Cramer reaffirmed his belief that the company is worth its $2.2 trillion valuation. To him, Nvidia wields immense power because its software can speed up processes and innovation, as well as cut costs, for companies in a wide array of sectors.
To Cramer, Nvidia’s market value isn’t as apparent as tech peers like Microsoft, Alphabet or Amazon, which offer services that are clearly seen as valuable by consumers. But Nvidia is enterprise-oriented, he said, which makes the company “a behind-the-scenes kind of story.” Even though its business may not be tangible to some, that doesn’t mean it’s not valuable, he added.
Many current digital processes currently run too slowly or are too cumbersome compared to what Nvidia’s technology can do, he said.
“If you want to create wealth in the stock market, sometimes you need to make a leap of faith, that you’re getting it right with [CEO] Jensen [Huang], because you have to, because, otherwise, you won’t see it coming, whatever the heck it is,” he said. “Let’s just say, though, I think AI’s bigger than the loom or the steam engine or the jet engine or the mainframe or the microprocessor, hey, perhaps all rolled into one.”
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Alphabet, Microsoft and Amazon.
Michael Johnson is a tech enthusiast with a passion for all things digital. His articles cover the latest technological innovations, from artificial intelligence to consumer gadgets, providing readers with a glimpse into the future of technology.
