar deals with other start-ups, most notably CoreWeave.

Maybe I’m just getting cranky, but these circular arrangements recall for me the dot com boom at the end of the 20th Century, when Lucent and Nortel financed start up customers who were building out communications infrastructure. While that infrastructure became the backbone of the Internet economy, many of the infrastructure pioneers went bankrupt along the way, as did Nortel, Lucent went from reporting a $4.8 billion net profit in 1999 to cutting its workforce by 80% and being acquired cheaply by the French company Alcatel in 2006…” (Click here to read the full text)

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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